Cascal N.V. Commences Legal Action and Seeks Injunctive Relief and Damages in Response to Proposed Sembcorp Tender Offer

LONDON, April  30 /PRNewswire-FirstCall/ -- Cascal N.V. (NYSE: HOO) today commenced an action in the United States District Court for the Southern District of New York claiming violations of U.S. securities laws and breach of confidentiality agreements.  The lawsuit seeks injunctive relief and recovery of damages.

"The structure of the proposed Sembcorp tender is coercive and seeks to diminish the rights of shareholders to participate in Cascal's growth and share value appreciation. The offering price is inadequate and under the proposed terms would result in an illiquid market for our publicly traded common shares. Accordingly, the Sembcorp bid is unacceptable," said Michael Wager, spokesman for Cascal.

As indicated in a previous communication (April 26, 2010), the Board of Directors of Cascal rejects Sembcorp's proposed tender offer as inadequate, coercive and not in the best interest of all shareholders.

Mr. Wager concluded, "Cascal's continued independence is in the best interest of shareholders and Cascal intends to vigorously defend this position.  To assist us in these efforts, we have retained Janney Montgomery Scott LLC, one of the leading investment banking and advisory firms, as our financial advisors."

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 within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements 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.