PETALUMA, Calif. "“ Jan. 21, 2009 "“ HydroPoint Data Systems, Inc., provider of the WeatherTRAK(R) Smart Water Management solution, today announced record breaking growth for the year ending December 31, 2008. HydroPoint saw three record breaking quarters contributing to over 70 percent year over year growth in revenue, closing its strongest fourth quarter ever. The company also passed a customer milestone of more than 16,000 subscribers, growing subscriber revenue 105 percent and holding extraordinary commercial subscriber retention at 95 percent. In addition, distribution revenue increased by 95 percent year over year.

Strong Customer Growth
Customers such as Regency, The Coca-Cola Company, Kohls, to name a few, have selected HydroPoint's WeatherTRAK Smart Water Management Solution to drive this exceptional growth. HydroPoint's WeatherTRAK smart irrigation controllers eliminate water waste through the automated adjustment of water output based on multiple environmental parameters including plant type and local weather. Saving four times more water than traditional urban water conservation practices, the WeatherTRAK solution's automation boosts the productivity of landscape maintenance teams as workers no longer need to adjust irrigation systems manually.

"Customer results have been the key to our success," said Paul Ciandrini, President and Chief Executive Officer for HydroPoint Data Systems. "WeatherTRAK provides industry leading water conservation results and a 12-24 month time to return; one of the shortest ROI’s for most Green Technologies."

The Emergence of Clean Water Technology and Sustainability Programs

With the technology evolution from "Irrigation Controllers" to "Clean Water Technology" and the momentum of Smart Water Management, industries from Government/Municipalities to Retail and Manufacturing are adopting HydroPoint technology as the standard for reducing their water and energy footprint.

With both higher water costs and drought conditions becoming more prevalent across North America, the sharp decline in the world's water supply has meant a dramatic increase in water rates, which has now outpaced oil and gas prices. This in turn has resulted in the adoption of Clean Water Technology and Corporate Sustainability programs. It is critical for all organizations "“ from Wall Street to Main Street, as well as government "“ to evaluate their water footprint as part of their conservation efforts.

Leading companies such as Jack in the Box, The Coca-Cola Company, Lockheed Martin, Google, and eBay as well as municipalities like Newport Beach, CA, Petaluma, CA, and Charleston, SC are adopting Sustainability 2.0 practices to ensure the lasting success of their green programs. Sustainability 2.0 represents the next generation of emerging sustainability programs that share a set of common characteristics "“ delivering significant financial cost savings and accountability that previous initiatives lacked, while also meeting enterprise sustainability goals for reducing a company's water footprint and environmental impact.

Second Half Key Milestones and Accomplishments

HydroPoint Partners with Wal-Mart on Green Jobs council
Wal-Mart Stores, Inc. (NYSE: WMT) has established a partnership with many of its leading sustainability suppliers to facilitate the creation of green jobs in the United States. The Wal-Mart Green Jobs Council is comprised of representatives throughout the retailer's divisions, including store operations, real estate, logistics and sustainability, and representatives from suppliers across a variety of industries.

New Hires
To strengthen the management team and further its efforts in promoting Smart Water Management’s dual benefits of responsible water conservation that delivers significant financial returns, several key executive positions were filled: President/CEO, Sr. VP of Sales, VP of Marketing, and VP of Professional Services and Support.

Awards
HydroPoint was the recipient of several industry awards for developing innovative sustainability technology for Smart Irrigation. This recognition has been awarded from a diverse group of organizations and government bodies.

• 6th Annual Flex Your Power Awards - Innovative Products & Services Award
  HydroPoint's WeatherTRAK has been recognized for reducing water footprint and urban runoff to deliver environmental and financial benefits.

• EcoHome Magazine's 2008 Editors Choice Awards"¨
  WeatherTRAK was recognized by EcoHome Magazine for its innovation, performance and contribution to more efficient and healthier homes through water conversation.

• AlwaysOn Going Green Award
  "¨HydroPoint was acknowledged as a leader in profitable green business, featured among the top 100 leading private companies in clean technology. HydroPoint took top honors in the Going Green Water Technology and Water Management category.

• Assemblyman Jared Huffman's Sustainable North Bay Business"¨ HydroPoint was the August 2008 recipient of California Assemblyman Jared Huffman's Sustainable North Bay Business Award, highlighting businesses that are actively engaged in sustainable activities in the North Bay.

• North Bay Business Journal's Best Place to Work
  "¨The North Bay Business Journal named HydroPoint to their list of "Best Places to Work" in 2008. This list provides the North Bay with key benchmarks for what makes a company a great place to work. HydroPoint employees enjoy working at the company due to strong camaraderie and a pride in the company's technology.

• Co-Presenters have included The Coca-Cola Company, Environmental Leader, Jack in the Box, and AMR Research Group.

• Programming "“ The WeatherTRAK application enables remote and faster programming with the ability to view all water controller functions on a single Web page
  
• Managing "“ Users enjoy faster troubleshooting and problem resolution with the ability to view and make any controller changes in real-time
  
• Monitoring "“ WeatherTRAK users can save more water and improve landscapes by adjusting or making changes as they occur.

HydroPoint's products are the most independently tested and validated water management solutions in the industry and have been proven in 23 independent studies including The Environmental Protection Agency (EPA), Center for Irrigation Technology and Los Angeles Department of Water and Power.

About HydroPoint Data Systems, Inc.

"¨HydroPoint, founded in 2002, is the market and technology leader in smart water management. The company's WeatherTRAK solution uniquely delivers a multitude of financial and environmental benefits by revolutionizing management of the area of greatest waste in urban water use: landscape irrigation. Proven in 23 independent studies, including the EPA, the WeatherTRAK solution saves water, reduces energy demand and protects water quality while it minimizes liability and expense exposure. In 2009 alone, WeatherTRAK subscribers will save 11.3 billion gallons of water, 45 million kilowatt hours and 60 million pounds of CO2. With water rates ranging from $2 to $6 per 1000 gallons and additional related expenses due to overwatering damages ranging from $500 to $10,000 per site, WeatherTRAK has been identified as the green initiative with the fastest payback by leading companies across the country. Headquartered in Petaluma, Calif., HydroPoint is privately owned and operated. For more information, visit http://www.hydropoint.com

WeatherTRAK is a registered trademark of HydroPoint Data Systems, Inc.

HydroPoint Data Systems

HydroPoint Data Systems

WeatherTRAK smart water management from HydroPoint Data Systems, Inc. is the proven green initiative that enables 13,000 subscribers to improve property valuation by continuously optimizing irrigation and eliminating water-related property destruction and liabilities. Twenty-three independent studies prove that the WeatherTRAK network maximizes water conservation and improves landscape health. A California EPA-funded study proves WeatherTRAK's ability to reduce runoff pollution by 71 percent. Additionally, the WeatherTRAK product line received perfect scores across the board on the Smart Water Application Technologyâ„¢ protocol, developed by a consortium of public agencies to objectively measure smart controller performance. WeatherTRAK solutions are eligible for all public agency rebate programs and meet the highest U.S. standards for irrigation equipment, the State of California's. Headquartered in Petaluma, California, HydroPoint is privately owned and operated. For more information, visit www.weathertrak.com.

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