MODERN WATER SIGNS CHINA DISTRIBUTION AGREEMENT

29 October 2013

Modern Water plc

("Modern Water" or "the Group")

MODERN WATER SIGNS EXCLUSIVE DISTRIBUTION AGREEMENT FOR CHINA

Modern Water plc (AIM:MWG), the owner of leading water technologies for the production of fresh water and monitoring of water quality, has recently signed an exclusive distribution agreement with Beijing Green Science and Technology (Beijing Green) which will cover mainland China, Hong Kong and Macau.

Beijing Green has been one of Modern Water's key distribution partners for almost ten years and both companies have mutually agreed that the commercial interests of both parties are now best served by a fully exclusive agreement. The agreement will maximize sales opportunities throughout the current Chinese five year plan as well as successfully position Modern Water's products during the crucial planning stages of the next Chinese five year plan.

The agreement commences with immediate effect and will see Beijing Green  solely responsible for distributing all Modern Water trace/ heavy metal and toxicity monitoring products, including the widely acclaimed online and portable heavy metal monitoring system (OVA and PDV), and the industry's gold-standard in toxicity monitoring, the Microtox M500 and Deltatox.

Dr Chen, President of Beijing Green, said: "We are pleased that Modern Water has chosen Beijing Green to exclusively distribute its monitoring products. This contract demonstrates our confidence in the quality of Modern Water's monitoring equipment and our commitment to the sale of those products."

Simon Humphrey, Modern Water CEO, added: "China continues to be a key market for both our Monitoring and Membrane Processes divisions. Having worked with Beijing Green for many years we strongly believe that this agreement gives Beijing Green the potential to maximise sales of our monitoring products across China."

Ends

Notes to editors

Modern Water owns, installs and operates world-leading membrane technology and develops and supplies advanced systems for water monitoring. Its shares trade on the Alternative Investment Market of the London Stock Exchange.

Modern Water's patented forward osmosis (FO) technology's benefits include lower energy consumption and lessen environmental impact in a variety of industries. With a sales presence in almost 60 countries, the Group's Monitoring Division includes a leading real-time continuous toxicity monitor and trace metal analysers for monitoring the quality of drinking water.

www.modernwater.com