CASCAL, A LEADING PROVIDER OF WATER AND WASTEWATER SERVICES

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shareholdingIrrevocable undertaking by majority shareholder, Biwater to tender its 58.4%

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shares have been validly tendered and not withdrawn or US$6.40 per share, if at

least 17,868,543, but less than 80% of the outstanding common shares have been

validly tendered and not withdrawnOffer price of US$6.75 per share, if at least 80% of the outstanding common

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SINGAPORE, April 26, 2010 –

wholly owned subsidiary, Sembcorp Utilities Pte Ltd (Sembcorp Utilities) has entered into a

tender offer and stockholder support agreement with Biwater Investments Limited (Biwater), to

acquire Biwater’s 17,868,543 shares of Cascal N.V. (Cascal) (representing approximately

58.4% of the outstanding common shares of Cascal), a New York Stock Exchange-listed

company and leading provider of water and wastewater services, and to launch a tender offer to

acquire all of the outstanding common shares of Cascal.

Tang Kin Fei, Group President & CEO of Sembcorp Industries said, “This acquisition will

transform Sembcorp into a global water service provider and provide the platform for the Group

to accelerate our growth in the future. We will have water and wastewater facilities in 31

operating locations in 11 countries around the world, and our water capacity in operation andMajor milestone for Sembcorp in the fast-growing water sectorSembcorp Industries Ltd (Sembcorp) today announces that its

PRESS RELEASE

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under development globally will increase by 50% from four million to close to six million cubic

metres per day.

“We are excited about the growth prospects that Cascal brings to Sembcorp. Cascal’s

experience in the municipal water segment and strong market knowledge from its international

operations are excellent complements to Sembcorp’s strong operational and technical expertise

in industrial water and wastewater as well as in developing and operating water reclamation and

large scale desalination plants.”

Commenting on the transaction, Lawrence Magor, Chief Executive Officer, Biwater, said,

“Following an extensive process to find our preferred buyer for our stake in Cascal, this

transaction will allow Biwater to reduce significantly its debt, whilst providing Cascal with a new

shareholder which is well placed to support the continued growth of the company."

The acquisition is expected to be accretive to earnings starting from the second year after the

acquisition. Transaction costs will be incurred within the first year of acquisition.

About Cascal

Cascal is a leading provider of water and wastewater services. The company operates

internationally in

Africa, Indonesia, China, Chile, Panama, Antigua and the Philippines) and four continents with a

growing customer base of homes and businesses that represent a total population of

approximately 4.7 million people. Cascal is currently one of four companies in the running to be

named the Water Company of the Year in the Global Water Awards 2010. In 2009, its whollyowned

UK subsidiary was ranked the UK’s number one water company for overall performance

in service and delivery by the country’s water services regulator. In addition, Cascal’s South

African operations were amongst only 5% of the country’s water networks to be given “Blue

Drop” status by the Department of Environment and Water Affairs, in recognition of their

provision of high quality water services.

As reported in Cascal’s annual report for the financial year ended 31 March 2009 (prepared

based on Dutch GAAP), Cascal’s revenue, earnings before interest, tax, depreciation and

amortisation (EBITDA) and profit after tax and minority interest (PATMI) were approximately21 operating locations across eight countries (the United Kingdom (UK), South

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US$163.4 million, US$59.1 million and US$17.9 million respectively (equivalent to

approximately S$228.8 million, S$82.7 million and S$25.1 million respectively). Cascal’s net

debt, as reported in Cascal’s interim report for the three month period ended 31 December

2009, was US$210.3 million (equivalent to approximately S$294.4 million).

Strategic Rationale

Sembcorp is a leader in the provision of energy, water and on-site logistics and services, and

Singapore’s largest water management company. The acquisition of Cascal is expected to

accelerate the growth of Sembcorp’s water business, growing the capacity of Sembcorp’s water

and wastewater facilities by 50% from four million cubic metres per day to close to six million

cubic metres per day.

Cascal’s experience in the municipal water segment and market knowledge from its

international operations is expected to provide Sembcorp with additional competencies to

complement its strong operational and technical expertise in the industrial water and wastewater

sector, as well as its track record in developing and operating water reclamation and large scale

desalination plants. The acquisition is expected to transform Sembcorp’s water business,

extending the business’ global footprint to 31 operating locations worldwide across 11 countries.

In addition, Cascal has a proven track record of expansion and growth and has demonstrated its

expertise in evaluating and implementing municipal water projects, as well as negotiating and

operating water supply concessions.