Investee Company Update

4 Feb 2008 14:46

London Asia Chinese Private Equity04 February 2008 4 February 2008 London Asia Chinese Private Equity Fund Limited ("LACPEF") Investee Companies Updates LACPEF, the AIM traded, China focused investment fund, is delighted to announceupdates from its two Singapore listed water investee companies, UnitedEnvirotech Ltd ("UE" or the "Company") and Asia Water Technology Ltd ("AsiaWater" or the "Group"). United Envirotech - eight new projects; third quarter results The Company released a strong set of the third quarter results for the periodended 31 December 2007, with growth across all sectors of the business. Duringthe three month period, revenue was up 109%, compared to the same period in2006, to £4.9 million, with profit before tax increasing to £0.9 million (2006:loss). UE has secured a £7.0 million engineering contract to modify, upgrade and expandon the existing wastewater treatment plant at Taixing Chemical Industrial Parkat Taixing City, Jiangsu Province, China. The first phase of the projectinvolves upgrading and converting the 20,000 m3/day wastewater treatment plantto UE's advanced Membrane Bioreactor (MBR) system. Following successfulcompletion of the first phase, UE will construct a 40,000 m3/day wastewatertreatment plant using MBR technology. The Company was awarded a £4.2 million Build-Operate-Transfer ("BOT") contractto build a 50,000 m3/day membrane-based wastewater treatment and recyclingfacility from Mianyang Municipal Government in Sichuan Province, China. Theproject has a concessionary period of 30 years and will be undertaken by aproject company in which UE owns 60%. Mianyang city is one of three citiesgranted the prestigious status of a "water conservation area". It was selectedby the Chinese Central Government to serve as a model to demonstrateself-sustained water use through effective water re-use. Mianyang is wellrecognized as a high-tech research and development base for China. The cityhosts one of the research bases for nuclear science and rocket science. UE's advanced membrane-based water treatment system has been selected by ChinaPetrochemical Corporation (Sinopec) Group for five of its six demonstrationplants. The projects were awarded independently by Sinopec's Maoming, Wuhan,Xian, Zhijizhuang and Guangzhou branches though a series of bidding andevaluation processes where UE was selected over both local and internationalwater treatment companies. The Company has also secured an industrial wastewater treatment project inSingapore from Semcorp Industries Ltd ("SUT") using MBR technology. UE hassuccessfully completed two water-recycling projects, utilizing its advancedmembrane technology, for SUT in the past two years. Asia Water - Acquisition Asia Water has acquired for £0.5 million in cash the 20% stake in Taizhou KaidiWaste Water Treatment Co Ltd ("Taizhou"), a wastewater treatment servicesprovider. Taizhou is located in Linghai City, Zhejiang Province, China and wasset up to undertake a BOT wastewater treatment project for a period of 20 years.Taizhou will build, operate and transfer a water treatment plant with anestimated treatment capacity of 50,000 tonnes of industrial wastewater per day.Once operational, Taizhou will be treating industrial wastewater generated bythe Zhejiang Pharmaceutical Park located within Linghai City. For further information please visit www.lacpefund.com, or contact: John West/Andrew Dunn Cecilia Wong Hugh Field Tavistock Communications London Asia Ltd. Collins Stewart Europe Ltd Tel: 020 7920 3150 Tel: +852 2251 8373 Tel: 020 7523 8000 cecilia.wong@londonasia.com About Asia Water Technology Ltd. Singapore stock market listed AWT provides total engineering solutions for waterpurification and wastewater treatment systems. Its business is primarilyconducted through its subsidiary in China, which owns its own patented coretechnologies and works closely with leading technology partners in theinternational and local water treatment arena. For more information on theGroup, please visit: www.asiawatertech.com. About United Envirotech Ltd Singapore main board listed United Envirotech Ltd specializes in water treatmentand reclamation using advanced membrane technologies and provides environmentalengineering solutions to a wide range of customers in the chemical,petrochemical, pharmaceutical, and wastewater treatment industries. For moreinformation on the Company, please visit: www.unitedenvirotech.com. This information is provided by RNS The company news service from the London Stock Exchange