HaloSource Establishes Brazilian Subsidiary

SEATTLE, May 31, 2011 -

HaloSource, Inc. ("HaloSource" or "the Company") (HAL.LN, HALO.LN) the
clean water and antimicrobial technology company, today announces that it has
established HaloSource Water Purification Importações Ltda, a wholly owned
Brazilian subsidiary of the Company to manufacture, import and distribute its
HaloPure(R) powered components, cartridges and devices for partners in
Brazil.

The Company has also appointed Luiz Cintra as Managing Director of its
Brazilian subsidiary. A Brazilian native, Luiz has particular knowledge of
the market and has previously worked with the Chief Executive of HaloSource,
John Kaestle.

The opportunity for HaloSource in Brazil is sizeable. The Latin American
market household water purification was estimated at $400m, growing at an
annual rate of 15 per cent, according to research published by Frost &
Sullivan in 2005.

John Kaestle, Chief Executive of HaloSource, commented: "The
establishment of HaloSource Water Purification Importações Ltda enables us to
work much more efficiently with our increasing number of Brazilian partners
to supply the growing consumer market with water purification products. Luiz
Cintra is a former colleague of mine and I am delighted that he has agreed to
lead the charge for us in Brazil. We can now look forward to supplying the
domestic market with pure water at point-of-use."

In 2009, HaloPure(R) became the first new drinking water technology in 30
years to be granted both Manufacture-For-Use and Device registrations by the
United States Environmental Protection Agency (USEPA), widely recognized as
having the world's most stringent performance requirements for water
purification. In 2011, China's Ministry of Health issued formal approval of
HaloPure(R) (2011-0064) under a new process developed to ensure the safety
and efficacy of new technologies employed in products that impact human
health. HaloPure(R) is the first new drinking water purification technology
to be approved under these standards. In Brazil, the Company expects that
HaloPure(R) products will meet or exceed all appropriate standards of the
National Institute of Metrology, Standardization and Industrial Quality
(INMETRO).

HaloPure(R) is a unique contact biocide technology that is proven to
attack and kill a wide range of harmful microorganisms and is approved for
long-term use in a variety of markets, including the United States.

Notes to Editors

About HaloSource

HaloSource is a clean water technology company, headquartered
in Seattle, US with operations in India and China. It is focused on the
provision of cleaner, clearer and safer water using its proprietary
N-halamine bead technology to clean and purify water, killing bacteria and
viruses that may cause disease.

HaloPure provides safer drinking water. In 2009, it became the
first new drinking water technology in 30 years to be granted both
Manufacture-For-Use and Device registrations by the United States
Environmental Protection Agency (USEPA), which is widely recognized as having
the world's most stringent performance requirements for water purification.
HaloPure(R) is a unique contact biocide technology that is proven to attack
and kill a wide range of harmful micro-organisms and is approved for
long-term use in a variety of markets, including the United States.

SeaKlear and StormKlear products use a second technology based
on natural bio-polymers to provide water clarification and antimicrobial
applications for treating recreational and environmental water; and
HaloShield facilitates the binding of chlorine-based bleach to textiles such
as sheets, lab coats and towels. www.halosource.com

About HaloSource's Markets

HaloPure products are principally targeted at consumers in
emerging market countries, where access to safe drinking water is
particularly poor. In an independent analysis of the global Point of Use
drinking water device market carried out in 2005, Frost and Sullivan
concluded that:

- the market for residential water treatment equipment in
China was estimated at $960 million in 2005, growing at an annual rate of
20.4 per cent between 2004 and 2011;

- the market for residential drinking water devices in India
was estimated at $425 million in 2009, and experiencing growth of
approximately 25 per cent annually; and

- in 2005 the global markets for filtration formats in the
form of under-the-sink, counter top and replacement cartridges were growing
annually at 20 per cent, 21 per cent and 18 per cent, respectively.

The World Health Organisation has estimated that 1.1 billion
people lack access to safe drinking water and the Centre for Disease Control
is recommending Point Of Use filtration and disinfection.

Biography of Luiz Cintra

Luiz Cintra is the Managing Director of the HaloSource subsidiary Water
Purification Importações Ltda in Brazil.

From 1978 to 1993, he served as General Manager for the Electrical
Conductors Division of Alcan Aluminio do Brasil S.A., a subsidiary of
Aluminum Company of Canada Ltd. In 1993, he was appointed General Manager of
Momentive Specialty Chemicals in Brazil and became Vice President, Latin
America in 1996. In 2009, Luiz became Superintendent Director of MD Papeis
Ltda., a producer of specialty papers for a broad range of applications.

Luiz has held several industry council positions, including President of
ABRAF, the Formaldehyde Council of Brazil. He is a graduate of the University
of Sao Paulo, where he earned his mechanical engineering degree and
post-graduate qualifications in production engineering. He also holds a PMD
from Harvard University.

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    FO & Executive Director
    +1-425-974-1993

    Andrew Clews, VP
    Marketing and Product Development
    +1-425-974-1991

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