Planning Application Submitted

Modern Water plc

("the Company" or "the Group")

Planning application submitted for Gibraltar Wastewater Treatment Plant

Modern Water plc (AIM:MWG), the owner of leading technologies for water and wastewater treatment and the monitoring of water quality, is pleased to announce that today, H.M Government of Gibraltar has submitted an application for planning permission to build Gibraltar's first wastewater treatment plant. Modern Water Services Ltd ("Modern Water") carried out the preparatory works necessary for today's submission to the government's Department of Town Planning, collaborating with its joint venture partner NWG Commercial Services Ltd ("Northumbrian Water").

The preparatory works included the design and survey work and the Environmental Impact Assessment required for full planning and environmental approvals as well as preliminary site works. Obtaining planning permission marks the final step before the joint venture enters into an agreement with H.M. Government of Gibraltar whereupon work can commence on the overall project. Modern Water will be carrying out the design and build works on behalf of the joint venture, the cost of which is estimated in the planning application at £25m.

As previously announced, following a formal tender process, the joint venture between Modern Water and Northumbrian Water was appointed preferred bidder for the project in October 2014. Modern Water is responsible for the design and build portion of the contract. On completion, Northumbrian Water will be responsible for the operation and maintenance of the plant for 20 years. As Gibraltar has the second highest population density in Europe and limited land availability the plant design will have a small footprint and low power requirements as electricity is at a premium in Gibraltar.

Simon Humphrey, Modern Water's CEO, said: "This step marks the completion of our advance works contract. Together with our partners at Northumbrian Water, we continue to work closely with the Government of Gibraltar to finalise the main Design, Build and Operate contract."

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Modern Water is a pioneering and innovative technology company, specialising in membrane water treatment solutions and advanced monitoring products. The company works for customers in a range of industries across the globe and owns proprietary technologies for use in a diverse range of applications. Modern Water's Monitoring Division has a portfolio of world-leading toxicity and trace metal monitoring products, some of which constitute the regulatory standard. The headline technology of the Company's Membrane Division, called "AMBC", can be used to tackle complex wastewater treatment problems at a reduced cost compared to standard processes, while being simple to operate.

www.modernwater.com