MWG.L Regulatory News (MWG)

15 February 2011

Modern Water plc

("Modern Water" or "the Group")

MODERN WATER SECURES FURTHER ORDERS FOR CYMTOX IN CHINA

Modern Water (AIM:MWG), the owner of leading water technologies focused on addressing the scarcity of fresh water, the treatment of wastewater, and monitoring of water quality, announces today further sales orders for its Cymtox Continuous Toxicity Monitor (CTMTM) units from China. This represents a significant boost for the Group's newly established MW Monitoring division which includes the Cymtox technology and the recently acquired Cogent Environmental business.

The new Chinese order is for 25 units and stems from a robust pipeline of potential orders, which follows previous sales in this important and influential region.

Neil McDougall, Executive Chairman of Modern Water, said, "The receipt of this substantial order signifies the success we are experiencing with our Cymtox CTMTM in China. Our product is currently being used to monitor surface waters and detect industrial spillages. We intend that this will lead to a gradual characterisation and improvement of the quality of surface waters in China, and expect this key market to continue to experience major growth over the coming years."

Due to legislation in China and other parts of South East Asia, toxicity monitoring is being applied to all water intakes for potable use above a certain size. Since 2005, Chinese Government policy has stated that automated water quality monitoring systems, which provide real-time data, should be installed next to all possible polluting sources. This represents a significant opportunity for Modern Water's monitoring product offering.

The Cymtox CTMTM protects water supplies from deliberate or accidental contamination through real time on-line monitoring of thousands of toxic compounds. It detects sudden contamination in surface and ground waters from wastewater inflows. This means that it can immediately identify pollution events which could lead to a serious environmental incident.

Cymtox also allows mitigation measures to be put in place which helps to avoid widespread contamination. It can be used to monitor wastewater for recycling to ensure that contaminated water is satisfactorily cleansed before reuse. The technology is also used to protect wastewater works from toxic shock that can kill wastewater biology and cause closure of wastewater works and possible carry-through of toxic burden into receiving waters.

The Group's new division, MW Monitoring, was established to consolidate the Group's activities in the instrumentation and monitoring industry. The recent acquisition of Cogent Environmental offers MW Monitoring established routes to market and access to existing distributor arrangements. This ensures that the Group is well placed to capitalise on the opportunities currently abounding in the environmental protection and monitoring industry in China and around the world.

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For further information:

www.modernwater.co.uk