Approval of Chinese Ministry of Health

HALOSOURCE TECHNOLOGY FURTHER VALIDATED IN PRODUCT APPROVAL BY

CHINESE MINISTRY OF HEALTH

HaloSource, Inc. (HALO.LN, HAL.LN) the clean water technology company, is delighted to announce that the Chinese Ministry of Health (MOH) has approved the Perfect multi-stage water purifier. Earlier this year, HaloSource announced its new partnership and supply agreement with Perfect Water Purification Manufacturing Co. Ltd, a leading global supplier of consumer goods in China.

Through extended research and development, Perfect has chosen HaloSource's HaloPure® media as the key enabling technology in its very first water purifier launched in China. A cartridge containing HaloPure media is used as one stage of water purification in Perfect's multi-stage water purifier and provides a 99.9% reduction of water-borne bacteria and viruses.

Under the terms of the supply agreement, Perfect holds the exclusive right to sell pressurized water purification devices powered by HaloPure technology through its direct sales channels in China.

Martin Coles, CEO of HaloSource commented, "HaloPure was the first water purification technology to be approved under a rigorous standard developed by China's Ministry of Health in April 2011 and we are delighted that the collaboration with Perfect has resulted in another approval. This serves to validate further the potential of our proprietary HaloPure media and continues our strategy to build partnerships with leading companies that are able to deploy products which leverage our technology."

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About HaloSource

HaloSource (halosource.com) is a global clean water technology company headquartered in Bothell, Washington, U.S.A. We design solutions to protect people, preserve the planet and celebrate our most valuable resource-water that is safer, cleaner and more accessible for people everywhere.

HaloSource is committed to relentless innovation, industry-leading products and ongoing support for water-related philanthropy. Our proprietary technologies for drinking and recreational water, textile coatings, and environmentally friendly wastewater recycling, enable our partners to rid the world's water of impurities and return it responsibly to the earth.

HaloSource Technologies that Protect Water and Textiles:

• HaloPure® media is the most flexible, price-competitive disinfection solution for clean drinking water in the industry. In 2009, it became the first drinking water technology in 30 years to be registered by the United States Environmental Protection Agency (USEPA), widely recognized as having the world's most stringent performance requirements for water purification. In 2010, HaloPure media was approved by China's Ministry of Health (MOH) and recognized for meeting the world's most stringent water purification requirements, a key differentiator for our multi-national partners. In Brazil, the use of HaloPure media has met or exceeded all appropriate standards of the National Institute of Metrology, Standardization and Industrial Quality (INMETRO).

• SeaKlear® Pool and Spa treatment products bring both natural biopolymers 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.

HaloSource Technologies that Preserve the Environment:

• HaloKlear® products use natural biopolymers providing industrial water clarification with dramatic reductions in ecological impact.

HaloSource Celebrates Clean Water:

• HaloSource supports organizations dedicated to sustainable clean water projects. Earlier this year, we were proud to be a presenting sponsor in the 2012 Carry5 awareness and fundraising event benefiting Water 1st International.

HaloKlear, HaloPure, SeaKlear and HaloShield are registered trademarks of HaloSource, Inc. All other trademarks, brand names or product names belong to their respective holders.

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