Hyflux Limited (“Hyflux”) and Hyflux Water Trust Management Pte Ltd (acting as Trustee-

Manager of Hyflux Water Trust) (“Trustee-Manager”), (collectively “the Companies”) are

pleased to make this joint announcement.

As provided for under the Hyflux Water Trust (“HWT”) Prospectus dated 23 November 2007,

Hyflux has granted the Trustee-Manager certain rights of first offer, rights of first refusal and

rights to match in respect of water-related infrastructure assets (“Qualifying Projects”) pursuant

to the Deed of Right of First Offer and Right of First Refusal dated 23 November 2007

(“ROFOAR Deed”). The Companies are delighted to confirm that Hyflux has, in accordance

with the terms and conditions of the ROFOAR Deed, offered a portfolio of Qualifying Projects

in the People’s Republic of China to the Trustee-Manager for acquisition. The portfolio of

Qualifying Projects comprises:-

1. One Wastewater Treatment Plant with a design capacity of 10,000m3/day, situated in

Huishan District Wuxi City, Jiangsu Province;

2. Two Water Treatment Plants with a combined design capacity of 60,000m3/day, situated

in Xuecheng District, Shandong Province;

3. One Water Treatment Plant with a design capacity of 40,000m3/day, situated in Gong

Changling District, Liaoyang City, Liaoning Province;

4. One Wastewater Treatment Plant with a design capacity of 30,000m3/day,situated in

Minguang City, Anhui Province;

5. One Wastewater Treatment Plant with a design capacity of 30,000m3/day and two Water

Treatment Plants with a combined design capacity of 100,000m3/day, all situated in

Guanyun County, Lianyungang City, Jiangsu Province; and

6. One Wastewater Treatment Plant with a design capacity of 20,000m3/day, situated in

Rudong County, Yangkou City, Jiangsu Province.

The abovementioned Qualifying Projects have a combined design capacity of 290,000m3/day

and an approximate value of SGD180 million. At the time of the Initial Public Offering (“IPO”),

HWT acquired assets with a combined design capacity of 445,000m3/day.

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The Trustee-Manager will consider acquiring projects which meet its investment criteria, namely

the projects are accretive to HWT and can provide long-term, regular and predictable cashflows.

The Trustee-Manager also expects to acquire projects which have commenced commercial

operations at the time of acquisition. The acquisitions may therefore be executed in tranches.

The Trustee-Manager will conduct due diligence on the Qualifying Projects shortly, and HWT

unitholders’ approval will be sought for the acquisition of the projects. Similarly, Hyflux will

seek shareholders approval to the divestment in due course.

CEO of the Trustee-Manager, Mr Saud Siddique, commented: “HWT’s right to acquire, under

the ROFOAR Deed, water assets which have been developed or acquired and refurbished by

Hyflux, enables HWT to strategically grow the size of HWT’s portfolio. The ROFOAR pipeline

has increased by 45% from an initial capacity of 760,000m3/day at time of the IPO. We are

delighted that Hyflux has now made available to HWT the first tranche of water assets under the

ROFOAR pipeline.”

HWT currently has no gearing, and the Trustee-Manager proposes to fund any acquisition

primarily through debt.

Commenting on the development, Hyflux Group CEO and President, Ms Olivia Lum said: “The

completion of the sale and purchase of the Qualifying Projects will be further evidence of Hyflux

stated strategy of monetizing suitable water assets and redeploying its capital and at the same

time, preserve and enhance the long-term cash generating capability of HWT’s portfolio of