U.S. District Court Rules No Infringement Threat; Electropure Signs Option Agreement For Patented Ion Exchange Resins.

LAGUNA HILLS, Calif.--(BUSINESS WIRE)--July 12, 1996-- Electropure Inc. and HOH Water Technology Corp. (HOHI) Friday announced that the U.S. District Court for the Central District of California has ruled there has been and is no threat by Millipore of patent infringement against the companies relating to the electrodeionization product known as EDI.

U.S. District Court Judge John G. Davies had been requested by Electropure and HOH to determine whether Millipore's conduct with respect to U.S. Patent Nos. 4,632,745 and 4,925,541 posed a reasonable apprehension on the part of HOH and its customers of threatened patent infringement. Davies ruled that there is no threat of patent infringement and, accordingly, dismissed a lawsuit between the parties stemming from Millipore's conduct.

Floyd Panning, president of Electropure, stated: "As Millipore has denied any threatened infringement and as the court so held, we feel vindicated from Millipore's campaign of intimidation and can now set about the business of selling our EDI product.

"Of course, should Millipore engage in any such conduct in the future, Electropure and HOH will vigorously pursue any such unfounded claims of infringement and reinstate the litigation which alleged that these two Millipore patents were obtained by fraud on the U.S. Patent Office."

Electropure also announced that it entered into an option agreement with Halox Technologies of San Antonio, Texas, to license its proprietary technology relating to the electrochemical regeneration of ion exchangers in an electrical field. Preliminary results indicate that the Halox technology can substantially improve the performance and capacity of Electropure's EDI product, which it licensed from HOH Water Technology Corp. in 1992.

Electopure is actively exploring other license opportunities for technologies and components that can enhance EDI's efficiency while decreasing product costs and expects to expand its patent portfolio as a result of the current licensing and development activities.

HOH recently struck a deal with Electropure to reacquire the patented EDI technology earlier than originally planned. Floyd Panning will take over as CEO of HOH, and his technical staff will join the team as well. A corporate name change to "Electropure Inc." and a 1-for-10 reverse stock split, which was approved by HOH shareholders in May, will take effect on July 25, 1996.

CONTACT: HOH Water Technology Corp.

Cathy Patterson, 714/770-9187

or

Electropure Inc.

Floyd Panning, 714/770-9347