HAL.L Regulatory News (HAL)

THIS ANNOUNCEMENT IS NOT FOR DISTRIBUTION, DIRECTLYOR INDIRECTLY, TO US PERSONS OR IN OR INTO THE UNITED STATES (INCLUDING ITS TERRITORIESAND POSSESSIONS, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA), CANADA,AUSTRALIA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERETO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCHJURISDICTION.

This announcement is not an admission document. This announcement does not constitute or form a part of, and should not be construedas, any offer or invitation to sell or issue, or any solicitation of any offer topurchase or subscribe for, any securities in HaloSource, Inc. nor shall it, or anypart of it, or the fact of its distribution, form the basis of, or be relied on inconnection with, any contract or investment decision in relation thereto. This announcementdoes not constitute a recommendation regarding any securities. Any investment decisionmust be made exclusively on the basis of the final admission document issued in connectionwith the placing and the admission to AIM.

The securities discussed herein have not beenand will not be registered under the US Securities Act of 1933, as amended (the "USSecurities Act") and may not be offered or sold in the United States absent registrationor an exemption from registration under the US Securities Act. No public offeringof the securities discussed herein is being made in the United States and the informationcontained herein does not constitute an offering of securities for sale in the UnitedStates, Canada, Australia, Japan or the Republic of South Africa or in any otherjurisdiction in which such offering would be unlawful.

18 October 2010

HALOSOURCE JOINS AIM

HaloSource, Inc. ("HaloSource"or "the Company") (HAL.LN, HALO.LN) the clean water and antimicrobial technologycompany, today announces the first day of trading of its Common Shares on the AIMmarket of the London Stock Exchange.

Admission to trading follows a placing of thecompany's new and existing Common Shares, which raised approximately £50.4 million($80 million) before expenses, of which approximately £31.5million ($50 million) was raised for the Company and approximately £18.9 million($30 million) for certain selling shareholders. The Company will be capitalised at approximately£100 million ($158 million),at the placing price of 135 pence per share, when the shares commence trading thismorning. Following the placing, HaloSource has 73,771,162 Common Shares in issue.

The unrestricted Common Shares trade under theticker HALO.LN with ISIN US40638H1086 and may be traded as Depositary Interests inCREST. The new Common Shares and some of the existing Common Shares trade under theticker HAL.LN with ISIN USU4063G1077 and are Reg S restricted and therefore tradeoutside CREST.

Liberum Capital is acting as Nominated Adviserand Broker to the Company.

John Kaestle, CEO of HaloSource, said: "We aredelighted that the admission of the Company to trading on London's AIM market hasbeen completed successfully. The funds raised through theplacing enable us to invest in additional staff, programs, manufacturing facilitiesand working capital to meet the needs of a growth business.

We believe that the admission to trading on AIM,an ideal fit for a rapidly expanding international technology company, gives us theinternational visibility and funding opportunities to deliver attractive returnsto our shareholders."

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About HaloSource

HaloSource is a clean water technology company,headquartered in Seattle, US with operations in India and China. It is focused onthe provision of cleaner, clearer and safer water using its proprietary N-halaminebead technology to clean and purify water, killing bacteria and viruses that maycause disease.

While HaloPure provides safer drinking water;SeaKlear and StormKlear products use a second technology based on natural bio-polymersto provide water clarification and antimicrobial applications for treating recreationaland environmental water; and HaloShield facilitates the binding of chlorine-basedbleach to textiles such as sheets, lab coats and towels.

About HaloSource's Markets

HaloPure products are principally targeted atconsumers in emerging market countries, where access to safe drinking water is particularlypoor. In an independent analysis of the global Point of Use drinking water devicemarket, Frost and Sullivan concluded that:

· the market forresidential water treatment equipment in China was estimated at $960 million in 2005,growing at an annual rate of 20.4 per cent between 2004 and 2011;

· the market forresidential drinking water devices in India was estimated at $425 million in 2009,and experiencing growth of approximately 25 per cent annually; and

· in 2005 the globalmarkets for filtration formats in the form of under-the-sink, counter top and replacementcartridges were growing annually at 20 per cent, 21 per cent and 18 per cent, respectively.

The World Health Organisation has estimated that1.1 billion people lack access to safe drinking water and the Centre for DiseaseControl is recommending Point Of Use filtration and disinfection.