Bluewater Bio International

Signing Memorandum of Understanding with Vodárny A Kanalizace Karlovy Vary, A.S. in the Czech Republic and establishment of Bluewater Bio CEE subsidiary

5 September 2008

Bluewater Bio International ("Bluewater Bio" or the "Company"), the provider of an advanced wastewater treatment solution named HYBACS, is pleased to announce that it has entered into a memorandum of understanding with Vodárny A Kanalizace Karlovy Vary, A.S. ('KVVaK'), a water and sewage operator company based in the Czech Republic.

Bluewater Bio and KVVaK wish to collaborate on a pilot plant evaluation of Bluewater Bio's HYBACS process in order jointly to assess HYBACS's suitability for the Czech Republic wastewater market. The pilot plant will be a complete automated wastewater treatment plant deploying the HYBACS Process, contained within a standard transportation container. 

KVVaK is a water and sewage operator based owned 50% by Suez Environment (Ondeo), a world leader in the water and environment sector, and 47% by the Water Management Association of West Bohemia, a consortium of 87 municipalities in the region. It is based in the famous spa town of Karlovy Vary.

Bluewater Bio is also in the process of establishing a 100% owned subsidiary in the country, Bluewater Bio CEE, and has appointed David Paul, based in Prague and who has worked in the Central European region for over 17 years, as its CEO. Mr. Paul is an Industrial Engineer with an MBA from University of Chicago.

David Paul, said, "I am delighted to be instrumental in helping forge the relationship between KVVaK and Bluewater Bio and in establishing Bluewater Bio CEE as the first Bluewater Bio subsidiary in the region."

Daniel Ishag, CEO of Bluewater Bio, commented "Bluewater Bio is very pleased to announce that it will be conducting its first study in a CEE country with a company of KVVaK's stature. Bluewater Bio sees the CEE region as a strategic imperative; the wastewater space in the Czech Republic, and the twelve EU accession nations as a whole, will be driven by the adoption of existing European wastewater legislation and, through its Cohesion Funding, the EU is and will be making significant funds available for that purpose over the course of the coming several years. We consider the CEE region as the main growth area for the industry over that period, with a focus on cost effective nutrient removal wastewater treatment infrastructure, such as the Company's HYBACS solution provides."  

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Notes to Editors 

About Bluewater Bio 

Bluewater Bio International designs and markets a highly innovative advanced biological solution to the treatment of wastewater, called HYBACS. This system deploys a different biological approach to any internationally established wastewater treatment process. Through its design and operation, HYBACS biologically selects a particular group of bacteria, Bacillus, with unusual natural properties which if correctly stimulated exhibit higher biological reaction rates than other known naturally occurring bacteria. 

The Company believes that HYBACS will be proven to be commercially superior to the majority of existing comparable treatment processes worldwide, and is able to treat efficiently both municipal wastewater as well as a wide range of organic industrial wastewaters, including highly concentrated livestock wastewater and the effluent from, among others, breweries, food processors, textile manufacturers, hospitals, factories and residential developments.

Bluewater Bio is looking to make sales of its HYBACS technology globally.

Key benefits of the HYBACS system include: 

HYBACS produces high quality treated wastewater, treating the biological waste in municipal wastewater down to 10 mg/L BOD (Biological Oxygen Demand), and up to 99 per cent. treatment of the biological waste in concentrated wastewaters;

HYBACS requires between five and 15 per cent. less capital expenditure than most widely installed comparable technologies to achieve these performance qualities on a like-for-like basis;

HYBACS requires between 22 and 30 per cent. less ongoing operating expenditure based on an overall lower energy consumption requirement on a like-for-like basis;

HYBACS is highly suited to plant retrofitting which makes HYBACS more suitable for various types of plant upgrading as compared to many other advanced modern wastewater treatment processes. In applications where odour levels emanating from the plant may be an issue, the HYBACS process removes offensive odour without the requirement for additional deodorisation facilities which involve additional capital and operating expenditures; and

HYBACS removes approximately twice the concentration of E. coli bacteria, compared to conventional technology which may result in moderately reduced operating expenditure at sites where disinfection of the effluent is required.

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