HALOSOURCE WINS CONTRACT WITH MORF INDIA

FOR IMMEDIATE RELEASE

1 October 2013

HALOSOURCE, INC.

("HaloSource" or "the Company")

HALOSOURCE WINS CONTRACT WITH MORF INDIA

BOTHELL, WASHINGTON, U.S.A. - HaloSource, Inc. (HAL.LN, HALO.LN), the clean water technology company trading on London's AIM, and water engineering company Morf India Limited have announced their plans to expand their drinking water purification offerings to consumers in India and Sri Lanka through the Kelvinator brand. The supply agreement represents more than US$500,000 of revenue for HaloSource over the next twelve months.

In 2012, Morf entered into a brand licensing agreement with US$15 billion Swedish appliances major Electrolux Home Products Inc to market the Kelvinator range of water and air purifiers in India and Sri Lanka. Morf has been utilising HaloPure in-line bacteriostatic cartridges for its RO water purifiers for the past two years, and in order to serve a broader market, the company will launch a portable pitcher incorporating HaloPure technology before the year's end.

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HaloSource +1.425.974.1930

Martin Coles, Chief Executive Officer

James Thompson, Chief Financial Officer

Kate Bovey, Senior Director Public Affairs

Morf India

MV Praveen, Managing Director +91 44 4545 6666

L Srinivasan, Senior Manager, HO +91 90 9403 8562

Buchanan +44 207 466 5000

Charles Ryland, Partner

Clare Akhurst, Account Executive

Liberum Capital (NOMAD) +44 203 100 2222

Richard Bootle

About HaloSource

HaloSource is a global company headquartered in Seattle, Washington U.S.A. that develops technologies to disinfect and purify the water we drink, play in and return to the environment.

· HaloPure® media became the first drinking water technology in 30 years to be registered by the United States Environmental Protection Agency ("USEPA"). In 2010, HaloPure® media was approved by China's Ministry of Health ("MOH") and widely recognised as the world's most stringent performance requirements for water purification, a key differentiator for our multi-national partners.

· SeaKlear® Pool and Hot Tub treatment products bring both natural biopolymers and antimicrobial applications for treating recreational water.

· HaloKlear™ products employ natural biopolymers to provide water clarification on an industrial scale with dramatic reductions in ecological impact.

· 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.

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

halosource.com

About MORF INDIA

Started in 1998, MORF is a water engineering company executing large and customised water and sewage treatment plants. MORF also has a consumer product division selling a wide gamut of water purifiers / treatment plants to the residential segment.

MORF is an ISO-certified and credit-rated public limited company. Headquartered in Chennai-India, MORF has full-fledged branches in Chennai, Bangalore, Hyderabad and authorised dealers / channel partners in the Tier II and Tier III cities of Southern India. MORF plans to establish a pan India footprint by March 2014.

MORF is the recipient of several prestigious awards such as UNESCO-Water Digest Award for the years 2010, 2011 and 2012, Aqua Excellence Award 2011 and 2012, Best OEM Award from Pentair in 2009. MORF is a corporate member in CII, WQA and Indian Water Works Association.

MORF has executed around 750 treatment projects of various sizes and has close to 20,000 domestic customers across South India. Presently, MORF has approximately 200 employees.

morfindia.com / kelvinatorpurifiers.in