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January 1, 2019

Global Water Technologies releases annual shareholder letter

Dear Shareholders of Global Water Technologies,

Welcome to a new year for our company and our annual shareholder letter that reviews both progress to date and opportunities ahead. Last year’s update outlined three areas of focus and how we positioned the company for a significant expansion of operations and shareholder value.

We have continued to operate in those three areas: non-chemical water treatment, smart water solutions and trenchless technologies. Our plan for 2018 was built largely around a unique opportunity where our home state was selected for $436 million in federal financing for water infrastructure through the US EPA’s new WIFIA program.

Indiana was named as the only statewide recipient of this program in the summer of 2017 and the US EPA administrator officially announced the funding with the Indiana governor in April of 2018. The program envisioned a complex process by which federal dollars would be matched by state dollars and then used to move forward projects in dozens of local communities. A statewide task force was established to review comprehensive water infrastructure needs across Indiana and create a plan to take action and leverage both funding and technology innovation.

Although the WIFIA closing was anticipated at several points during the year, it did not occur before the federal government shut down at the end of December. A separate green bond issue for water infrastructure projects was issued by the state in December. Federal and state officials have stated they would like to see Indiana’s WIFIA program implemented in 2019.

Meanwhile, the company moved forward with several strategic partners to test technology solutions that can be used in smart water/city projects. One example is the use of LoRa networks to connect devices such as water meters and robotic devices for pipeline inspections. Such testing has taken place in the 16 Tech innovation district of Indianapolis, at the new Indiana IoT Lab and in rural southern Indiana.

Another significant development is related to advances in the UV-C LED technology that the company showcased at a 16 Tech event in 2016. Successful deployment by our strategic partner since then has led to lower costs and opened new market opportunities. Global Water Technologies is engaged in discussions to establish several distribution channels for the technology in 2019.

Deployment of trenchless technologies in China generated some revenues in 2018, but internal and external factors for that market have changed and future plans there are under review.

In 2018, shares of Global Water Technologies (GWTR) stock traded between $0.005 and $0.02 with a closing price of $0.01 and volume of 1,087,695. In 2017, there were 713,375 shares traded between $0.01 and $0.045 with a closing price of $0.01.

The Global Water Solutions Fund (HTO-UN.TO) we had selected as a benchmark for our progress ceased trading over the summer at $8.75 after starting the year at $10.21.

The number of common shares at December 31, 2018 was unchanged for the year at 21,882,146 and the number of free-trading shares remains at 5,895,503. The company has issued warrants for the purchase of 2 million shares at $0.015 and has reserved 1.85 million shares for convertible promissory notes totaling $79,500. Continued avoidance of both toxic financing and related stock promotion allows for the issuance of additional shares in a manner that creates value for new and existing shareholders.

As we turn the page to a new year, we look forward to creating value together with our shareholders, team members, strategic partners and customers. Best wishes for 2019!



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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