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July 26, 2011

Global Water Technologies outlines FAQ for reverse split

INDIANAPOLIS, July 26, 2011 -- Global Water Technologies outlines the following frequently asked questions regarding its previously announced reverse split.

What is a reverse split?

A reverse split is a process used to reduce a company's outstanding common stock by exchanging all shareholders' existing shares for a lesser number of shares having a correspondingly higher price while maintaining the same value. For example, in a one for one hundred reverse split, 1,000,000 shares with a market closing price of $0.0005 and having a market value of $500 would upon reverse become 10,000 shares at an initial price of $0.05 with the same market value of $500 at the start of trading on the effective date of the reverse split (there is no assurance that the price will be maintained thereafter).

What will happen to Global Water Technologies (GWTR) stock when the reverse split happens?

Upon approval from the Financial Industry Regulatory Authority (FINRA), each share of issued and outstanding common stock will be reverse split on a one for one hundred basis and the stockholder records will be automatically adjusted to reflect the reverse split. Fractional shares will be rounded up to the nearest whole share. The number of authorized shares will not change. The number of outstanding shares will be reduced from 853,580,437 to 8,535,805. Each existing shareholder will have their number of shares divided by 100 and the price of each share will be multiplied by 100, so that the current value of their holdings is the same at the start of trading on the effective date.

When will GWTR's reverse split happen?

The effective date will be determined by FINRA, which will notify the company as well as all brokerage firms and other parties. Global Water Technologies will also announce the effective date with a press release.

Will the GWTR stock symbol change?

Global Water Technologies did not request a stock symbol change from its current "GWTR" symbol. However, for a reverse or forward split, a "D" will be placed on the ticker symbol for 20 business days. After 20 business days, the symbol will revert back to the original symbol.

Why did the company decide to conduct a reverse split?

The board and a majority of shareholders believe that a reverse split is in the best interest of the company's long-term success, for reasons that include the following:

• Given the company's small size and market cap, the number of outstanding shares was excessive and resulted in prices trading for less than a penny. Having fewer outstanding shares trading above a penny will simplify trading transactions and should increase investor interest. The move will also result in more specific pricing, with smaller changes in each tick of the stock price. For example, a tick down from $0.05 to $0.049 would result in less of a percentage drop than a tick down from $0.0005 to $0.0004 and allow the market to provide a more specific valuation of the shares.

• The company believes a higher price per share will also improve visibility to capital markets and provide access to capital on more favorable terms. This will help the company to raise needed capital for new projects and provide a better investment tool in the event that the company should issue shares to take a stake in new technology projects or in other companies.

• The company has also been notified that some brokers may restrict trading in stocks that are priced below a penny and believes that conducting a reverse split now will help to avoid such future problems.

Will this impact the stock price?

The reverse split will impact the stock price at the start of trading on the effective day, by reducing the number of shares by a factor of 100 and increasing the price per share by a factor of 100. The value of a portfolio of shares held before the effective date will not be changed by the reverse split itself, however, after the reverse split, prices will be determined by market demand, trading activity and the future success of the company.

Will this dilute the existing shareholders?

The reverse split will not dilute ownership of existing shareholders. However, some dilution may occur as the company seeks to raise additional funds and make investments in new water technologies. The company will review such opportunities carefully and issue additional shares in cases where it believes such investment is in the best interest of the company and all of its shareholders.

Is there other news as part of this reverse split?

News about the reverse split and current projects is available on the company's web site at gwtr.com and through the OTC Markets at otcmarkets.com. The company has not engaged any promoters for its stock, nor has it authorized any third-party entities to make claims or statements related to the reverse split or the company's other projects.

News about future developments and new projects will be posted to the company's web site at gwtr.com as warranted.


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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