News from CNW Group

IWS, PCL and Touchstone announce Agreement to implement SBS(TM) waste water collection system under the project and construction management of PCL

Thursday, May 19, 2005

OTTAWA, May 19 /CNW Telbec/ - Innovative Water and Sewer Systems Inc. (TSX-V:IWS) (IWSSI), PCL Family of Companies (PCL), and Touchstone on Lake Muskoka Inc. ("Touchstone"), today announced an agreement to implement the SBS(TM) waste water collection system. Touchstone ( www.touchstoneonlakemuskoka.com ) will be the first SBS(TM) implementation by PCL. The estimated value of the wastewater collection and treatment capacity for the Touchstone development is $1,700,000. The Agreement provides Touchstone with the IWSSI Price, Approval and Performance Protection (PAPP) commitment as announced March 31, 2005 by IWSSI.

Mr. John Davies, Executive Vice President of Touchstone commented "The combination of the quality and value of the IWSSI system and project delivery depth and excellence of PCL, enabled Touchstone to select what we believe to be an environmentally superior solution, with significant cost advantages."

Mr. Bruce Linton, CEO and President of IWSSI commented "Engaging Touchstone as a client represents a significant milestone for IWSSI. This is a high quality development in a prestigious resort area, and selection of the SBS(TM) system indicates that it is not only cost effective but also delivers superior performance. The establishment of IWSSI's National Partnership Agreement with PCL has elevated the visibility and credibility of our solution", he said.

Mr. Dwight Brown, Vice President and District Manager for PCL commented "Touchstone on Lake Muskoka is a very exciting development seeking to deliver unequalled quality and environmental excellence. The selection of the IWSSI offering and PCL services to implement the SBS(TM) system will further secure the leadership position of the project."

The award-winning team at Touchstone has been developing some of southern Ontario's most unique living environments since 1993. Combining superior architecture with modern conveniences, they create more than just living spaces...they build living experiences.

PCL is the largest general contractor in Canada and one of the largest in North America. The organization's annual billings exceed $3 billion, and projects span the industrial, commercial, institutional, civil and multi- family residential market sectors. PCL, which is 100% employee owned, will celebrate its 100th anniversary in 2006.

IWSSI designs and implements waste water management systems utilizing the SBS(TM) patented solid and liquid waste collection systems. For many communities IWSSI can provide community sewer and water systems with superior performance at costs which are significantly lower than the cost of traditional methods. IWSSI systems have been in operation in Ontario communities since 1989 are approved by the Ontario Ministry of the Environment and meet the Ten-State Standard in the United States.

The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.

/For further information: Touchstone on Lake Muskoka Inc.: John Davies, Executive Vice President, Development, 1-416-561-5876, www.touchstoneonlakemuskoka.com; PCL Constructors Canada Inc.: Dwight I. Brown, VP & District Manager, (613) 225-6130, www.pcl.com; Innovative Water & Sewer Systems Inc.: Bruce Linton, CEO & President, (613) 831-9906, www.iwssi.com/

     INC.; TOUCHSTONE ON LAKE MUSKOKA INC.