Halosource (Di) Regulatory News (HALO)

FOR IMMEDIATE RELEASE 26 June 2013

Contract Win

HaloSource Expands Clean Drinking Water Offerings into Latin America with H2O International & Fortune 500 Partner

HaloSource, Inc. (HAL.LN, HALO.LN), the clean water technology company, today announced a further expansion of its strategy to drive market presence for its leading HaloPure®water purification technology through a distribution contract with a major Fortune 500 Company and leading provider of branded consumer products. HaloSource will provide its gravity-based disinfecting water pitchers powered by its patented HaloPure media in five Latin American countries.

HaloSource has granted the customer certain exclusivity on the supply of devices in the territory, provided the customer meets certain minimum purchase levels. If satisfied, the arrangement is expected to provide HaloSource revenues of up to US $675,000 for the initial year of the contract and up to US $1 million in the second year of the contract.

The two companies came together through a mutual partnership with H2O International, Inc. (H2O) facilitated by founder Guillermo Guzman. With more than 20 years in the water purification industry, Guzman saw a perfect fit for HaloPure media, HaloPure's groundbreaking drinking water disinfection technology, which reduces waterborne viruses and bacteria by 99.9% while preventing bacterial recontamination, keeping treated water fresher for longer.

Guzman commented, "I am delighted to have been able to introduce two great partners who, together, will continue to bring a new definition of water purification efficacy to the pitcher business"

The new partnership will expand the reach of HaloPure media further into Latin America. In Q3 of last year, HaloSource announced its commercial entry into Brazil through a partnership with Pentair for co-branded water pitchers and replacement cartridges in Brazil.

Martin Coles, Chief Executive Officer of HaloSource commented, "We are thrilled at the prospect for our new partnership, working with one of the world's largest Consumer Products companies with an incredibly strong portfolio of products. Our new partner's reach, reputation and consumer acceptance in markets across the world continues to be a clear endorsement of the strength and trust in our HaloPure technology and I look forward to being able to bring the promise of safe, clean drinking water to more consumers and families in South America. This is another large vote of confidence for us in an enormous segment, drinking water purification, which is still in its infancy."

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About HaloSource

HaloSource (halosource.com) is a global clean water technology company headquartered in Bothell, Washington, U.S.A. We design solutions to protect people, preserve the planet and celebrate our most valuable resource-water that is safer, cleaner and more accessible for people everywhere.

HaloSource is committed to relentless innovation, industry-leading products and ongoing support for water-related philanthropy. Our proprietary technologies for drinking and recreational water, textile coatings, and environmentally friendly wastewater recycling, enable our partners to rid the world's water of impurities and return it responsibly to the earth.

HaloSource Technologies that Protect Water and Textiles:

• HaloPure media is the most flexible, price-competitive disinfection solution for clean drinking water in the industry. In 2009, it became the first drinking water technology in 30 years to be registered by the United States Environmental Protection Agency (USEPA), widely recognized as having the world's most stringent performance requirements for water purification. In 2010, HaloPure media was approved by China's Ministry of Health (MOH) and recognized for meeting the world's most stringent water purification requirements, a key differentiator for our multi-national partners. In Brazil, the use of HaloPure media has met or exceeded all appropriate standards of the National Institute of Metrology, Standardization and Industrial Quality (INMETRO).

• SeaKlear® Pool and Spa treatment products bring both natural biopolymers and antimicrobial applications for treating recreational water.

• HaloShield® products consist of antimicrobial coatings solutions that employ unique technology that binds chlorine--‐based bleach to textiles such as sheets, lab coats and towels for use as a non--‐toxic biocide.

HaloSource Technologies that Preserve the Environment:

• HaloKlear® products use natural biopolymers providing industrial water clarification with dramatic reductions in ecological impact.

HaloSource Celebrates Clean Water:

HaloSource supports organizations dedicated to sustainable clean water projects. Currently, the company is working to provide clean water to a village in the Mdolo region of Malawi with their partner A Barefoot MileFoundation, and the company recently became a platinum sponsor of Wishing Well International Foundation.

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