Cascal N.V. Completes Acquisition of Majority Stake in Zhumadian China Water Company

Cascal N.V. Completes Acquisition of Majority Stake in Zhumadian China Water
Company
Company now provides water and wastewater services to 4 million customers
worldwide

LONDON, July 23 /PRNewswire-FirstCall/ -- Cascal N.V. (NYSE: HOO) ("the
Company"), a leading provider of water and wastewater services in seven
countries, today announced that its China Water subsidiary has completed the
previously announced acquisition of a 51 percent 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 formally commenced operations, effective immediately. The new joint
venture company received its business license from the Zhumadian municipal
government on June 19, 2008.
To complete the transaction, the existing water infrastructure was
transferred to the new joint venture company, and Cascal delivered the
purchase consideration for its 51% equity stake (approximately $18 million) on
July 23, 2008. Over the next 18 months, the new company will invest an
estimated $25 million to complete the construction of an additional 26 million
gallons per day water treatment plant and the associated infrastructure,
representing a total investment of $42 million. Over the initial 3 years,
Cascal expects the new company to achieve revenues rising from approximately
$6 million to approximately $13 million, and EBITDA margins improving from
slightly below 50 percent to approximately 60 percent.
"We are very pleased to have successfully completed the Zhumadian
transaction. We intend to turn our focus to both rapidly increasing the
treatment capacity and improving the quality and efficiency of services," said
Cascal Chief Executive Officer, Stephane Richer. "Zhumadian's population has
been rapidly growing and its economy has enjoyed double-digit growth in recent
years. We look forward to providing high-quality water services to our new
residential, industrial and commercial customers, representing a population of
approximately 400,000."
Cascal's China Water subsidiary is firmly established and growing in China
and currently operates long-term projects in Fuzhou, Yanjiao, Xinmin, Qitaihe,
Yancheng and now Zhumadian, providing water services to more than 1.5 million
residents.
About Cascal N.V.
Cascal provides water and wastewater services to its customers in seven
countries: the United Kingdom, South Africa, Indonesia, China, Chile, Panama
and The Philippines. Cascal's customers are predominantly homes and businesses
representing a total population of approximately 4 million.
Forward-looking statements
This release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are not guarantees of future performance. There are important
factors, many of which are outside of our control, that could cause actual
results to differ materially from those expressed or implied by such forward-
looking statements including: general economic business conditions,
unfavorable weather conditions, housing and population growth trends, changes
in energy prices and taxes, fluctuations with currency exchange rates, changes
in regulations or regulatory treatment, changes in environmental compliance
and water quality requirements, availability and the cost of capital, the
success of growth initiatives, acquisitions and our ability to successfully
integrate acquired companies and other factors discussed in our filings with
the Securities and Exchange Commission, including under Risk Factors in our
Form 20-F for the fiscal year ended March 31, 2008, filed with the SEC on June
25, 2008. We do not undertake and have no obligation to publicly update or
revise any forward-looking statement.
Investor Contacts:
KCSA Strategic Communications
Jeffrey Goldberger / Yemi Rose
+1 212.896.1249 / +1 212.896.1233
jgoldberger@kcsa.com / yrose@kcsa.com

SOURCE Cascal N.V.

Jeffrey Goldberger, +1-212-896-1249, jgoldberger@kcsa.com, or Yemi Rose,
+1-212-896-1233, yrose@kcsa.com, both of KCSA Strategic Communications, for
Cascal N.V.