Cascal Announces Update on Legal Proceedings

LONDON, May 20 /PRNewswire-FirstCall/ -- Cascal N.V. (NYSE: HOO) (The Company) announced today that the United States District Court for the Southern District of New York denied its application for a preliminary injunction.  

"Although we are disappointed, the court's ruling presents us with an opportunity to potentially challenge the offer once it has been officially declared.  We are also heartened the court acknowledged that shareholders may have their own legal remedy.  While we respect the court's decision, our commitment is to maximizing shareholder value and we are currently reviewing other legal options at our disposal," stated Michael Wager, Cascal Spokesperson.

Mr. Wager continued, "Underlying our resolve to maximize shareholder value is the fact that we have a proven history of delivering superior operational and financial excellence.  If given the opportunity, we expect to continue to deliver these tenets through our commitment to building our international portfolio both organically and through acquisition."

Since Cascal's initial public offering in January 2008, management has grown the Company's water portfolio through the addition of:  Yancheng (China), April 2008; Servicomunal and Servilampa (Chile), June 2008; Zhumadian (China), July 2008; and, Antigua, December 2009.  

"We currently maintain a pipeline of opportunities in water, wastewater and desalination services in China, Chile, the Caribbean Basin, Europe and India.  We hope to realize one or more of these opportunities prior to the end of our fiscal year in March 2011," Mr. Wager concluded.  

As stated in previous communications, the Board of Directors of Cascal rejects Sembcorp's proposal as financially and structurally inadequate and coercive, and recommends that Cascal common shareholders take no action to respond to a below market tender that Sembcorp Industries Ltd said it intends to make.

About Cascal N.V.

Cascal provides water and wastewater services to its customers in eight countries: the United Kingdom, South Africa, Indonesia, China, Chile, Panama, Antigua and The Philippines. Cascal's customers are predominantly homes and businesses representing a total population of approximately 4.7 million.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION LEGEND:

SECURITY HOLDERS SHOULD READ CASCAL N.V.'S SOLICITATION/RECOMMENDATION STATEMENT WHEN IT IS AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. INVESTORS MAY OBTAIN THE RECOMMENDATION AND OTHER FILED DOCUMENTS FREE OF CHARGE AT THE COMMISSION'S WEB SITE (www.sec.gov) AS WELL AS DIRECTLY FROM CASCAL N.V. BY CONTACTING JEFFREY GOLDBERGER, KCSA STRATEGIC COMMUNICATIONS, 880 THIRD AVENUE, NEW YORK, NEW YORK 10022, +1 212.896.1249, [email protected].

Learn more at www.cascal.co.uk

Forward-looking statements

This release contains forward-looking statements that are not guarantees of future performance. There are important factors, many of which are outside of our control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including: general economic business conditions, unfavorable weather conditions, housing and population growth trends, changes in energy prices and taxes, fluctuations with currency exchange rates, changes in regulations or regulatory treatment, changes in environmental compliance and water quality requirements, availability and the cost of capital, the success of growth initiatives, acquisitions and our ability to successfully integrate acquired companies and other factors discussed in our filings with the Securities and Exchange Commission, including under Risk Factors in our Form 20-F for the fiscal year ended March 31, 2009, filed with the SEC on July 1, 2009. We do not undertake and have no obligation to publicly update or revise any forward-looking statement.

SOURCE Cascal N.V.