Memorandum of Understanding

    RNS Number : 8049C
  Bluewater Bio International
  05 September 2008
   

    Bluewater Bio International

    Signing Memorandum of Understanding with Vodny 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 Vodny 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."  

    Enquiries:

 Bluewater Bio International                    Tel: [phone]
 Daniel Ishag, CEO

 Citigate Dewe Rogerson (PR advisor)            Tel: [phone]
 Tom Baldock /Lindsay Noton 

 Strand Partners Limited (Nominated Adviser)    Tel: [phone] 
 James Harris/Angela Peace


    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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