China Hydroelectric Corp Files Complaint Against Insurgent Group In Federal Court

China Hydroelectric Corp announced that on September 10, 2012, the Company filed a complaint in the United States District Court for the Southern District of New York (the Court), naming as defendants NewQuest Capital Management (Cayman) Limited, NewQuest Asia Fund I (G.P.) Ltd., NewQuest Asia Fund I, L.P., CPI Ballpark Investments Ltd, Swiss Re Financial Products Corp., China Environment Fund III, L.P., China Environment Fund III Management, L.P., China Environment Fund III Holdings Ltd., Donald C. Ye, Shelby Chen, Michael Li, Larry Zhang, Ian Zhu, Aqua Resources Asia Holdings Limited, Aqua Resources Fund Limited, FourWinds Capital Management, Abrax, Abrax Limited, IWU International Ltd. (collectively the Insurgent Group). The Complaint alleges that the Insurgent Group violated Section 13(d) of the Securities Exchange Act of 1934, as amended, by failing to file on a timely basis accurate disclosures required under the federal securities laws. Specifically, the Complaint alleges that the Insurgent Group has been secretly planning to take control of the Company for an extended but unknown period of time. The Complaint alleges that the Insurgent Group violated the federal securities laws by failing to make timely disclosure of their plans and by making misleading disclosures and omitting material facts in the disclosures they finally made to shareholders of the Company and the Securities and Exchange Commission.