HAL.L Regulatory News (HAL)

21 August 2015

HaloSource, Inc.

("HaloSource" or the "Company")

HALOSOURCE AND PANASONIC TO LAUNCH CONSUMER DRINKING WATER PRODUCTS INTO THE INDIAN MARKET

HaloSource Inc. (HAL.LN, HALO.LN), the global clean water technology company traded on London's AIM, announces today its agreement with Panasonic India Private Limited ("Panasonic India"), a wholly-owned subsidiary of Panasonic Corporation, to launch a line of Panasonic branded, gravity-fed, water purification devices powered by HaloSource's HaloPure® water purification technology into the Indian market at the end of August 2015. Panasonic Corporation is a worldwide leader in the development of diverse electronics technologies and solutions for customers in the consumer electronics, housing, automotive, enterprise solutions and device industries.

Panasonic's product launch in India will include a range of gravity-fed water purification devices targeting low and middle-income consumers in urban and rural markets. These products will deliver HaloSource's superior disinfection power without the need for electricity and includes a first of its kind drinking water purification device designed to fit onto the clay pitchers that offer a larger volume of storage and are commonly used in homes in rural India. Panasonic's strong go-to-market strategies are expected to further drive the launch.

The residential drinking water purification market in India, the fifth largest market globally, was estimated to total approximately US$1 billion in 2014 and is expected to grow 7-9% CAGR by 2019 (source: 2015 Baytel Report). The market is fragmented and, in rural markets in particular, there is limited awareness of these devices and also a lack of affordable solutions. The gravity-fed water purifier segment accounts for 45% of new unit sales in India driven by low electricity in rural areas and affordability (source: 2015 Baytel Report).

HaloSource's HaloPure® disinfection technology has been registered by the US EPA for water purification*. The drinking water purification devices powered by HaloSource's HaloPure® water purification technology can significantly and quickly kill waterborne viruses by 99.99% and bacteria by up to 99.9999% while preventing bacterial recontamination and, coupled with antimicrobial storage, will keep treated water fresher for longer.

Martin Coles, CEO of HaloSource, commented,

"We are pleased to be working in partnership with Panasonic, a global consumer product goods leader committed to the cause of bringing clean water to consumers across India. This agreement further reinforces the value placed by the world's largest brands on the efficacy of our EPA approved bromine-based purification system and our strategy of being the water purification technology inside the devices of market-leading partners around the globe. HaloSource's proven and differentiated technologies and solutions help our partners provide their customers best-in-class water purification devices.

Panasonic is a leading, global brand and business with a long and successful history of pursuing superior performance and value through technology innovation for its customers. At HaloSource, we look forward to working as a trusted partner with Panasonic in helping them drive growth in the important gravity-fed water purification market in India."

Daizo Ito, President of Panasonic India, commented:

"India is facing the very big and growing challenge of access to safe drinking water, which has become more acute over the years. This, coupled with increased awareness of the risks that unsafe drinking water brings, has led to a rapid rise in demand for water purifiers in the country. However, the challenge has always been introducing an affordable yet effective water purifier solution. Given this need that exists, Panasonic India, in partnership with HaloSource, has introduced new water purification devices to help provide clean, purified water to all across urban India and especially those in rural markets."

* EPA registrations apply to certain US models only.

Enquiries:

About HaloSource

HaloSource, Inc. creates innovative solutions for water purification that serve people, preserve the planet and protect our most valuable resource. The Company works with scientists and industry experts across the globe in search of new ways to improve water quality and has been awarded more than 70 patents for its ground breaking chemistries, which provide effective and environmentally responsible solutions to the growing issue of water stress.

Founded in Seattle, Washington, HaloSource has grown to become an influential leader in three market segments: drinking water, recreational water, and environmental water treatment and remediation. HaloSource is headquartered in the US with operations in China and in India. Learn more about the Company's research and development and future cutting edge technologies by visiting www.halosource.com.

HaloKlear, HaloPure, SeaKlear and HaloShield are either trademarks or registered trademarks of HaloSource, Inc. All other trademarks, brand names or product names belong to their respective holders.

About Panasonic Corporation

Panasonic Corporation is a worldwide leader in the development of diverse electronics technologies and solutions for customers in the consumer electronics, housing, automotive, enterprise solutions and device industries. Since its founding in 1918, the company has expanded globally and now operates 468 subsidiaries and 94 associated companies worldwide, recording consolidated net sales of 7.715 trillion yen (c.US$4, 500 billion) for the year ended March 31, 2015. Committed to pursuing new value through innovation across divisional lines, the company uses its technologies to create a better life and a better world for its customers. To learn more about Panasonic: http://www.panasonic.com/global.