Halosource (Di) Regulatory News (HALO)

HaloSource receives HALOPURE® approval from chinese ministry of health

Seattle, U.S.A. - HaloSource, Inc. ("HaloSource" or "the Company") (HAL.LN, HALO.LN) the clean water and antimicrobial technology company, today announces that it has received formal approval from the Chinese Ministry of Health for its HaloPure® drinking water purification technology for use in China.

China's Ministry of Health has issued the formal approval under a new process developed to ensure the safety and efficacy of new technologies employed in products that impact human health. HaloPure® is the first new drinking water purification technology to be approved under these standards.

HaloSource Water Purification Technology (Shanghai) Co. Ltd. (海罗索斯净水科技上海有限公司) the Company's wholly owned subsidiary in China, will begin the supply of HaloPure® powered components, cartridges and complete devices to a variety of China based partners following this approval. Imported products containing HaloPure® disinfection technology may also now be registered for sale in China. The drinking water purification market in China is estimated by research group Frost & Sullivan to be worth more than $2.5 billion annually and is growing at more than 20% CAGR.

HaloSource has operated from its Shanghai, China facility since 2009, developing local channel and distribution relationships along with the manufacture of HaloPure® products for export. Further underscoring its commitment to the China market, the Company also recently completed ISO9001:2008 accreditation of its Shanghai facility by NSF International.

Commenting on the accreditation, Eric Robinson, Executive VP Operations and Chairman of HaloSource Water Purification Technology (Shanghai) Co. Ltd. said: "HaloSource has always had structured and robust quality management systems as our world class partners demand the highest level of discipline and rigor in our manufacturing processes. Certification by NSF of our Shanghai facility to the ISO9001:2008 standard further validates our quality processes in support of the needs of our global customers and reflects the hard work of our China Managing Director Joseph Chen and his team".

John Kaestle, Chief Executive of HaloSource, commented: "HaloSource can now start to benefit from the enormous market opportunity to assist in providing safe, affordable, drinking water at the point of use to hundreds of millions of Chinese consumers. Becoming the first new drinking water purification technology approved by the Chinese Ministry of Health since the establishment of new standards is another banner achievement for HaloPure®, and is a key milestone for HaloSource in its first year as a public company".

In 2009, HaloPure® became the first new drinking water technology in 30 years to be granted both Manufacture-For-Use and Device registrations by the United States Environmental Protection Agency (USEPA), widely recognized as having the world's most stringent performance requirements for water purification. HaloPure® is a unique contact biocide technology that is proven to attack and kill a wide range of harmful microorganisms and is approved for long-term use in a variety of markets, including the United States.

ENDS

About HaloSource

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

HaloPure provides safer drinking water. In 2009, it became the first new drinking water technology in 30 years to be granted both Manufacture-For-Use and Device registrations by the United States Environmental Protection Agency (USEPA), which is widely recognized as having the world's most stringent performance requirements for water purification. HaloPure® is a unique contact biocide technology that is proven to attack and kill a wide range of harmful micro-organisms and is approved for long-term use in a variety of markets, including the United States.

SeaKlear and StormKlear products use a second technology based on natural bio-polymers to provide water clarification and antimicrobial applications for treating recreational and environmental water; and HaloShield facilitates the binding of chlorine-based bleach to textiles such as sheets, lab coats and towels. www.halosource.com

About HaloSource's Markets

HaloPure products are principally targeted at consumers in emerging market countries, where access to safe drinking water is particularly poor. In an independent analysis of the global Point of Use drinking water device market carried out in 2005, Frost and Sullivan concluded that:

·; the market for residential 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 for residential 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 global markets for filtration formats in the form of under-the-sink, counter top and replacement cartridges were growing annually at 20 per cent, 21 per cent and 18 per cent, respectively.

The World Health Organisation has estimated that 1.1 billion people lack access to safe drinking water and the Centre for Disease Control is recommending Point Of Use filtration and disinfection.