Water Supply Turned on at Oman Desalination Plant

22 March 2010

Modern Water plc

("Modern Water" or the "Company")

PAEW Chairman Turns On Water Supply At Pioneering

Al Khaluf Desalination Plant

Modern Water plc (LSE: MWG), the owner of leading water technologies, is delighted to announce the achievement of an important milestone this week when His Excellency Mohammed Al Mahrouqi, the Chairman of the Public Authority for Electricity and Water (the "PAEW") in Oman visited a new desalination plant in the village of Al Khaluf this week.

The PAEW has been providing water to remote areas in the Sultanate for a number of years through the use of traditional reverse osmosis technology and is committed to improving the reliability and quality of its service for its customers despite the challenging conditions.

The plant in Al Khaluf is the first plant in the Middle East that uses a new process called Manipulated Osmosis ("MO") developed by Modern Water. The technology provides high quality drinking water in an area where the seawater provides a difficult challenge for the more traditional reverse osmosis process. The technology reduces operating costs and provides a more environmentally friendly alternative to traditional desalination by significantly reducing energy and chemical consumption.

The MO process has proved to be much more robust than traditional processes and produces higher quality water at a lower cost.

His Excellency Mohammed Al Mahrouqi said: "This is an exciting step for the PAEW in being able to bring Modern Water's new technology into Oman and shows that we are committed to participate actively with the industry to provide improved solutions."

Commenting on the visit of the plant, Executive Chairman of Modern Water, Mr. Neil McDougall said "We are very grateful for the support given by PAEW in bringing our groundbreaking technology into the region and we look forward to working on other projects with the PAEW."

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