HaloSource Receives HaloPure(R) Approval From Chinese Ministry of Health

SEATTLE, May 10, 2011 - HaloSource, Inc. ("HaloSource" or "the Company") (HAL.LN, HALO.LN) the
clean water and antimicrobial technology company, today announces that it has
received formal approval from the Chinese Ministry of Health for its
HaloPure(R) drinking water purification technology for use in China.

China's Ministry of Health has issued the formal approval 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.

HaloSource Water Purification Technology (Shanghai) Co. Ltd.
the company's wholly owned subsidiary in China, will begin the supply of
HaloPure(R) powered components, cartridges and complete devices to a variety
of China based partners following this approval. Imported products containing
HaloPure(R) disinfection technology may also now be registered for sale in
China.

The drinking water purification market in China is estimated by research
group Frost & Sullivan to be worth more than $2.5 billion annually and is
growing at more than 20% CAGR.

HaloSource has operated from its Shanghai, China facility since 2009,
developing local channel and distribution relationships along with the
manufacture of HaloPure(R) products for export. Further underscoring
HaloSource's commitment to the China market, the company also recently
completed ISO9001:2008 accreditation of its Shanghai facility by NSF
International.

Commenting on the accreditation, Eric Robinson, Executive VP Operations
and Chairman HaloSource Water Purification Technology (Shanghai) Co. Ltd.
said: "HaloSource has always had structured and robust quality management
systems as our world class partners demand the highest level of discipline
and rigor in our manufacturing processes. Certification by NSF of our
Shanghai facility to the ISO9001:2008 standard further validates our quality
processes in support of the needs of our global customers and reflects
the hard work of our China Managing Director Joseph Chen and his team".

John Kaestle, Chief Executive of HaloSource, commented: "HaloSource can
now start to benefit from the enormous market opportunity to assist in
providing safe, affordable, drinking water at the point of use to hundreds
of millions of Chinese consumers. Becoming the first new drinking water
purification technology approved by the Chinese Ministry of Health since
the establishment of new standards is another banner achievement for
HaloPure(R), and is a key milestone for HaloSource in its
first year as a public company".

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. 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.

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    +1-425-974-1991

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