(HAL) Halosource (Reg S)

                                                                                                                              17 April 2012                                                                                

Halosource Signs First Strategic Chinese Partner

Perfect Water Purification Manufacturing Co. Ltd will deploy HaloPure^® technology in drinking water purification devices

HaloSource, Inc. ("HaloSource" or the "Company") (HAL.LN, HALO.LN), the clean water technology company, today announces a partnership with its first Chinese partner, Perfect Water Purification Manufacturing Co. Ltd., a leading global supplier of consumer goods with US$1.6 billion in sales in 2010. 

The partnership marks HaloSource's entry into the direct selling channel for drinking water purification devices in China.  Under the terms of the partnership agreement, HaloSource's HaloPure® cartridges will be inserted into Perfect's multi-stage water purifier to deliver 99.9% reduction of virus and bacteria. 

HaloSource has granted Perfect the exclusive right to sell devices powered by HaloPure® technology through its direct sales channels in the pressurized water purification segment in China. To maintain this exclusive right, Perfect is required to purchase a minimum of 500,000 units annually, representing approximately US$4.5 million of revenue for HaloSource. 

The overall market for drinking water devices in China is estimated to be worth more than US$2.5 billion annually and growing at more than 20% CAGR, according to research group Frost & Sullivan. 

Martin Coles, CEO of HaloSource commented, "We are delighted to announce the news of our agreement with Perfect, a global leader in consumer product sales in China. The agreement ties completely to our new strategy of building strong partnerships with leading companies that are able to deploy successfully our technologies.

We are proud of the HaloPure® media's distinction as the first and only drinking water purification technology to be approved under a new tough standard developed by China's Ministry of Health (MOH) in April 2011, engaging with Perfect shortly thereafter to begin development of this breakthrough line of products."  

In 2010, Perfect was ranked as one of the Top 10 Global Direct Sales companies in the world by Power Networking monthly magazine, with US $1.6 billion in sales. It was also the second enterprise to be approved by the Chinese government to market its products directly to consumers, through more than 6,000 outlets across China. 

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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 the reach and application of its innovative technologies (geography, product, and channel).

·     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.