MWG.L Regulatory News (MWG)

27 September 2018

Modern Water plc

("Modern Water", "the Company" or "the Group")

Modern Water Deepens Technology Partnership in China

Modern Water plc (AIM:MWG), the owner of leading technologies for water and wastewater treatment and for the monitoring of water quality, is pleased to announce that it has licensed its proprietary forward osmosis technology for use in a demonstration plant to treat leachate from a landfill site in China.

Modern Water's customer, Hangzhou Shangtuo Environmental Technology Co. Ltd. (trading as "Sunup"), will use the demonstration plant to enhance its existing technological offering for the treatment of leachate from landfill sites. "Landfill leachate" is liquid that drains from landfill sites and contains significantly elevated concentrations of undesirable substances derived from the material that the liquid has passed through, requiring treatment in order to avoid the polluted liquid flowing into groundwater. Sunup has been carrying out numerous projects treating landfill leachate and the overall market in China consists of 10,000 existing landfill sites.

Modern Water's forward osmosis technology provides a particularly compact and operationally resilient way of treating leachate on the landfill site itself. As a pioneer in forward osmosis technologies, Modern Water has substantial experience in the practical deployment of the forward osmosis process. This expertise combined with Sunup's experience in treating landfill leachate in China will enhance the parties' access to a large and growing market.

Modern Water and Sunup recently created a joint venture for the commercialisation of Modern Water's proprietary brine concentration technology in China and Sunup took a 5% stake in Modern Water. The companies' new co-operation to use forward osmosis to treat landfill leachate represents a further deployment of Modern Water's innovative world-leading technologies in the rapidly growing market of China for waste-water treatment.

Simon Humphrey, Modern Water's CEO, said: "Modern Water is delighted with our close partnership with Sunup, which has a successful water treatment business in China. It allows us to deploy our core technologies in new and challenging applications in the Chinese market. This is clear evidence of the deepening co-operation between the world-class technical experts of Modern Water and Sunup. We are particularly pleased that this project uses forward osmosis as it is the technology on which Modern Water's business was founded."

Commenting on the project, Noah Tan, Sunup's CEO said: "The treatment of landfill leachate offers many business opportunities in China and I am delighted that our partnership with Modern Water is deepening, allowing Sunup to enhance our already growing landfill leachate business by offering our customers in China cutting-edge technology. Only by deploying cutting-edge technologies can we solve the increasingly complex issue of industrial waste-water treatment in China."

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Notes to editors:

Modern Water is a pioneering and innovative technology company, specialising in membrane water treatment solutions and advanced monitoring products. The company works for customers in a range of industries across the globe and owns proprietary technologies for use in a diverse range of applications. Modern Water's Monitoring Division has a portfolio of world-leading toxicity and trace metal monitoring products, some of which constitute the regulatory standard. The headline technology of the Company's Membrane Division, the AMBC, can be used to tackle complex waste water treatment problems at a reduced cost compared to standard processes, while being simple to operate.

www.modernwater.com