Cascal NV (New York Stock Exchange)

Cascal N.V. (Cascal), incorporated on March 23, 1999, provides water and wastewater services to its customers in seven countries: the United Kingdom, South Africa, Indonesia, China, Chile, Panama and The Philippines. In a typical water project, the Company collects raw water from surface and groundwater sources, treat the water to meet the required quality standards and then supplies the treated water through a distribution network to its customers’ premises.

In a typical wastewater project, Cascal collects the wastewater from its customers’ premises, treat the wastewater to meet the required standards and returns the treated water to the environment. The Company provides these services under long-term contracts or licenses that typically give it the right to provide its services within a defined territory. Cascal’s customers are predominantly homes and businesses representing a total population of approximately three million. On February 1, 2007, Cascal acquired 100% of Pre-Heat Limited, a business that supplies gas installation and maintenance services in the South of England. On May 3, 2007, the Company acquired a 73.4% interest in Siza Water Company (Proprietary) Limited, a water and wastewater services company in South Africa. In June 2008, Cascal B.V. acquired 100% of the Servicomunal and Servilampa companies located immediately to the north of Santiago, Chile. These two businesses operate perpetually held, regulated water and wastewater concessions. In July 2008, Cascal announced that its China Water subsidiary has completed the acquisition of a 51% stake in an equity joint venture in Zhumadian City, China. The new joint venture company, Zhumadian China Water Company, which partners Cascal with the Zhumadian Bangye Water Group, has commenced operations. United Kingdom (Bournemouth & West Hampshire Water/water) The Company conducts its operations in the United Kingdom through Bournemouth & West Hampshire Water Plc, a licensed provider of water services under the United Kingdom’s Water Act 1989, which it refer to herein as Bournemouth. Bournemouth owns all of the plant and facilities that it uses to supply water to its customers. Bournemouth operates in a defined service area as the network water supplier subject to a 25-year license (which has a rolling termination date and thus is effectively perpetual) or until one or more specified events occur, such as a serious breach of duty under the law or the license. The project provides water services only and does not provide any wastewater services to its customers. In addition to Bournemouth’s regulated business, it also operates a limited range of non-regulated businesses. Bournemouth’s regulated operations, which consist of water extraction, treatment, storage and delivery to its customers, contributed 78% of Bournemouth’s total revenue during the fiscal year ended March 31, 2008 (fiscal 2008). Bournemouth owns harbor moorings, fishery rights and land. Bournemouth also conducts certain limited businesses serving primarily as complements to its regulated operations. They consist of a range of home service businesses, including plumbing, central heating and drainage installation and maintenance service and emergency plans. South Africa (Silulumanzi and Siza Water/water and wastewater) Cascal conducts most of its operations in South Africa through the Greater Nelspruit Utility Company (GNUC), which operates under the name Silulumanzi. The Company owns a 90% interest in Silulumanzi, with the remaining 10% owned by Sivukile Investments (Pty) Ltd. (Sivukile), a black empowerment enterprise. On May 3, 2007, Cascal acquired a 73.4% interest in Siza Water, the company that has responsibility for providing water and wastewater services to the Dolphin Coast region near Durban. The Company acquired 58.4% of the shares from Finagestion, a subsidiary of the French group Bouygues, and 15% of the shares equally from three South African Black Economic Empowerment (BEE) groups. Of the remaining shares, 23% are held by Metropolitan Life Limited (a South African insurance company) and 3.6% by an Employee Share Trust.

• Indonesia (ATB and ATS/water) The Company principally conducts its Indonesian operations through PT Adhya Tirta Batam (ATB), a 50-50 joint venture between the Company and PT Bangun Cipta Kontractor (BCK), an Indonesian construction company. Initially Cascal and BCK each owned 45% of ATB, and another Indonesian company owned the remaining 10%. ATB’s service area covers all of Batam Island, which is located approximately 10 miles off the coast of Singapore.
• China (Yancheng, Fuzhou, Yanjiao, Qitaihe and Xinmin/water) On November 15, 2006, Cascal acquired an 87% interest in The China Water Company Limited (China Water), a water company that held majority interests in four water projects in China. The Company acquired its interests from RWE Thames, which owned 48.8% of China Water, Sime Darby, which owned 33%, and two additional shareholders that collectively owned 5.2%. The remaining 13% of the shares in China Water is held by the Kadoorie group, a Hong Kong-based group with interests in hotels and infrastructure, through their subsidiary, Waterloo Industrial Limited (Waterloo). China Water owns majority interests of between 72% and 94% in these four Chinese projects. Each of these projects consists of a cooperative joint venture between China Water and the local water supply company. These four China Water projects, Fuzhou, Yanjiao, Xinmin and Qitaihe, supply water in the eastern regions in China. On April 29, 2008, the Company announced that its subsidiary China Water had acquired a 49% stake in an equity joint venture in Yancheng City, China. On June 16, 2008, the Company announced that on June 13, 2008, its subsidiary China Water had agreed to acquire a 51% stake in an equity joint venture in Zhumadian City, Henan Province, China. Chile (Aguas Santiago, Aguas Chacabuco and Bayesa/water and wastewater) Cascal has operations in Chile’s capital, Santiago, and in northern Chile in and around the city of Antofagasta, a city with a population of approximately 342,000. The Company’s operations in Santiago supply water and wastewater services to a population of approximately 13,000 within both the urban areas and the non-urban expansion areas of Santiago. In the urban areas, the Company operates through Aguas Santiago S.A. (Aguas Santiago), and in the expansion areas, it operates through Aguas Chacabuco S.A. (Aguas Chacabuco). Its operations in northern Chile, which treats the city of Antofagasta’s wastewater and sells the treated effluent to an industrial user in the mountains outside the city, are operated by Biwater Aguas y Ecologia S.A. (Bayesa). The Company owns 100% of each of Aguas Santiago, Aguas Chacabuco and Bayesa, and manages them on a consolidated basis through its wholly owned Chilean holding company, Cascal S.A., from its head office in Santiago. Panama (Aguas de Panama/water) The Company operates in Panama through its wholly owned subsidiary Aguas de Panama, SA (Aguas de Panama), which it acquired effective June 26, 2006 from Biwater. The service areas supplied are the districts of La Chorrera, Arraijan and Capira located west of the Panama Canal in Panama City. Aguas de Panama delivers bulk potable water to Instituto de Acueductos y Alcantarillados’ Nacionales (IDAAN’s) distribution network, which then distributes the water to its customers. A population of approximately 300,000 is served by this bulk water. The Philippines (Subicwater/water and wastewater) Cascal conducts its operations in The Philippines through Subic Water & Sewerage Company Inc. (Subicwater), a joint venture with its local partners, DMCI Project Developers, Inc. (DMCI); the Subic Bay Metropolitan Authority (SBMA), and Olongapo City. The Company owns 30% of Subicwater, DMCI owns 40%, SBMA owns 20%, and Olongapo City owns 10%. The Company competes with Veolia Environnement, Suez, SAUR, Gelsenwasser, AMGA, Aqualia, Agbar, Salcon and Ranhill.