Modern Water plc - AGM statement

28 Apr 2008

Modern Water plc, the company established to build and exploit a portfolio of technologies aimed at addressing problems of the availability of fresh water and the treatment and disposal of wastewater, holds its Annual General Meeting at  10:00 a.m. today, 28th April, at the Company's head office in Guildford, Surrey. Neil McDougall, Modern Water's Executive Chairman, provides the following update on trading to accompany the meeting:

"Modern Water continues to make good progress across all aspects of the Company's business. Our plans to install a proving plant for our desalination technology in Gibraltar are on track and the plant should be operational by mid-2008. The proving plant will be located next to existing desalination facilities and will use the same feedwater. This is a significant opportunity to prove the efficiency of our process in a commercial environment and we are looking forward to having the plant in place.

Modern Water's strong cash position leaves the Company well positioned to take advantage of investment opportunities and we continue to receive a high level of interest from third parties; both from operators who are interested in using our existing technologies, and from other organisations who are looking to tap into our resources and expertise.

As we move from research and development to commercialisation, we are pleased to confirm that we have a healthy and productive product pipeline. With a number of innovative applications of our technology being developed for near-term revenue generation, and several exciting longer term revenue opportunities, Modern Water
is well placed to focus on the deployment of our technologies.

In summary, as we approach the one-year anniversary of our listing on the AIM Market, the Modern Water business is in very good shape. Our core business of desalination technology, is approaching an exciting milestone and our broader portfolio of technologies confirms Modern Water's position as a sector specialist with a clear focus on addressing the global shortage of fresh water and the treatment of wastewater."

For further information:

Modern Water plc
Neil McDougall, Executive Chairman                       07740 930303
www.modernwater.co.uk                                    01483 696000

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Dudley White or Tom Gough                                020 7367 5222

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