Placing & Total Voting Rights

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.

Modern Water plc

("Modern Water", "the Company" or "the Group")

Placing & Total Voting Rights

Placing

Modern Water plc, the owner of world-leading technologies for water and wastewater treatment and for water quality monitoring, has successfully completed a placing of ordinary shares.

A total of 11,335,746 new ordinary shares of 0.25 pence each, representing the maximum allotment available of the Company's remaining existing shareholder authority to issue new ordinary shares for cash, have been placed by Turner Pope Investments (TPI) Ltd, the Company's broker, at a price of 1.25 pence per share. The Placing has raised approximately £141,696 (before expenses) for the Company. As at today's date, the Company has no further shareholder issuance authority. The net funds will be applied to building the sales pipeline for the innovative membrane process systems and for working capital purposes.

Application will be made to the London Stock Exchange for admission to trading of 11,335,746 new ordinary shares on AIM ("Admission"). It is expected that Admission will take place and dealings on AIM will commence at 8:00 a.m. on or around 6 September 2019 (at which time the placing will become unconditional).

The new ordinary shares will, when issued, be credited as fully paid and will rank pari passu in all respects with the existing ordinary shares in the capital of the Company, including the right to receive all dividends or other distributions made, paid or declared in respect of such shares after the date of issue of the new ordinary shares.

Total voting rights

Modern Water's enlarged issued ordinary share capital immediately following Admission will be 124,693,214 ordinary shares with voting rights attached. The Company has no shares in treasury; therefore the total number of voting rights in Modern Water is 124,693,214. This figure may be used by shareholders as the denominator for the calculations by which they will determine whether they are required to notify an interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Simon Humphrey, the Company's CEO, commented: "We are delighted to receive additional support from investors introduced by Turner Pope Investments (TPI) Ltd."

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The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

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Caution regarding forward looking statements

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.