Halosource signs agreement with Bajaj

4th May 2011

HaloSource Signs its first HALOPURE® DEVICE supply

agreement with bajaj

Seattle, U.S.A. - HaloSource, Inc. ("HaloSource" or "the Company") (HAL.LN, HALO.LN) the clean water and antimicrobial technology company, today announces that it has signed an exclusive supply agreement with Bajaj Electricals Ltd, India's largest home appliance products company, for the supply and distribution in India of an OEM gravity water purifier powered by HaloPure® disinfection technology.

This is HaloSource's first agreement for a finished device, marking the company's move up the value chain, and is the second supply agreement it has signed with Bajaj since announcement of the relationship last year. The agreement covers the supply of HaloSource's HaloPure® Waterbird gravity water purifier which will be branded the Bajaj XTP 21 and XTP 21 DX and also covers the supply of replacement cartridges for these devices.

Bajaj plans to launch the products later this month and move immediately into distribution and retail in select areas, followed by additional market rollouts throughout India where the company has more than 300,000 retail outlets. First year sales of the product are expected to exceed 200,000 units with replacement cartridges typically being required every six months. HaloSource also continues to supply Bajaj with HaloPure® disinfection cartridges for their XTP-11 water purifier.

Shekhar Bajaj, Chairman and Managing Director of Bajaj Electricals Ltd, stated: "We are excited to launch the Bajaj XTP 21 products, the latest HaloPure® powered solutions in our product portfolio. Access to high quality drinking water is a huge challenge for the Indian population which, as well as serving an important social mission, offers us a significant market opportunity." 

John Kaestle, Chief Executive of HaloSource, commented: "We are very pleased to be extending our partnership with Bajaj Electricals, a major player in the Indian market and a trusted consumer brand. The launch of these devices marks HaloSource's move into the finished devices arena and reinforces Bajaj's commitment to providing its customers with outstanding solutions. Affordable, highly effective drinking water purifiers that combine outstanding design and user-friendly features with reliability are hard to find. Together with Bajaj, we will deliver affordable clean water to Indian consumers with this new product line." 

The HaloPure® powered Bajaj XTP 21 and ultra high performance XTP 21DX water purifiers were designed after extensive research into the needs of Indian households and offer a streamlined, futuristic design that is easy to maintain and simple to operate. The Touch-Lock™ technology in the purification cartridge makes it easy to replace and the patented HaloPure® powered, multi-stage disinfection cartridge includes a convenient end-of-life monitor with auto shutoff to ensure the freshest, safest water is available on tap.

ENDS

About HaloSource

HaloSource is a clean water technology company, headquartered in Seattle, US with operations in India and China. It is focused on the provision of cleaner, clearer and safer water using its proprietary N-halamine bead technology to clean and purify water, killing bacteria and viruses that may cause disease.

HaloPure provides safer drinking water. In 2009, it became the first new drinking water technology in 30 years to be granted both Manufacture-For-Use and Device registrations by the United States Environmental Protection Agency (USEPA), which is widely recognized as having the world's most stringent performance requirements for water purification. HaloPure® is a unique contact biocide technology that is proven to attack and kill a wide range of harmful micro-organisms and is approved for long-term use in a variety of markets, including the United States.

SeaKlear and StormKlear products use a second technology based on natural bio-polymers to provide water clarification and antimicrobial applications for treating recreational and environmental water; and HaloShield facilitates the binding of chlorine-based bleach to textiles such as sheets, lab coats and towels. www.halosource.com

About HaloSource's Markets

HaloPure products are principally targeted at consumers in emerging market countries, where access to safe drinking water is particularly poor. In an independent analysis of the global Point of Use drinking water device market carried out in 2005, Frost and Sullivan concluded that:

·; the market for residential water treatment equipment in China was estimated at $960 million in 2005, growing at an annual rate of 20.4 per cent between 2004 and 2011;

·; the market for residential drinking water devices in India was estimated at $425 million in 2009, and experiencing growth of approximately 25 per cent annually; and

·; in 2005 the global markets for filtration formats in the form of under-the-sink, counter top and replacement cartridges were growing annually at 20 per cent, 21 per cent and 18 per cent, respectively.

The World Health Organisation has estimated that 1.1 billion people lack access to safe drinking water and the Centre for Disease Control is recommending Point Of Use filtration and disinfection.

ABOUT BAJAJ ELECTRICALS LTD:

Bajaj Electricals Limited (BEL), a 71 year old trusted company with a turnover in 2009 of over Rs. 2252 crores, is part of the US $ 5.5 billion (Rs 28,000 crores) "Bajaj Group". Bajaj Electricals Limited has six strategic business units - Engineering and Projects, Appliances, Fans, Luminaires, Lighting and Morphy Richards.

Bajaj Electricals has 19 branch offices across India supported by a chain of about 600 distributors, 3000 authorized dealers, more than 300,000 retail outlets and over 230 Customer Care centers.

Bajaj Electricals has distribution arrangements with Trilux Lenze of Germany (for Luminaires), a tie-up with Delta Controls of Canada (for Building Management Systems) and Securiton of Switzerland (for security systems), Morphy Richards of UK (for Appliances), Disney of USA & Midea of China (for Fans). The company has also invested in Starlite Lighting for manufacture of energy saving lamps (CFL). For more information please visit www.bajajelectricals.com