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January 1, 2017

Global Water Technologies releases annual shareholder letter

Dear Shareholders of Global Water Technologies,

We are pleased to report progress at the company in 2016 and a positive outlook for 2017. Efforts begun over the past years have started to produce results and the company is looking forward to continued growth in the coming year.

Global Water Technologies has been working to develop solutions in three areas. Its legacy business of non-chemical water treatment; use of “smart water” technologies that leverage sensors and software to improve efficiency; and trenchless technologies that provide cost-effective rehabilitation for water infrastructure.

The company has seen progress in all three areas during 2016. A key accomplishment was the first technology demonstration in the 16 Tech district of Indianapolis, which featured visiting delegations from Canada and China. As a result of that event and agreements dating to 2014, initial revenues from China were received in 2016 and are expected to continue in 2017.

As noted at the start of 2016, the company's stock price of $0.01 presented potential for significant gains. During the year, 1,074,636 shares of GWTR stock traded at prices between $0.01 and $0.04 and the closing price was $0.03. While OTC stocks are often volatile and require caution in analysis (see our Investors page), the 2016 results were positive for both new and existing shareholders and the company believes there is continued opportunity for growth in 2017.

The water technology sector continues to attract investor interest and the Global Water Solutions Fund (HTO-UN.TO) that the company mentioned last year has also seen growth, with its share price increasing from $6.82 to $7.73 (+13.3%) during 2016. Macro trends of growing demand for clean water supplies and increased need for better water infrastructure are among factors drawing interest to new water technologies.

Although the company did not raise funds to complete its upgrade to Current Information on OTC Markets in 2016, that continues to be a priority. The last quarterly filing continues to provide a reasonable evaluation of the company's position on an annualized basis, with continued progress over the past two years on increasing gross revenues and decreasing the net loss.

One significant change is the reduction in debt announced in August, when the company took steps to improve its balance sheet through a conversion of debt into equity. Accordingly the company expects to record a reduction of $377,500 in its current portion of long-term debt, a reduction of $147,084 in accrued interest and a reduction of $5,000 in accounts payable.

The number of common shares at December 31, 2016 is 21,645,146 and the number of free-trading shares remains at 5,895,503. The company believes that its avoidance of toxic financing has allowed it to successfully navigate challenging situations over the past several years and will continue to allow issuance of new shares in a manner that creates value for both new and existing shareholders.

In September the company participated in the launch of a new North American alliance of the Smart Water Networks Forum (SWAN) and it will be presenting at the organization's first meeting in San Diego on January 25. Combining the growing interest in this area with the potential focus on domestic infrastructure by the incoming U.S. administration presents unique opportunities and the company believes it is positioned well as those take shape in the coming months.

Thanks to all who have supported Global Water Technologies and best wishes for a prosperous 2017. Please continue to follow our progress in the emerging water sector, as we work to create value for the company and provide important solutions for our communities.


Sincerely,

Erik Hromadka
Chairman and CEO

FORWARD-LOOKING STATEMENT:
Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential," or "continue," or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.

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