HispanicBusiness

Highlights for the quarter ended September 30, 2012:

•Quarter-over-quarter gross profit increased to $579,008 from $416,167, representing an increase of 39 percent. •Quarter-over-quarter operating expenses decreased to $1,246,323 from $1,302,704, representing a decrease of 4.3 percent. •Quarter-over-quarter net loss decreased to $427,872 from $552,509, representing a decrease of 22.5 percent. •LiqTech entered into a cooperation agreement with Provital Solution A/S -- a manufacturer and developer of advanced water filtration solutions for pool and spa water in the Scandinavia and Australian market.

ABOUT LIQTECH INTERNATIONAL, INC.
LiqTech International, Inc., a Nevada corporation, is a clean technology company that for more than a decade has developed and provided state-of-the-art technologies for gas and liquid purification using ceramic silicon carbide filters, particularly, highly specialized filters for the control of soot exhaust particles from diesel engines and for liquid filtration. It also manufactures kiln furniture. Using nanotechnology, LiqTech develops products using proprietary silicon carbide technology. LiqTech's products are based on unique silicon carbide membranes which facilitate new applications and improve existing technologies. For more information, please visit www.liqtech.com.

Forward-Looking Statements
This press release contains "forward-looking statements." Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by us in the our reports filed with the Securities and Exchange Commission, including the risk factors that attempt to advise interested parties of the risks that may affect our business, financial condition, results of operation and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.

                          -Financial charts follow-                LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES                         CONSOLIDATED BALANCE SHEETS                                                    As of          As of                                                September 30,   December 31,                                                     2012           2011                                                -------------  -------------Current Assets:                                  (UNAUDITED)  Cash                                          $   3,710,067  $   1,033,057  Accounts receivable, net                          4,397,965      5,299,569  Other receivables                                 1,005,200      1,528,362  Inventories                                       4,067,699      2,980,583  Prepaid expenses                                    220,306        301,375  Current deferred tax asset                          102,677         17,786                                                -------------  -------------    Total Current Assets                           13,503,914     11,160,732                                                -------------  -------------Property and Equipment, net of accumulated depreciation                                       6,563,784      6,647,217                                                -------------  -------------Other Assets:  Other intangible assets                              29,984         34,167  Other investments                                   148,571          6,483  Deposits                                            200,405        146,184                                                -------------  -------------    Total Other Assets                                378,960        186,834                                                -------------  -------------    Total Assets                                $  20,446,658  $  17,994,783                                                =============  =============                LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES                        CONSOLIDATED BALANCE SHEETS                                                  As of           As of                                              September 30,   December 31,                                                   2012            2011                                              -------------   -------------Current Liabilities:                           (UNAUDITED)  Lines of credit                             $           -   $   1,259,936  Notes payable - current portion                         -         259,396  Notes payable - related party, net of   discount                                               -       3,328,183  Current portion of capital lease   obligation                                       197,061         191,444  Accounts payable - trade                        1,407,388       3,026,960  Accrued expenses                                  833,920       1,212,746  Accrued income taxes payable                      157,227           3,710  Other accrued liabilities                           6,989             154                                              -------------   -------------    Total Current Liabilities                     2,602,585       9,282,529                                              -------------   -------------Notes payable and long-term debt, less current portion                                          -         350,000Long-term capital lease obligations, less current portion                                    798,306         950,351Deferred tax liability                              428,555         668,484                                              -------------   -------------    Total Long-Term Liabilities                   1,226,861       1,968,835                                              -------------   -------------    Total Liabilities                             3,829,446      11,251,364                                              -------------   -------------Stockholders' Equity:Common stock; par value $0.001, 100,000,000 shares authorized, 24,111,500 and 21,600,000 shares issued and outstanding at September 30, 2012, and December 31, 2011, respectively                                        24,112          21,600  Additional paid-in capital                     12,680,712       5,603,517  Retained earnings                               4,626,803       5,284,583  Deferred compensation                            (170,477)       (268,282)  Other comprehensive income, net                  (570,464)       (596,011)  Note receivable from a shareholder, net of   discount                                               -      (3,328,183)  Non-controlled interest in subsidiaries            26,526          26,195                                              -------------   -------------    Total Stockholders' Equity                   16,617,212       6,743,419                                              -------------   -------------    Total Liabilities and Stockholders'     Equity                                   $  20,446,658   $  17,994,783                                              =============   =============                LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES             (UNAUDITED) CONSOLIDATED STATEMENTS OF OPERATIONS                           For the Three Months       For the Nine Months                                   Ended                     Ended                               September 30              September 30                         ------------------------  ------------------------                             2012         2011         2012         2011                         -----------  -----------  -----------  -----------Net Sales                $ 3,115,471  $ 6,829,535  $13,410,527  $13,552,746Cost of Goods Sold         2,536,463    5,369,166   10,325,668   10,237,494                         -----------  -----------  -----------  -----------Gross Profit                 579,008    1,460,369    3,084,859    3,315,252                         -----------  -----------  -----------  -----------Operating Expenses:  Selling expenses           557,235      402,648    1,816,612    1,037,853  General and   administrative   expenses                  597,886      263,243    1,871,017    1,139,078  Research and   development                91,202      126,680      470,502      374,505                         -----------  -----------  -----------  -----------    Total Operating     Expenses              1,246,323      792,571    4,158,131    2,551,436                         -----------  -----------  -----------  -----------Income from Operations      (667,315)     667,798   (1,073,272)     763,816                         -----------  -----------  -----------  -----------Other Income (Expense)  Interest and other   income                     12,455       31,417      111,294       50,189  Interest (expense)          (7,376)     (59,923)    (133,264)    (139,166)  Gain (loss) on   currency transactions      12,478        8,658       76,077      (25,832)                         -----------  -----------  -----------  -----------    Total Other Income     (expense)                17,557      (19,848)      54,107     (114,809)                         -----------  -----------  -----------  -----------Income Before Income Taxes                      (649,758)     647,950   (1,019,165)     649,007Income Tax Expense          (221,886)      91,347     (361,386)     188,557                         -----------  -----------  -----------  -----------Net Income (Loss)           (427,872)     556,603     (657,779)     460,450Less Net Income (Loss) Attributable To Non- Controlled Interests in Subsidiaries                      -       72,397            -       82,207                         -----------  -----------  -----------  -----------Net Income (Loss) Attributable To LiqTech $  (427,872) $   484,206  $  (657,779) $   378,243                         -----------  -----------  -----------  -----------Basic Earnings Per Share $     (0.02) $      0.03  $     (0.03) $      0.03                         -----------  -----------  -----------  -----------Weighted Average Common Shares Outstanding       24,111,500   14,251,721   23,488,208   10,974,237                         -----------  -----------  -----------  -----------Diluted Earnings Per Share                   $     (0.02) $      0.03  $     (0.02) $      0.03                         -----------  -----------  -----------  -----------Weighted Average Common Shares Outstanding Assuming Dilution        25,094,201   15,761,847   26,394,383   11,477,612                         -----------  -----------  -----------  -----------                LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES                (UNAUDITED) CONSOLIDATED STATEMENTS OF OTHER                            COMPREHENSIVE INCOME                            For the Three Months      For the Nine Months                                   Ended                     Ended                                September 30              September 30                          -----------------------   -----------------------                             2012         2011         2012         2011                          ----------   ----------   ----------   ----------Net Income (Loss)         $ (427,872)  $  556,603   $ (657,779)  $  460,450Currency Translation, Net of Taxes                185,670     (456,337)      25,547      (65,918)                          ----------   ----------   ----------   ----------Other Comprehensive Income (Loss)            $ (242,202)  $  100,266   $ (632,232)  $  394,532                          ----------   ----------   ----------   ----------Comprehensive Income (Loss) Attributable To Non-controlling Interest in Subsidiaries                   (575)      (7,499)        (331)      11,521                          ----------   ----------   ----------   ----------Comprehensive Income Attributable To LiqTech International, Inc.      $ (242,777)  $   92,767   $ (632,563)  $  406,053                          ----------   ----------   ----------   ----------