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Pionetics Begins Distribution of Consumer Water Treatment System in China

September 26, 2006

AMSTERDAM, Netherlands, Sept. 26/PRNewswire/—Pionetics®, a developer of drinking water treatment products, today announced that its patented LINX Drinking Water treatment technology is now commercially available in China through its joint venture with Elantec®, a Beijing-based manufacturer and distributor of consumer and industrial water treatment equipment. Elantec®, will market the product to consumers throughout China under its eLINX brand name.

eLINX wastes one-tenth the water of traditional reverse osmosis systems, requires no chemicals, works well under conditions of low water pressure, and the company says it is ideal for the Chinese market where clean water is a rare and expensive commodity. Elantec, projects that it will sell up to 40,000 eLINX units the first year and well over 100,000 in the next. With about 20% of the market, Elantec, is the leading manufacturer and distributor of point of use water treatment systems in China, selling its products through over 8,000 dealers throughout the country.

“The eLINX product launch in China is a very important first step in a broader plan to commercialize our water treatment technology and distribute our products internationally,” said Dr. Gordon Mitchard, Pionetics’ CEO. “We are proud to be working with a prestigious partner like Elantec®, which has well-established sales channels and a stellar reputation in China, one of the world’s largest consumer markets.”

The eLINX Drinking Water System uses Pionetics’ patented electrically regenerated ion exchange technology to deliver better tasting water more efficiently and at a lower cost than traditional reverse osmosis (RO) technology. Rather than requiring the use of harmful chemicals, such as hydrochloric acid or sodium hydroxide. eLINX uses electrically powered ion exchange to remove impurities, including perchlorate, nitrites, nitrates, arsenic III and V, and potassium, along with 90 percent of total dissolved solids.

“Chinese consumers are seeking a reliable and efficient water treatment system to deliver clean drinking water to their families because water purity is a challenge,” said Daniel Wang, CEO of Elantec®. “We are excited to be able to market Pionetics’ unique LINX water treatment technology. It is kind to the environment because it conserves water by limiting the amount of wastewater and does not produce any harmful chemicals.”

Because Pionetics’ de-ionization process is so efficient, the compact eLINX device works well under low water pressure and does not require a booster pump. The product is able to deliver at least 10 times the flow rate compared to other systems, which eliminates the need for a bulky under-sink storage tank that takes up a lot of space and provides a breeding ground for water-borne bacteria. Moreover, eLINX eliminates more hazardous chemicals, such as arsenic, than RO systems.

Maintenance of the eLINX Drinking Water System is more straightforward as well. With two easy-to-replace cartridges, the product can supply the average kitchen with high quality treated water for a year or more.

About Pionetics
Pionetics® develops and manufactures innovative water treatment products that improve water quality for residential, commercial and industrial applications. Pionetics’ unique, patented, electrically regenerated ion exchange (LINX®) technology utilizes clean, efficient electricity to selectively remove priority pollutants, such as arsenic III and V, nitrate, chromate and other harmful chemical ions, and softens water without the addition of salt. Approximately half the size of traditional reverse osmosis water treatment devices, Pionetics’ water efficient technology wastes one-tenth the water and eliminates the need for hazardous chemicals.

Based in San Carlos, California, Pionetics is privately owned and financially backed by EPCOR Water Services, Firelake Strategic Technology Fund, LP, NGEN Partners, Pangaea Ventures Fund, RockPort Capital Partners, Topspin Partners, and Unilever Technology Ventures Fund BV. For more information, please visit: www.pionetics.com

About Elantec
Elantec®, with its new 120,000-square foot state-of-the-art facility located at the Beijing Science and Technology Zone, is a leading manufacturer and distributor of point of use (POU) water treatment equipment for consumer and industrial markets in China with over 8,000 dealers across China., Elantec®, commands about 20 percent of the consumer RO POU market. Elantec®, is privately owned by Daniel Wang and is headquartered in Beijing, China. For more information, please visit www.hmelan.com.

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