United Water

completed

United Water Corporation (“the Company” or “United Water”) is a holding company registered in the Cayman Islands that has invested in five water utilities and waste water treatment plants in China. The plants include United Water (Suqian) Co. Ltd. in Jiangsu Province, United Water (Xianning) Co. Ltd. and United Yulong Water (Suizhou) Co. Ltd. in Hubei Province, Tongxiang Sanho Water Co. Ltd. in Zhejiang Province and Tuo Ke Tuo United Water Co. Ltd. in Inner Mongolia. The total contracted capacity of the plants is about 640,000 metric tons per day serving a total population of about 1.3 million residential users with potable water and 236 industrial clients with industrial wastewater treatment services in two industrial parks. The Company has an investment plan of about US$35 million in 2011-2012 to enable four water and waste water treatment plants to continue their expansion as well as to upgrade Tuo Ke Tuo United Water Co. Ltd. to meet existing regulatory requirements. The total contracted capacity of the plant expansions is estimated to be about 180,000 metric tons per day at the end of 2012. It is noted that the investment plan in 2011-2012 is part of an ongoing plan beyond 2012 to continue the expansion of certain plants and the pipeline network to meet expected increasing demands.