Trading Update for the Year Ended 31 December 2018

Modern Water plc

("Modern Water" or "the Group")

Trading Update for the year ended 31 December 2018

Modern Water plc (AIM: MWG), the owner of leading technologies for water and wastewater treatment and for the monitoring of water quality, announces that its loss before tax for the year ended 31 December 2018 is expected to be slightly greater than market expectations. A strong performance from the Monitoring Division was offset by a lower than forecast performance from the Membrane Division.

The loss before tax is expected to be significantly lower than the comparative figure for 2017, with increased revenue in both its Monitoring and Membrane divisions. The board remains very confident that both sides of the business will continue to grow in the coming year, boosted by new sales initiatives including the Company's partnership with Hangzhou Shangtuo, which is also one of its largest shareholders.

The Company anticipates releasing its 2018 Preliminary Results by no later than 31 March 2019.

Simon Humphrey, CEO, said: "The Group is also currently awaiting final approvals from the planning authorities in Gibraltar for a wastewater treatment plant and a positive outcome here would unlock considerable value for Modern Water shareholders. We look forward to updating shareholders in due course."

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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.