NEWS RELEASE                                   MAY 2008

The World Market for Large-scale Reverse Osmosis Systems will Increase Nearly 50% Over Next 4 years

Northfield, Illinois (The McIlvaine Company) – The McIlvaine Company projects that, worldwide, there will be a 45-50% increase in sales of large-scale reverse osmosis (RO) systems over the next 4 years. In its online report RO, UF, and MF World Markets, McIlvaine forecasts that world RO equipment and membrane sales will reach $5.6 billion (USD) in 2012, compared to $3.8 billion in 2008.

Below are 2008 and 2013 McIlvaine revenue forecasts in the “top 13” countries:

McIlvaine Company president Robert McIlvaine states, “We’ve been watching three different market segments as major drivers of RO sales growth: semiconductor manufacturing, pharmaceutical processing, and desalination. Of these, we expect to see the greatest growth in the area of desalination, especially in Asia and the Middle East.”

In China, for example, the need for both potable water and ultra-high-purity water has been increasing in-line with industrialization. With ongoing advances in membrane technology, reverse osmosis has become an increasingly cost-effective option for desalination. Based on current data, McIlvaine forecasts world RO sales into desalination markets to reach $3 billion compared to $2 billion in 2008.

In the semiconductor and pharmaceutical industries, reverse osmosis is well-established as a critical step in providing ultra-high-purity water for processing. These industries also use reverse osmosis in their wastewater systems for removing contaminants. Sales of reverse osmosis systems into these two industries will continue to expand with ongoing increases in production, according McIlvaine.

For more information on the McIlvaine Company RO, UF, MF Market Report visit http://www.mcilvainecompany.com/brochures/RO_brochure/RO%20charts/ro_brochure.htm