Halosource : Perfect Water Manufacturing Renews Excl Agreement

HaloSource, Inc.

('HaloSource' or the 'Company')

Perfect Water Manufacturing Renews Exclusivity Agreement with HaloSource

HaloSource, Inc. ('HaloSource' or 'the Company') (HAL.LN, HALO.LN) the clean water technology company, today announces that it has entered into a new 3-year agreement with Perfect Water Manufacturing Co. Ltd ('Perfect') that will continue to provide Perfect with exclusive access to HaloSource's patented HaloPure® Disinfection technology for pressurized devices in the direct-selling channel in China.

Perfect was the second enterprise approved by the Chinese government to market directly to consumers, through more than 7,000 outlets in China. Since the partnership between HaloSource and Perfect was first announced in April 2012, both companies have worked together to developand sell the JWL brand water purifier, a multi-stage pressurized water purification device, selling more than 700,000 devices and over 1,000,000 cartridges in the first four years since launching in 2013.

In order to maintain exclusivity to HaloSource's best-in-class HaloPure® disinfection technology, for pressurized devices in the direct-selling channel only, the new agreement with Perfect requires minimum volume commitments of 800,000 cartridges (150,000, 350,000, and 300,000 cartridges during the three years, respectively). Additionally, the companies have committed to work more closely together on marketing and education efforts for the JWL device and cartridge replacements through Perfect's sales rallies, along with collaboration on future devices containing HaloPure® technology.

James Thompson, Chief Executive Officer of HaloSource commented:

'We are delighted to announce the extension of our partnership with Perfect, a global leader in consumer product sales in China. We have worked with Perfect over the past five years to launch their JWL, a class-leading water purifier with a current installed base of over 700,000 units each needing annual replacements. Together our two companies have focused on cartridge replacement awareness and designing the next generation JWL. We believe we have made significant progress on both fronts recently.

Having a partner of Perfect's calibre is a reflection of the high quality of the technologies we have to offer to our partner companies. Whether it be disinfection media or heavy metal removal, HaloSource has one-of-a-kind offerings with the highest of regulatory approvals.'

Kan Kian Cheong, General Manager of Perfect Water Manufacturing Co commented:

'We have worked with the HaloSource team for the past five years to power our JWL line of water purifiers. It is critical that our customers know that Perfect products are the best-in-class, powered by world-class performance, and we at Perfect view HaloSource, as our key water innovation partner.'

Market Abuse Regulation

The information communicated in this Announcement is inside information for the purposes of Article 7 of Market Abuse Regulation 596/2014 ('MAR'). For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of the Company by Craig Crowell, Chief Financial Officer.

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About HaloSource

HaloSource, Inc. innovates and integrates technologies to deliver clean drinking water solutions to partners with trusted brands around the world. The Company works with scientists and industry experts across the globe in search of new ways to improve drinking water quality and has been awarded more than 30 patents for its ground-breaking chemistries, which provide safe drinking water for more than 10 million consumers globally. The Company's class-leading HaloPure® Drinking Water technology has the highest global certifications, including registration with the US EPA.

Founded in Seattle, Washington, HaloSource has grown to become an influential leader in drinking water purification. HaloSource is headquartered in the US with operations in China and in India. Learn more about the Company's research and development and future cutting edge technologies by visiting www.halosource.com.

The HaloPure® and astrea® brands are registered trademarks of HaloSource, Inc. All other trademarks, brand names or product names belong to their respective holders.

About Perfect

Perfect was the second enterprise approved by the Chinese government to market directly to consumers. With more than 10,000 outlets and over 1 million sales reps in China with annual sales revenue of more than 3 billion US, they were the second largest direct selling company in China in 2016.

This document contains certain forward-looking statements relating to the Company. The Company considers any statements that are not historical facts as 'forward-looking statements'. They relate to events and trends that are subject to risk and uncertainty that may cause actual results and the financial performance of the Company to differ materially from those contained in any forward-looking statement. These statements are made by management in good faith based on information available to them and such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.