HAL.L Regulatory News (HAL)

Halosource'S GREEN TECHNOLOGY EXPANDS INTO INDONESIA

PT.Basuki Water Indonesia to Deploy Innovative Environmental Water Solutions

JAKARTA, 12 June 2012 - HaloSource, Inc. ("HaloSource") (HAL.LN, HALO.LN), the clean water technology company,has entered into a major supply agreement with PT.Basuki Water Indonesia. Under the exclusive agreement, Basuki will have the right for three years to sell HaloSource's HaloKlear™ products throughout Indonesia. The partnership with Basuki marks HaloSource's entry into Southeast Asia and is expected to result in minimum sales of US$0.5 million for HaloSource in the first year.

The HaloKlear line of natural biopolymers and innovative hybrids clean water and control erosion in the construction; oil and gas; municipal water; and mining industries among others. With over ten years' experience in treating water, HaloSource's pioneering scientists have leveraged their unique expertise across multiple applications - from swimming pools to drinking water, and now in the environmental segment.

Martin Coles, CEO of HaloSource commented,"It is truly exciting for HaloSource to expand our reach into Indonesia with Basuki. This relationship is another proof point inour strategy to build strong partnerships with leading companies like Basukithat are able to successfully deploy our environmentally friendly technologies. HaloKlear products have proven to be extremely effective in large projects across North and South America, and we anticipate the same success in Indonesia."

WidagdoBasuki, President Director for PT.Basuki Water Indonesia, added,"Synthetic polymers have historically been used in our industry with mixed results. We discovered a greener and more effective alternative on YouTube in which Dr. Everett Nichols from HaloSource demonstrates the effectiveness of HaloKlear products. We appreciate the commitment shown by the HaloSource to helping us address Indonesia's substantial water treatment opportunity. With a population of over 238 million people, Indonesia is the world's fourth most populated country in the world. Basuki is becoming a major player in the market to clean up water."

About HaloSource

HaloSource is a global clean water technology company headquartered in Seattle, U.S.A focused on the provision of cleaner, clearer and safer water using its proprietary technologies across four platforms:

·; HaloKlear products clarify water on an industrial scale with dramatic reductions in ecological impact

·; HaloPure®beads became the first drinking water technology in 30 years to be registered by the United States Environmental Protection Agency ("USEPA"). In 2010, HaloPure was approved by China's Ministry of Health ("MOH") and widely recognized as the world's most stringent performance requirements for water purification, a key differentiator for our multi-national partners

·; SeaKlear® Pool and Spa treatment products bring both natural bio-polymers and antimicrobial applications for treating recreational water

·; HaloShield® products bind chlorine-based bleach to textiles such as sheets, lab coats and towels for use as a non-toxic biocide.

HaloKlear, HaloPure, SeaKlear and HaloShield are either trademarks or registered trademarks of HaloSource, Inc.

www.halosource.com

About PT.Basuki Water Indonesia

Basuki Water is a family-owned water treatment and supply company based in Jakarta, Indonesia. The company is a member of BASUKI group that began in 1981 as a Boiler, Cooler, Condenser and Heat Exchanger manufacturer in Indonesia. Realizing the that even the best boiler and cooling water treatment still depends on the quality of the water, the company furthered the business line into Sea, Fresh & Waste Water Treatment to close the loop of water treatment system for a possible Zero Liquid Discharge condition. The company also works with companies to help manage water out of oil and gas exploration. Finally, Basuki has built ice and beverage plants to supply Indonesians with quality ice tube, bottled water and other beverages but it has another function in understanding deeply all aspects of water treatment.

http://www.basukiwater.com

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