Directorate Change

AIM share code: MWG

20 February 2020

Modern Water plc

("Modern Water" or "Company")

Directorate Change

Further to the Company's announcement on 24 January 2020 and following the completion of the Placing, the Company is pleased to confirm the appointment of Dr Nigel Burton to the Board of Modern Water as a non-executive director. The Company expects to appoint Gerard Brandon as non-executive director and Chairman of the Board shortly and a further announcement will be made in due course. Piers Clark and Mike Townend, non-executive chairman and non-executive director, respectively, have resigned from the Board.

Simon Humphrey, Chief Executive Officer, commented:

"We thank our investors for their investment. Their support demonstrates confidence in a revenue-sharing collaborative and partnership strategy to accelerate the growth of our water recovery technologies to counter water crisis problems arising from climate change and a growing global population. Over the last 14 years, Modern Water has invested substantial resources to create a patent portfolio of cutting-edge technology, focused on monitoring of contaminated water and decontamination of wastewater, making recycling of water more efficient. The Company is grateful for the contribution that both Piers and Mike have made to establish the strength of our technology. The new Board brings a commercial focus with extensive expertise in sales and marketing and provides immediate access to distribution channels in the chemical, biofuel, wastewater, dairy and agricultural production industries."

Board appointment

The appointment of Dr Nigel Burton as Non-Executive Director of the Company is for an initial period of 12 months, and thereafter is terminable by either party on not less than 3 months' written notice. The Director's fee is £30,000 per annum but will not be settled in cash. Instead, Dr Burton will have his accrued fee settled by the allotment to him of New Ordinary Shares, which will be issued at the Placing Price of 0.5p per New Ordinary Share for the first two years of his appointment.

Dr Nigel John Burton (Age: 61)

Following over 14 years as an investment banker at leading City institutions including UBS Warburg and Deutsche Bank, including as the Managing Director responsible for the energy and utilities industries, Nigel spent 15 years as Chief Financial Officer or Chief Executive Officer of a number of private and public companies. Nigel is currently a Non-Executive Director of AIM quoted companies Remote Monitored Systems plc, Digitalbox plc, Regency Mines plc, eEnergy Group plc and Mobile Streams plc.

Dr Nigel Burton is interested in 4,300,000 ordinary shares, representing 0.86% of the Company's issued share capital.

Pursuant to Rule 17 and Schedule 2(g) of the AIM Rules for Companies, the following information is disclosed in respect of Dr Burton:

 Current and Past Directorships and Partnerships within the last 5 years

Dr Burton was a director of Pease Limited within 12 months of the company appointing a liquidator in June 1998. The company was subsequently liquidated in 2002.

Save for the information above, there are no further disclosures to be made in accordance with Rule 17, Schedule 2(g) of the AIM Rules for Companies in respect of the appointment Dr Nigel Burton.

Capitalised terms used but not defined in this announcement have the meaning given to them in the conditional placing, board changes and notice of general meeting announcement dated 24 January 2020.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

For further information:

About Modern Water

Modern Water was established in 2006 to develop and commercialise water recovery technologies to counter water crisis problems arising from climate change and a growing global population. Having invested £20m over the last 14 years, the results comprise a robust patent portfolio of cutting-edge technology, focused on monitoring of contaminated water and decontamination of wastewater, making recycling of water more efficient. Six countries across the world have legislated that Modern Water monitoring test systems are written into their environmental protection legislation.