Dec 28, 2000

Consolidated Water Agrees to Acquire Seawater Conversion Company in Belize

Consolidated Water Co. Ltd., which is involved in the development and operation of seawater conversion plants and water distribution systems in areas of the world where natural supplies of drinking (i.e., potable) water are scarce, announced it has entered into an agreement to acquire 100 percent of SeaTec Belize Limited for an undisclosed price.

SeaTec Belize Limited, which is currently owned by SeaTec Systems, Inc., operates a reverse osmosis seawater conversion plant on Ambergris Caye in Belize, Central America. The plant supplies water under contract to, and for distribution by, the Water & Sewerage Authority of the Government of Belize.

Belize, with a population of approximately 210,000, is a Central American country which is located on the Caribbean Sea and is bordered by Mexico to the north and Guatemala to the west and south. Ambergris Caye is the largest of the approximately 200 islands located off the mainland of Belize, and its economy has benefited from the growing popularity of the island as a resort and scuba diving destination for American travelers.

"The planned acquisition of SeaTec Belize Limited is consistent with our strategy of expanding outside of our traditional Caymanian base of operations," stated Jeffrey Parker, Chairman and Chief Executive Officer of Consolidated Water Co. Ltd. "Our expertise in the operation of reverse osmosis seawater conversion plants is consistent with the facility in Belize, and we expect the acquisition to be immediately accretive to Consolidated's earnings per share."

Consolidated Water Co. Ltd. intends to develop and operate seawater conversion plants and water distribution systems in areas of the world where naturally-occurring supplies of potable water are scarce or nonexistent. It currently operates a public water utility in certain areas of the Cayman Islands under a 20-year exclusive license from the Government of the Cayman Islands. The Company has signed contracts for an operation in the Commonwealth of the Bahamas.

SOURCE: PRNewswire