Halosource (Di) Regulatory News (HALO)

FOR IMMEDIATE RELEASE 22 February 2012

Significant New strategic partnership

HALOSOURCE, INC. and SIGSA STRENGTHEN Relationship

through powerful ENVIRONMENTAL WATER PARTNERSHIP

 SEATTLE (BUSINESSWIRE), 22 February 2012 - HaloSource, Inc. (HAL.LN, HALO.LN), the clean water technology company, and Servicios de Ingeniería Geosintética, S.A. (SIGSA) announce today a strategic partnership to develop and deploy the unique eco-friendly HaloKlearTM Dual Polymer System ("DPS") water treatment technology in dry form for use in SIGSA's Latin American industrial water-treatment markets. These applications include construction storm-water run-off, hydro-electric dam construction and dredging projects. An exclusive supply agreement will follow this funded development, which will provide SIGSA with exclusivity in certain key markets in exchange for minimum commitments. Management expect that at full scale this exclusive supply agreement has the potential to provide up to US$1 million in annual revenue for HaloSource.

SIGSA has already been purchasing the current HaloKlear DPS product for multiple projects and this partnership is a major step forward in deploying the "next generation" DPS technology, delivering higher value from both a performance and cost perspective. The use of the innovative HaloKlear technology in commercial scale eco-friendly water treatment has put HaloSource as a leader in the industry. Latin American markets demonstrate strong and sustained demand for an all-natural and environmentally responsible solution for commercial water treatment, and the HaloKlear biopolymer solution reduces the user's carbon footprint by eliminating the previous industry practice of transporting chemically contaminated material, resulting from conventional water treatment processes, to landfill for burial. The environmental advantages along with the DPS product's performance and cost effectiveness make it a win-win for SIGSA in Latin America.

Martin Coles, CEO of HaloSource commented, "While HaloSource has been in the storm water remediation market in the United States for many years, we are delighted to partner with SIGSA, one of the strongest players in Latin America and a company with a tremendous heritage of environmental responsibility and stewardship. Our relationship with SIGSA is another step forward in our strategy to deliver our world-class technologies in water treatment through deeper strategic partnerships. Key industry players like SIGSA share our commitment to environmental responsibility and create access for people across the world to clean, safe water - whether they drink it, play in it or put it back into the environment."

HaloSource's HaloKlear product line ensures clean, safe and healthy water sources by removing contaminants from storm water runoff at construction sites, drilling projects, dredging operations and contaminated water resulting from oil and gas exploration, enabling operators to meet stringent local, state and national requirements around the world.

SIGSA President Nicky Araujo commented, "The appeal of the HaloKlear DPS technology is driven by its superior performance in particle removal using an all natural and environmentally friendly ingredient base. This eco-friendly solution coupled with the impact on our overall reduction in our carbon footprint has made this expansion of our partnership an easy decision. We are proud to be leading the way for the industry in adopting this technology."

About HaloSource

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

·; HaloKlear products employ natural bio-polymers to provide water clarification on an industrial scale with dramatic reductions in ecological impact

·; HaloPure® 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 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. www.halosource.com

Under new CEO Martin Coles' leadership, the Company's new strategy incorporates the following core principles as key to driving growth:

·; Cultivating deeper more meaningful strategic relationships with select industry players across all segments of the business enabling the Company to expand its reach and application of its innovative technologies (geography, product, and channel). Being more open to structures that leverage core competencies of each party.

·; Focusing on product innovation around the Company's core technologies in its various segments.

·; Building brand awareness with a relentless focus on the end user, understanding their needs and developing appropriate solutions using the Company's unique technologies and approach.

·; Investing in our people to ensure we have the right talent in the right places at the right time in line with our growth ambitions, partnerships and key markets.

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

About SIGSA

Based in San Jose, Costa Rica, SIGSA is one of Grupo Araujo's companies, with more than 20 years providing consulting and specialized installations in civil, environmental and geosynthetics applications. With more than 65 million square meters of installed linings, SIGSA has gained its reputation in the region with certifications from international associations. SIGSA supports regional agents in El Salvador, Guatemala, Honduras, Bolivia, Argentina and the Dominican Republic. SISGA provides services to industry sectors including:

·; Mining

·; Petrochemical

·; Industrial

·; Commercial

·; Municipal

·; Industrial Waste

·; Residential

·; Government

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