HaloSource supply agreement with Bajaj

HaloSource Signs initial 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 the signing of an exclusive water disinfecting cartridge supply agreement with Bajaj Electricals Ltd, the Indian home appliance products company.

This agreement is the first specific supply agreement the Company has entered into with Bajaj since announcement of the relationship earlier this year. The agreement with Bajaj Electricals covers supply of HaloSource's HaloPure® cartridge for use in a new Bajaj device and for the supply of replacement cartridges for these devices. Initial product launch is expected to take place on December 21st with products immediately moving into distribution and retail in select areas, followed by additional market rollouts throughout India. The Company has already supplied Bajaj with 5000 cartridges to support the initial launch and is manufacturing and supplying cartridges in commercial quantities to support sales as they increase. First year sales of this product are expected to exceed 250,000 units with replacement cartridges typically being required 6 months after the customer's first HaloPure cartridge purchase.

The inclusion of HaloSource's HaloPure disinfecting cartridge will enable this new Bajaj product to remove 99.9% of disease-causing bacteria and viruses present in source water, creating a unit that delivers a high level of water purification without the need for electricity or water pressure. The first of Bajaj's new HaloPure® powered products is ideally suited to the Indian market.

John Kaestle, Chief Executive of HaloSource, commented: "We are delighted to be partnering with Bajaj Electricals, a major player in the Indian market and a trusted consumer brand with over 300,000 retail outlets. This initial product launch, utilizing the HaloPure® cartridge, reinforces Bajaj's commitment to providing its customers with outstanding solutions. The new product will provide affordable, highly effective drinking water disinfection to millions of new customers in place of existing products which require access to electricity. It's an exciting first step for both companies. We look forward to partnering with Bajaj on other water products in the future."

Pradeep Tandon, Executive President, Appliances Division of Bajaj Electricals stated: "We are excited to launch our first HaloPure® powered product in order to provide our customers with a simple but effective method of bacteria and virus removal for their drinking water. Access to good quality potable water is a huge challenge for the Indian population which, as well as serving an important social mission, offers us a significant market opportunity."

 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 and Nardi of Italy (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.bajajeshop.com