Consolidated Water Co. Ltd. Reports Third Quarter Operating Results

GEORGE TOWN, Grand Cayman, Cayman Islands, Nov. 9 /PRNewswire-FirstCall/ --
Consolidated Water Co. Ltd. (Nasdaq: CWCO) today reported its operating
results for the third quarter and first nine months of 2009. The Company will
host an investor conference call on Tuesday, November 10, 2009 -- at 11:00
a.m. EST (see details below) to discuss its operating results and other topics
of interest.

For the three months ended September 30, 2009, revenues approximated $13.5
million, compared with approximately $17.2 million in the third quarter of
2008. Retail water sales were relatively unchanged at approximately $5.7
million, versus approximately $5.8 million in the prior-year quarter. The
volume of water sold was comparable in the third quarters of both 2008 and
2009. Bulk water revenues declined 16% to approximately $6.7 million in the
most recent quarter, compared with approximately $8.0 million in the
year-earlier period. Total gallons of water sold to bulk customers increased
by 7% from the prior-year quarter, but revenues decreased due to a reduction
in energy costs passed through to customers, as diesel and electricity prices
were significantly lower in 2009 than in 2008. Services revenues declined
from approximately $3.4 million in the third quarter of 2008 to approximately
$1.2 million in the third quarter of 2009, reflecting lower project
construction activity in 2009.

Net income attributable to controlling interests declined 63% to $657,900, or
$0.05 per diluted share, in the three months ended September 30, 2009,
compared with $1,780,017, or $0.12 per diluted share, in the quarter ended
September 30, 2008. The decrease in net income during the most recent quarter
was primarily due to increased losses recorded for the Company's equity
investment in OC-BVI, reflecting recent rulings by the Eastern Caribbean
Supreme Court with respect to the litigation between OC-BVI and the British
Virgin Islands government.

In spite of lower revenues, consolidated gross profit increased 9% to
approximately $5.0 million, versus $4.6 million in the prior-year quarter.
Gross profit on retail revenues rose 9% to approximately $3.2 million (57% of
revenues) in the quarter ended September 30, 2009, compared with approximately
$3.0 million (51% of revenues) in the third quarter of 2008. The improvement
in gross profit percentage from 2008 to 2009 resulted from the annual
inflation-related increase in base rate water prices that went into effect in
the first quarter of 2009, reduced operating and maintenance costs, and lower
energy prices. Gross profit on bulk revenues increased 34% to approximately
$1.4 million (21% of revenues), compared with approximately $1.0 million (13%
of revenues) in the year-earlier period. Bulk gross profits in Cayman
benefited from (i) the expiration of the original contract for the Red Gate
plant and the elimination of approximately $125,000 in amortization expense
for the intangible asset associated with this contract and (ii) annual
inflation-related increases in base water rates. Gross profits were higher in
the Company's Bahamas operations due to improved operating efficiencies at the
Windsor and Blue Hills plants in Nassau, New Providence. Bulk segment gross
profits also benefited from a reduction in diesel and electricity prices.
Gross profit on Services revenues decreased by 33% to approximately $0.4
million in the three months ended September 30, 2009, versus approximately
$0.6 million in the three months ended September 30, 2008. The decline
reflects lower construction revenues, partially offset by fees earned on the
Company's services contract for the Tynes Bay, Bermuda plant.

General and administrative expenses on a consolidated basis increased 25% to
approximately $2.7 million (vs. approximately $2.1 million), primarily due to
higher employee salaries, increased professional fees, bank charges related to
currency conversion fees, and costs to bid new projects.

Interest income was relatively unchanged at $311,990 in the third quarter of
2009, compared with $326,880 in the year-earlier quarter. Interest expense
declined slightly to $417,316 in the quarter ended September 30, 2009, versus
$436,077 in the quarter ended September 30, 2008.

The Company recorded losses from its investment in its OC-BVI affiliate in the
British Virgin Islands of approximately $1.6 million in the most recent
quarter, compared with approximately $0.6 million in the prior-year period.
The increase in the loss reflects impairment losses recorded by the Company
and OC-BVI as a result of the recent rulings of the Eastern Caribbean Supreme
Court with respect to the litigation between OC-BVI and the British Virgin
Islands government.

For the nine months ended September 30, 2009, revenues approximated $44.8
million, compared with approximately $49.3 million in the first nine months of
2008. Retail water sales increased 3% to approximately $18.4 million, versus
approximately $17.9 million in the corresponding period of the previous year.
A 2% increase in volume of water sold, along with price increases related to
inflation adjustments, more than offset a decrease of approximately $913,000
in revenues attributable to the pass-through of lower energy costs to
customers. Bulk water revenues declined 14% to approximately $19.5 million in
the first nine months of 2009, compared with approximately $22.6 million in
the year-earlier period. Total gallons of water sold to bulk customers
increased by 3%, but revenues decreased due to a reduction in energy costs
passed through to customers. Services revenues declined 22% to approximately
$6.9 million in the nine months ended September 30, 2009, compared with
approximately $8.8 million in the nine months ended September 30, 2008, due to
lower project construction activity, partially offset by fees from the
Company's services contract for the Tynes Bay plant in Bermuda.

Net income attributable to controlling interests increased 30% to $7,075,657,
or $0.49 per diluted share, in the nine months ended September 30, 2009,
compared with $5,433,513, or $0.37 per diluted share, in the first nine months
of 2008. The Company recorded a loss from its investment in OC-BVI of
approximately $2.8 million in the nine months ended September 30, 2009,
compared with prior-year losses of approximately $1.8 million. The increase
in the loss from the investment in OC-BVI reflects the above-mentioned recent
rulings of the Eastern Caribbean Supreme Court.

"Our gross profit margins continued to improve in both our retail and bulk
water segments during the third quarter and first nine months of 2009,
although a reduction in the amount of project construction activity hurt third
quarter gross profits in the services business segment and caused operating
income to decline slightly from prior-year levels for the quarter," stated
Rick McTaggart, Chief Executive Officer of Consolidated Water Co. Ltd. "We
are pleased with the improvements in operating efficiencies that we have been
able to achieve in our Bahamas operations and with the operating performance
of the Company, in general."

"While growth in water volumes sold has slowed due to the impact of the
economic recession upon tourism throughout the Caribbean Basin, we are still
running ahead of last year and remain optimistic regarding the long-term
demand for water in our various markets. Bidding activity for new water
projects remains active, as population growth increases demand and more
governments confront the impact of pollution upon traditional non-desalination
sources of drinking water."

"During the current quarter, we recorded an impairment loss for our investment
in OC-BVI of $160,000," continued Mr. McTaggart. "OC-BVI also recorded an
impairment loss for its Baughers Bay-related fixed assets of approximately
$2.1 million that greatly increased the loss we recorded for the quarter from
our investment in this affiliate. Both of these impairment losses resulted
from the recent rulings by the Eastern Caribbean Supreme Court with respect to
the litigation between OC-BVI and the British Virgin Islands government.
However, our OC-BVI losses are non-cash in nature and do not adversely affect
our cash position or our ability to fund projects. Although we lost our
counterclaim for plant expansion costs in the most recent ruling, the Court
ordered the BVI government to pay OC-BVI at the rate of $13.91 per thousand
imperial gallons for water produced by OC-BVI from December 21, 2007 to
present. This amounts to a total recovery for OC-BVI of $10.1 million as of
September 30, 2009, excluding any interest that may be due. Because OC-BVI
continues to account for revenues on a cash basis, it will not recognize as
revenue the $10.1 million payment ordered by the Court until such amount is
paid by the BVI government."

"Our financial position remains strong. As of September 30, 2009, cash and
cash equivalents exceeded $41 million, working capital approximated $50
million, our current ratio stood at a healthy 7.0-to-1.0, and long-term debt
of $21.4 million (including current portion) was equivalent to only 17% of our
stockholders' equity of approximately $126 million," concluded Mr. McTaggart.

The Company will host a conference call at 11:00 a.m. EST on Tuesday, November
10, 2009. Stockholders and other interested parties may participate in the
conference call by dialing 800-860-2442 (international/local participants dial
412-858-4600) and requesting participation in the "Consolidated Water
Conference Call" a few minutes before 11:00 a.m. EST on November 10, 2009. A
replay of the conference call will be available one hour after the call
through November 17, 2009 by dialing 877-344-7529 (international/local
participants dial 412-317-0088) and entering the conference ID 435557.

CWCO-E

About Consolidated Water Co. Ltd.

Consolidated Water Co. Ltd. develops and operates seawater desalination plants
and water distribution systems in areas of the world where naturally occurring
supplies of potable water are scarce or nonexistent. The Company operates
water production and/or distribution facilities in the Cayman Islands, Belize,
the British Virgin Islands, The Commonwealth of The Bahamas and Bermuda.

Consolidated Water Co. Ltd. is headquartered in George Town, Grand Cayman, in
the Cayman Islands. The Company's ordinary (common) stock is traded on the
NASDAQ Global Select Market under the symbol "CWCO". Additional information
on the Company is available on its website at http://www.cwco.com.

This press release includes statements that may constitute "forward-looking"
statements, usually containing the words "believe", "estimate", "project",
"intend", "expect", "should" or similar expressions. These statements are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements inherently involve
risks and uncertainties that could cause actual results to differ materially
from the forward-looking statements. Factors that would cause or contribute
to such differences include, but are not limited to, continued acceptance of
the Company's products and services in the marketplace, changes in its
relationship with the Governments of the jurisdictions in which it operates,
the manner in which the disputed issues between OC-BVI and the BVI Government
are resolved, the ability to successfully secure contracts for water projects,
the ability to develop and operate such projects profitably and the Company's
ability to manage growth and other risks detailed in the Company's periodic
report filings with the Securities and Exchange Commission. By making these
forward-looking statements, the Company undertakes no obligation to update
these statements for revisions or changes after the date of this release.

For further information, please contact:

Frederick W. McTaggart, President and CEO, at (345) 945-4277
or David W. Sasnett, Executive Vice President and CFO, at
(954) 427-6283 or via e-mail at info@cwco.com
http://www.cwco.com

or

RJ Falkner & Company, Inc., Investor Relations Counsel at
(800) 377-9893 or via e-mail at info@rjfalkner.com

(Financial Highlights Follow)

CONSOLIDATED WATER CO. LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS

September 30, December 31,
2009 2008
------------- ------------
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $41,235,590 $36,261,345
Accounts receivable, net 11,574,653 13,911,312
Inventory 1,592,494 1,617,484
Prepaid expenses and other current assets 2,259,869 1,444,445
Current portion of loans receivable 1,241,174 768,803
--------- -------
Total current assets 57,903,780 54,003,389

Property, plant and equipment, net 56,313,495 58,937,980
Construction in progress 6,251,775 6,157,958
Costs and estimated earnings in excess of
billings - construction project 386,707 7,377,554
Inventory non-current 3,585,856 2,971,949
Loans receivable 11,216,982 1,560,420
Investment in and loan to affiliate 12,120,482 14,371,312
Intangible assets, net 1,956,742 2,144,162
Goodwill 3,587,754 3,587,754
Other assets 3,373,586 3,544,096
--------- ---------
Total assets $156,697,159 $154,656,574
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and other current
liabilities $5,751,299 $7,310,327
Dividends payable 1,152,412 1,006,414
Current portion of long term debt 1,298,484 1,229,071
--------- ---------
Total current liabilities 8,202,195 9,545,812
Long term debt 20,146,542 21,129,269
Other liabilities 508,280 430,717
------- -------
Total liabilities 28,857,017 31,105,798
---------- ----------
Stockholders' equity
Controlling interests:
Redeemable preferred stock, $0.60
par value. Authorized 200,000
shares; issued and outstanding
17,233 and 17,366 shares,
respectively 10,340 10,420
Class A common stock, $0.60
par value. Authorized 24,655,000
shares; issued and outstanding
14,537,950 and 14,529,360 shares,
respectively 8,722,770 8,717,616
Class B common stock, $0.60 par value.
Authorized 145,000 shares;
none issued or outstanding - -
Additional paid-in capital 80,874,934 80,461,942
Retained earnings 36,434,034 32,340,077
---------- ----------
126,042,078 121,530,055
Noncontrolling interests 1,798,064 2,020,721
--------- ---------
Total stockholders' equity 127,840,142 123,550,776
----------- -----------
Total liabilities and stockholders' equity $156,697,159 $154,656,574
============ ============

CONSOLIDATED WATER CO. LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- ------------------
2009 2008 2009 2008
---- ---- ---- ----

Retail water
revenues $5,659,390 $5,833,347 $18,418,103 $17,855,530
Bulk water
revenues 6,687,836 8,002,586 19,526,044 22,648,443
Services
revenues 1,178,833 3,368,660 6,900,965 8,834,766
--------- --------- --------- ---------

Total
revenues 13,526,059 17,204,593 44,845,112 49,338,739
---------- ---------- ---------- ----------

Cost of retail
revenues 2,421,740 2,862,070 7,390,251 8,209,513
Cost of bulk
revenues 5,302,535 6,968,547 15,239,258 19,620,430
Cost of
services
revenues 765,716 2,748,715 3,611,992 7,440,300
------- --------- --------- ---------

Total cost
of revenues 8,489,991 12,579,332 26,241,501 35,270,243
--------- ---------- ---------- ----------

Gross profit 5,036,068 4,625,261 18,603,611 14,068,496

General and
administrative
expenses 2,671,169 2,128,654 7,842,434 6,754,902
--------- --------- --------- ---------

Income from
operations 2,364,899 2,496,607 10,761,177 7,313,594
--------- --------- ---------- ---------

Other income
(expense):
Interest
income 311,990 326,880 620,663 1,097,120
Interest
expense (417,316) (436,077) (1,287,369) (1,325,184)
Other
income 50,337 32,767 143,600 77,534
Equity
in earnings
(loss) of
affiliate (1,582,248) (639,546) (2,780,270) (1,772,570)
---------- -------- ---------- ----------

Other
income
(expense),
net (1,637,237) (715,976) (3,303,376) (1,923,100)
---------- -------- ---------- ----------

Consolidated
net income 727,662 1,780,631 7,457,801 5,390,494

Income (loss)
attributable
to non-controlling
interests 69,762 614 382,144 (43,019)
------ --- ------- --------

Net income
attributable
to controlling
interests $657,900 $1,780,017 $7,075,657 $5,433,513
======== ========== ========== ==========

Basic earnings
per common
share $0.05 $0.12 $0.49 $0.37
===== ===== ===== =====
Diluted earnings
per common
share $0.05 $0.12 $0.49 $0.37
===== ===== ===== =====
Dividends declared
per common
share $0.075 $0.065 $0.205 $0.195
====== ====== ====== ======

Weighted average
number of
common shares
used in the
determination
of:
Basic
earnings
per share 14,537,041 14,523,016 14,533,097 14,516,869
========== ========== ========== ==========
Diluted
earnings
per share 14,611,601 14,543,485 14,583,250 14,538,785
========== ========== ========== ==========

SOURCE Consolidated Water Co. Ltd.

Frederick W. McTaggart, President and CEO, +1-345-945-4277, or David W.
Sasnett, Executive Vice President and CFO, +1-954-427-6283, info@cwco.com,
both of Consolidated Water Co. Ltd.; or Investor Relations Counsel, RJ Falkner
& Company, Inc., 1-800-377-9893, info@rjfalkner.com, for Consolidated Water
Co. Ltd.