Queen's Anniversary Prize Award

30 November 2011

Modern Water plc

("Modern Water" or "the Group")

QUEEN'S ANNIVERSARY PRIZE AWARDED TOFORWARD OSMOSIS TECHNOLOGY

Modern Water plc (AIM:MWG), the owner of leading water technologies for the production of fresh water and monitoring of water quality, is pleased to announce the award of the Queen's Anniversary prize to the University of Surrey.

The prize was won for the extensive and wide-ranging work achieved by the University's Centre for Osmosis Research and Applications (CORA) to address the global problems of fresh water availability and the treatment and disposal of wastewater. The award recognises the outstanding research and development achieved by CORA which benefitted from substantial funding and support from Modern Water.

The forward/manipulated osmosis technology developed by Professor Adel Sharif, Director of CORA, underpins the advanced membrane technologies commercialised by Modern Water. The Group owns the only commercial forward osmosis plant in the world and is currently developing further applications for this ground-breaking technology. The Queen's Anniversary Prize is the most prestigious honour open to a UK university and the University of Surrey was one of 21 institutions to win this accolade.

Professor Adel Sharif, Director of the Centre for Osmosis Research and Applications (University of Surrey), said: "Our mission is to provide affordable access to water for drinking and irrigation purposes. The Queen's Anniversary Prize is a significant endorsement of our work." The Centre's research activities have led to many innovations, the most notable of which is the development of Manipulated Osmosis Desalination which significantly improves access to safe drinking water and sanitation.

The 'Diamond Jubilee' (ninth) round presentations, to representatives from the winning institutions, will be made in February 2012 at a Buckingham Palace honours ceremony. The Queen's Anniversary Prizes for Higher and Further Education, awarded every two years, are part of the UK honours system, and promote world class excellence in UK universities and colleges.

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For further information:

Modern Water plc

Neil McDougall

Executive Chairman 01483 696011

www.modernwater.com

Media enquiries:

Tom Gough

HeadLand Consultancy 020 7367 5228

Peter La

Media Office

University of Surrey 01483 689191

p.la@surrey.ac.uk

Notes to Editors:

About Modern Water

Modern Water owns, installs and operates world-leading desalination technology and develops and supplies advanced systems for water monitoring. Its shares trade on the Alternative Investment Market of the London Stock Exchange.

Modern Water's patented forward osmosis technology has been proven to significantly reduce costs, lower energy consumption and lessen environmental impact in a variety of industries. With a sales presence in over 20 countries, the Group's Monitoring Division includes the world's best performing real-time continuous toxicity monitor and trace metal analysers for monitoring the quality of drinking water.

About the University of Surrey

The University of Surrey is one of the UK's leading professional, scientific and technological universities with a world class research profile and a reputation for excellence in teaching and research. Ground-breaking research at the University is bringing direct benefit to all spheres of life - helping industry to maintain its competitive edge and creating improvements in the areas of health, medicine, space science, the environment, communications, defence and social policy. Programmes in science and technology have gained widespread recognition and it also boasts flourishing programmes in dance and music, social sciences, management and languages and law. In addition to the campus on 150 hectares just outside Guildford, Surrey, the University also owns and runs the Surrey Research Park, which provides facilities for 140 companies employing 2,700 staff.

The Sunday Times names Surrey as 'The University for Jobs' which underlines the University's growing reputation for providing high quality, relevant degrees.

Surrey is a member of the 1994 Group of 19 leading research-intensive universities. The Group was established in 1994 to promote excellence in university research and teaching. Each member undertakes diverse and high-quality research, while ensuring excellent levels of teaching and student experience.