Year-to-date Fiscal 2009 Results:

Revenue from continuing operations for the nine months ended December 31, 2008 increased by 6.5% to $125.6 million, compared to $118.0 million for the same period last year. The $7.6 million increase was the result of an about $10.5 million contribution by the historical portfolio (through a combination of rate increases, additional customers and higher volumes) and a $7.9 million contribution by the new acquisitions, offset by a $10.8 million effect of translation of revenues into US dollars.

Revenue in China almost doubled, increasing by $7.2 million or 93%, compared to the same period last year, of which $6.2 million was the result of the acquisitions of the Yancheng joint venture on April 29, 2008 and the Zhumadian subsidiary on July 23, 2008, with the remainder due to a combination of rate and volume increases in our pre-existing operations in China and $0.7 million due to favorable exchange rate movements.

Revenue in Chile increased by $1.9 million or 37%, compared to the same period last year, of which $1.1 million was contributed by the Servicomunal and Servilampa businesses acquired during the period, and $1.1 million was due to a combination of rate increases and higher volumes sold in our pre-existing operations in Chile, offset by $0.3 million due to exchange rate movements. The Servicomunal and Servilampa businesses, acquired on June 27, 2008, are consolidated into the company’s results with a three month lag due to non-coterminous year ends.

Revenue in Indonesia increased by $1.5 million or 17%, compared to the same period last year; primarily a result of $2 million in additional revenue due to a 20% rate increase implemented in December 2007, together with higher demand for water caused by continued population growth, offset by $0.6 million due to exchange rate movements.

Revenue in Panama increased by $1.5 million or 23%, compared to the same period last year, due to $1 million arising from rate increases that took effect on April 1, 2008 and September 1, 2008 together with $0.5 million of additional revenue recognized this year following the delayed approval of a rate increase applied for in May 2007.

Revenue in South Africa decreased by $0.2 million or 1.4%, compared to the same period last year. At constant exchange rates, revenue in South Africa increased by $2.4 million or 18% as a result of a 10% rate increase implemented by the company’s Nelspruit subsidiary and increases of 6% and 9% for water and sewerage rates, respectively, implemented by Siza Water, which came into effect in July 2008, along with continued growth in the number of connections. This revenue increase was offset by $2.6 million due to exchange rate movements.

Revenue in the UK decreased by $4.2 million or 5.9%, compared to the same period last year. At constant exchange rates, revenue in the UK increased by $3.8 million or 6.0% primarily due to the effect of a scheduled rate increase of 3.68%, together with a $2.3 million increase from the non-regulated business. This revenue increase was offset by $8.0 million due to exchange rate movements.

For the nine months ended December 31, 2008, EBITDA from continuing operations decreased by $1.9 million or 3.9% at current exchange rates, and increased by $2.5 million or 5.8% at constant exchange rates, compared to the same period last year. Of the $2.5 million increase at constant exchange rates, about $2.5 million was contributed by new projects and $1.9 million came from organic growth of the historical portfolio, offset by additional corporate overhead. The EBITDA increase was essentially contributed by the company’s operations in China (+$2.4 million), Indonesia (+$1.4 million), South Africa (+$1.0 million), Chile (+$0.6 million) and Panama (+$0.4 million), partially offset by increased overhead (-$1.9 million) and a reduction in the UK (-$1.5 million) due notably to higher electricity prices. The increased corporate overhead is mainly the result of higher costs due to tax and legal advisors, insurance and the board of independent directors. The EBITDA increase was offset by $4.4 million due to exchange rate movements. Please read Use of Non-GAAP Financial Measures for a description of EBITDA.

Commenting on the company’s results, Stephane Richer, Cascal chief executive officer, said, In spite of the challenges of a global economic slowdown, I am very pleased with the continued progress being made by our Group, and remain positive about our ability to deliver continued growth. I am particularly satisfied with the underlying growth trends that the portfolio has once again delivered although these have been somewhat masked by unusually large exchange rate movements during the period. At constant exchange rates, we have achieved strong revenue growth and EBITDA growth in all our geographical segments other than in the UK where revenue has increased by 6% and EBITDA decreased by 4.6%. The EBITDA reduction in the UK is largely driven by increased costs of electricity which we expect will reduce significantly over the next few months. We are committed to working through the current economic turmoil by focusing on the strengths of our operations and are continuing to prove that we can grow in a difficult environment.

Overall, net financial income and expense from continuing operations improved by $16.2 million for the nine months ended December 31, 2008, compared to the same period last year. This result was comprised of an $11.9 million favorable movement in exchange rate results, combined with a $4.3 million decrease in net interest expense. The exchange rate results are principally the result of revaluing a British Pound-denominated current account balance outstanding at December 31, 2008 between the company and its subsidiary, Cascal Services Limited. The decrease in net interest expense is mainly due to the repayment of borrowings in February 2008 out of the proceeds of the initial public offering, which have been partially and progressively replaced with cheaper borrowings from the company’s revolving loan facility.

For the nine months ended December 31, 2008, net profit from continuing operations was $16.9 million, or $0.55 per share, compared to net profit of $7.6 million, or $0.35 per share, for the same period in the prior year. Including discontinued operations, net profit was $17 million, or $0.56 per share, compared to $0.41 per share for the same period in 2007.

The effective tax rate incurred by continuing operations was 38.9% compared to 43.9% in the same period last year. The UK project company incurred a charge to deferred tax of $2.9 million, or two thirds of a total charge of $4.5 million for the year ending March 31, 2009, with respect to a change in UK tax legislation that was introduced on July 21, 2008. Without this one-time charge, the effective tax rate for the period falls to about 29.0%. In addition, a one-time adjustment in the form of a $0.3 million charge was made to the deferred tax position of the company’s Santiago based regulated operations in respect of its water rights portfolio. The other significant factor impacting the effective tax rate is the extent to which the parent company incurs costs in excess of its taxable income in The Netherlands. During the period ended December 31, 2008 the parent company recorded significant taxable income with respect to favorable movements in foreign exchange rates, which has been applied against tax losses brought forward. This, in turn, had a favorable impact on the overall effective tax rate for the period.

The company’s operating cash flow increased by $8.7 million to $41.6 million during the nine months ended December 31, 2008 relative to the prior year’s comparable period.

As of December 31, 2008, the consolidated balance sheet shows cash and cash equivalents of $37.0 million.