August 8, 2007 Securities

Montréal – The Autorité des marchés financiers (AMF) has launched a penal proceeding in the Court of Québec (Criminal and Penal Division), district of Montréal, against Guy Goulet for failing to report, within 10 days of the event, changes in his control over the securities of a reporting issuer, namely, H2O Innovation (2000) inc., in respect of which he is an insider.

Mr. Goulet faces 11 charges for violating section 97 of the Québec Securities Act, with reference to section 174 of the Securities Regulation. The total fine being sought is $22,000.

Insiders are required to report, within 10 days of the event, any change in their control of the securities of a reporting issuer via the System for Electronic Disclosure by Insiders (SEDI) at (www.sedi.ca This link will open in a new window), thereby giving all investors access to the information within a reasonable time period.

The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec’s financial sector.

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