LONDON, June 17 /PRNewswire/ --

- Revenue increased to US$160.6 million, EBITDA increased to US$62.3 million, net profit increased to US$11.6 million - Year-over-year revenue from continuing operations up 33% to US$157.8 million - Year-over-year EBITDA from continuing operations up 17% to US$61.8 million - Year-over-year net profit from continuing operations up 29% to US$9.9 million

Cascal N.V. (NYSE: HOO) (the "Company"), a leading provider of water and wastewater services in seven countries, today announced unaudited financial results for fiscal year ended March 31, 2008 and the fourth quarter ended March 31, 2008. Cascal N.V. results are presented in U.S. dollars.

Results for Fiscal Year Ended March 31, 2008

For the year ended March 31, 2008, revenue increased 32% to US$160.6 million, EBITDA increased 17% to US$62.3 million and net profit increased 45% to US$11.6 million.

Revenue from continuing operations for the year increased 33% to US$157.8 million, compared to US$118.6 million for the same period last year. Of the US$39.2 million increase, approximately US$21.0 million was attributable to new projects. The remaining US$18.2 million improvement was achieved mainly as a result of rate increases, the addition of new customers, higher volumes supplied and the effect of exchange rate movements within the Company's historical portfolio.

-- Revenue in the UK increased by US$19.1 million or 25%, compared to the same period last year, as a result of an US$8.5 million contribution from the February 2007 acquisition of Pre-Heat, together with US$4.2 million additional revenue from the regulated business, US$1.7 million additional revenue from the existing non-regulated business and US$4.7 million due to exchange rate movements. -- Revenue in South Africa increased by US$7.9 million or 57%, compared to the same period last year, as a result of a US$5.9 million contribution from the May 2007 acquisition of Siza Water, together with US$2.3 million additional revenue from the Nelspruit operation due to rate increases and continued growth in the customer base, offset by US$0.3 million of exchange rate movements. -- Revenue in China increased by US$7.1 million due to the inclusion of only four and a half months of activity during the year ended March 2007, together with continuing growth in demand.

For the year ended March 31, 2008, EBITDA from continuing operations increased 17% to US$61.8 million, compared to US$52.7 million for the year ended March 31, 2007. Of the US$9.1 million increase, approximately US$5.0 million was attributable to new projects with the remaining US$4.1 million coming from a US$6.0 million higher contribution from the historical portfolio and exchange rate movements, offset by US$1.9 million of additional corporate overhead. Please read "Use of Non-GAAP Financial Measures" for a description of EBITDA and a reconciliation of net income to EBITDA.

Commenting on the Company's fiscal year-end results, Stephane Richer, Cascal Chief Executive Officer, stated, "According to plan, we have delivered strong organic growth and implemented a very successful acquisition strategy. Our approach is to position Cascal to continue to benefit from positive population growth trends, which in turn allows us to provide the necessary services to facilitate access to an increasingly scarce resource. Our business model is resilient to potential global economic slowdowns, and we remain optimistic about our ability to continue to drive additional organic and acquisition-based growth."

Overall, net financial income and expense from continuing operations decreased by US$0.9 million for the year ended March 31, 2008, compared to the same period last year. This result was comprised of US$3.6 million of higher interest expense due mainly to increased British Pound LIBOR rates and U.K. retail price inflation (which affects the Company's regulated business in the U.K.), offset by a US$4.5 million improvement in exchange rate results due mainly to the strengthening of the U.S. Dollar relative to the British Pound toward the end of fiscal year 2008.

The consolidated effective rate of tax incurred by continuing operations for the year ended March 31, 2008 was 46.4%, compared with 44.7% for the year ended March 31, 2007. The effective tax rates are significantly higher than the enacted tax rate in The Netherlands of 25.5% and are principally a consequence of tax losses incurred in The Netherlands that could not be utilized during the period due to insufficient taxable income arising in that country.

For the year ended March 31, 2008, net profit was US$11.6 million, or US$0.49 per share, compared to net profit of US$8.0 million, or US$0.37 per share for the same period in 2007. For the year, net profit from continuing operations was US$9.9 million, or US$0.42 per share, compared to US$7.7 million, or US$0.36 per share, during the same period last year.

As of March 31, 2008, the Company had cash and cash equivalents of US$54.4 million.

Results for Fourth Quarter to March 31, 2008

For the three months ended March 31, 2008, revenue from continuing operations increased 19% to US$39.8 million, compared to US$33.5 million for the same period last year. Of the US$6.3 million increase, approximately US$2.5 million was attributable to new projects. In common with the full year-over-year movement, the remaining US$3.8 million improvement was achieved through a combination of rate increases, the addition of new customers, higher volumes supplied and the effect of exchange rate movements within the Company's historical portfolio.

EBITDA from continuing operations for the quarter ended March 31, 2008 decreased 6% to US$14.2 million, compared to US$15.1 million for the quarter ended March 31, 2007. The comparability of quarterly results has been significantly affected by one-time events such as US$0.7 million of IPO completion bonuses, US$0.3 million provided against receivables in Indonesia and US$0.1 million adjustment to operating costs in Panama during the fourth quarter of fiscal year 2008, together with the effect of US$0.3 million release of provision for the cost of raw water in Nelspruit and US$0.2 million release of staff costs accruals during the fourth quarter of fiscal year 2007. Excluding the impact of these one-time events, the EBITDA for the quarter ended March 31, 2008 shows an increase of US$0.7 million compared to the corresponding quarter of the previous year.

Guidance for Fiscal Year ending March 31, 2009

For the fiscal year ending March 31, 2009, the Company maintains its previously stated annual guidance of revenue between US$179 million and US$184 million and of EBITDA between US$68 million and US$71 million.

Recent Business Highlights

-- On June 16, 2008, Cascal announced that its China Water subsidiary had signed an agreement to acquire a 51 percent stake in an equity joint venture in Zhumadian City, Henan Province, China. The new joint venture company, Zhumadian China Water Company, which partners China Water with the Zhumadian Bangye Water Group, is expected to formally commence operations within the next few weeks, subject to regulatory approvals. Over the initial three years, Cascal expects the new joint venture company to achieve revenues rising from approximately US$6 million to approximately US$13 million and EBITDA margins improving from slightly below 50 percent to approximately 60 percent. Cascal will fund its 87 percent share of this acquisition from its corporate debt facility and the remainder will be funded by the minority shareholder of China Water. -- On June 12, 2008, Cascal entered into an agreement with HSBC whereby its existing revolving credit facility was increased from US$20 million to US$60 million. There is also the option, acting in conjunction with HSBC and a third party bank, to increase the credit facility to US$75 million. -- On May 28, 2008, Cascal announced that its 50% joint venture, PT Adhya Tirta Batam, had committed an additional investment to construct a new water treatment plant in Duriangkang, located on Batam Island in Indonesia. The joint venture had received approval for an approximate 20% tariff increase, which is expected to significantly improve the joint venture's operating cash flow in fiscal year 2009. The new construction is the third stage in the development of an integrated potable water system and follows the completion of earlier modules built in 2001 and 2004. The new treatment plant will have a capacity of 11.5 million gallons per day, equivalent to a population of almost 200,000, and is expected to commence operations in April 2009. -- On April 29, 2008, Cascal completed its acquisition of a 49 percent stake in Yancheng China Water Company. The new joint venture company, Yancheng China Water Company, which partners Cascal with the Municipality of Yancheng, formally commenced operations on May 1, 2008, and is contracted for a period of 30 years. Over the initial 3 years, Cascal expects the new joint venture company to achieve revenues rising from approximately US$9.5 million to US$11.7 million and EBITDA margins improving from approximately 35% to greater than 40%.

Conference Call

The Company will host a conference call at 9 a.m. ET on June 18, 2008. On the call, Stephane Richer, CEO of Cascal, and Steve Hollinshead, CFO, will discuss the Company's results, and review operational highlights and other business developments. The Company invites you to participate on the call at the following telephone numbers: +1-888-889-5602 (local), +1-973-582-2737 (international), (0800)-032-3836 (UK Freephone). The access code for all callers is 50463866. The call will also be available via webcast at www.cascal.co.uk. Please allow extra time prior to the call to visit the site and to download any necessary software to listen to the Internet broadcast. An online archive of the webcast will be available on the Company's website for 30 days following the call. A replay of the call will be available from June 18, 2008 at 12.00 p.m., ET, through July 18, 2008 at 11.59 p.m., ET. To access the replay, please call +1-800-642-1687 (local) or +1-706-645-9291 (international) and enter the following code: 50463866.

About Cascal N.V.

Cascal provides water and wastewater services to its customers in seven countries: the United Kingdom, South Africa, Indonesia, China, Chile, Panama and The Philippines. Cascal's customers are predominantly homes and businesses representing a total population of approximately 3.6 million.

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 Prospectus for our initial public offering. We do not undertake and have no obligation to publicly update or revise any forward-looking statement.

Use of Non-GAAP Financial Measures

In evaluating its business, the Company uses EBITDA as a supplemental measure of its operating performance. The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization. The term EBITDA is not defined under generally accepted accounting principles, or GAAP, and is not a measure of operating income, operating performance or liquidity presented in accordance with GAAP. EBITDA has limitations as an analytical tool, and when assessing the Company's operating performance, investors should not consider EBITDA in isolation, or as a substitute for net income (loss) or other consolidated income statement data prepared in accordance with GAAP.

Consolidated Statements of Income Year ended March 31, 2008 Amounts, except shares Continuing Discontinued and per share amounts, operations operations Total expressed in thousands of (Unaudited) (Unaudited) (Unaudited) USD Revenue 157,777 2,865 160,642 Operating Expenses Raw and auxiliary materials and other external costs 31,629 689 32,318 Staff costs 33,214 673 33,887 Depreciation and amortization of intangible and tangible fixed assets and negative goodwill 22,740 46 22,786 Profit on disposal of intangible and tangible fixed assets (749) - (749) Other operating charges 30,391 1,000 31,391 Incremental offering-related costs 767 - 767 117,992 2,408 120,400 Operating Profit 39,785 457 40,242 Gain on disposal of subsidiary - 1,691 1,691 Net Financial Income and Expense Exchange rate results (2,267) (114) (2,381) Interest income 2,839 96 2,935 Interest expense (20,165) (73) (20,238) (19,593) (91) (19,684) Profit before Taxation 20,192 2,057 22,249 Taxation (9,359) (357) (9,716) Profit after taxation 10,833 1,700 12,533 Minority Interest (945) - (945) Net Profit 9,888 1,700 11,588 Earnings per share - Basic and Diluted 0.42 0.07 0.49 Weighted average number of shares - Basic and Diluted 23,329,982 23,329,982 23,329,982

Year ended March 31, 2007 Amounts, except shares Continuing Discontinued and per share amounts, operations operations Total expressed in thousands of (Unaudited) (Unaudited) USD Revenue 118,567 3,136 121,703 Operating Expenses Raw and auxiliary materials and other external costs 20,089 701 20,790 Staff costs 22,938 660 23,598 Depreciation and amortization of intangible and tangible fixed assets and negative goodwill 17,932 48 17,980 Profit on disposal of intangible and tangible fixed assets (989) - (989) Other operating charges 22,052 1,258 23,310 Incremental offering-related costs 809 - 809 82,831 2,667 85,498 Operating Profit 35,736 469 36,205 Gain on disposal of subsidiary - - - Net Financial Income and Expense Exchange rate results (6,778) (4) (6,782) Interest income 2,652 35 2,687 Interest expense (16,380) (17) (16,397) (20,506) 14 (20,492) Profit before Taxation 15,230 483 15,713 Taxation (6,806) (138) (6,944) Profit after taxation 8,424 345 8,769 Minority Interest (753) - (753) Net Profit 7,671 345 8,016 Earnings per share - Basic and Diluted 0.36 0.01 0.37 Weighted average number of shares - Basic and Diluted 21,849,343 21,849,343 21,849,343

Consolidated Statements of Income Three months ended March 31, 2008 Amounts, except shares Continuing Discontinued and per share amounts, operations operations Total expressed in thousands of (Unaudited) (Unaudited) (Unaudited) USD Revenue 39,797 697 40,494 Operating Expenses Raw and auxiliary materials and other external costs 8,540 156 8,696 Staff costs 8,005 61 8,066 Depreciation and amortization of intangible and tangible fixed assets and negative goodwill 5,712 7 5,719 Profit on disposal of intangible and tangible fixed assets (675) - (675) Other operating charges 8,338 181 8,519 Incremental offering-related costs 692 - 692 30,612 405 31,017 Operating Profit 9,185 292 9,477 Gain on disposal of subsidiary - 396 396 Net Financial Income and Expense Exchange rate results (356) (101) (457) Interest income 1,482 22 1,504 Interest expense (4,804) (49) (4,853) (3,678) (128) (3,806) Profit before Taxation 5,507 560 6,067 Taxation (2,919) (276) (3,195) Profit after taxation 2,588 284 2,872 Minority Interest (264) - (264) Net Profit 2,324 284 2,608 Earnings per share - Basic and Diluted 0.08 0.01 0.09 Weighted average number of shares - Basic and Diluted 27,854,156 27,854,156 27,854,156 Three months ended March 31, 2007 Amounts, except shares Continuing Discontinued and per share amounts, operations operations Total expressed in thousands of (Unaudited) (Unaudited) (Unaudited) USD Revenue 33,458 947 34,405 Operating Expenses Raw and auxiliary materials and other external costs 6,089 177 6,266 Staff costs 6,136 180 6,316 Depreciation and amortization of intangible and tangible fixed assets and negative goodwill 5,470 13 5,483 Profit on disposal of intangible and tangible fixed assets (888) 1 (887) Other operating charges 6,105 441 6,546 Incremental offering-related costs - - - 22,912 812 23,724 Operating Profit 10,546 135 10,681 Gain on disposal of subsidiary - - - Net Financial Income and Expense Exchange rate results 576 - 576 Interest income 370 11 381 Interest expense (5,229) (4) (5,233) (4,283) 7 (4,276) Profit before Taxation 6,263 142 6,405 Taxation (1,557) (32) (1,589) Profit after taxation 4,706 110 4,816 Minority Interest (589) - (589) Net Profit 4,117 110 4,227 Earnings per share - Basic and Diluted 0.19 0.00 0.19 Weighted average number of shares - Basic and Diluted 21,849,343 21,849,343 21,849,343

Revenue by segment Three months ended March 31, Year ended March 31, Amounts expressed in (Unaudited) (Unaudited) thousands of USD 2008 2007 2008 2007 United Kingdom 23,704 20,674 94,791 75,705 South Africa 5,485 3,596 21,673 13,766 Indonesia 2,889 2,911 11,356 11,062 China 2,313 1,805 10,023 2,924 Chile 2,301 1,763 7,593 6,393 Panama 2,183 2,159 8,780 6,165 The Philippines 756 638 2,861 2,359 Holding Companies 166 (88) 700 193 Revenue from continuing operations 39,797 33,458 157,777 118,567 Discontinued operations - Mexico(1) 697 947 2,865 3,136 Total reported revenue 40,494 34,405 160,642 121,703 (1) On January 8, 2008, the Company agreed to an early termination of its operation and maintenance contract in Mexico. As a result of this agreement the operations of Mexico have been shown as discontinued in the three and twelve month periods ended March 31, 2008 and in the comparative periods ended March 31, 2007.

Use of Non-GAAP Financial Measures - EBITDA

EBITDA represents net profit before interest expense/(income) and exchange rate results, gain on disposal of subsidiary, taxation, depreciation and amortization of intangible and tangible fixed assets and negative goodwill, loss/(profit) on disposal of intangible and tangible fixed assets and minority interest. EBITDA is a non-GAAP measure and does not represent and should not be considered as an alternative to net profit or cash flow as determined under generally accepted accounting principles. We believe EBITDA facilitates operating performance comparisons from period to period. We believe EBITDA may facilitate company to company operating performance comparisons by backing out potential differences caused by variations in capital structures (affecting net interest expense), taxation and the age and book depreciation of facilities and equipment (affecting relative depreciation expense), which may vary for different companies for reasons unrelated to operating performance and other non-recurring one-time items. We further believe that EBITDA is frequently used by securities analysts, investors and other interested parties in their evaluation of companies, many of which present an EBITDA measure when reporting their results.

EBITDA has limitations as an analytical tool, and you should not consider it either in isolation or as a substitute for analyzing our results as reported under Dutch GAAP. Some of these limitations are:

-- EBITDA does not reflect historical cash expenditures or future requirements for capital expenditures or contractual commitments; -- EBITDA does not reflect changes in, or cash requirements for, our working capital needs; -- EBITDA does not reflect our interest expense, or the cash requirements necessary to service interest or principal payments on our debt; -- EBITDA does not reflect our tax expense or the cash requirements to pay our taxes; -- although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements of those replacements; and -- other companies in our industry may calculate EBITDA differently, limiting its usefulness as a comparative measure.

Because of these limitations, EBITDA should not be considered as the primary measure of our operating performance or as a measure of discretionary cash available to us to invest in the growth of our business.

The following is a reconciliation of net profit, the most directly comparable Dutch GAAP performance measure, to EBITDA.

Year ended Year ended Amounts expressed in thousands of USD March 31, 2008 March 31, 2007 Net profit 11,588 8,016 Add: Interest expense and exchange rate results 19,684 20,492 Gain on disposal of subsidiary (1,691) - Taxation 9,716 6,944 Depreciation and amortization of intangible and tangible fixed assets and negative goodwill 22,786 17,980 (Profit) on disposal of intangible and tangible fixed assets (749) (989) Minority interest 945 753 EBITDA $62,279 $53,196 Revenue 160,642 121,703 EBITDA as a percentage of revenue 38.8% 43.7%

The following is a reconciliation of net profit from continuing operations, the most directly comparable Dutch GAAP performance measure, to EBITDA from continuing operations.

Year ended Year ended Amounts expressed in thousands of USD March 31, 2008 March 31, 2007 Net profit from continuing operations $9,888 $7,671 Add: Interest expense and exchange rate results 19,593 20,506 Taxation 9,359 6,806 Depreciation and amortization of intangible and tangible fixed assets and negative goodwill 22,740 17,932 (Profit) on disposal of intangible and tangible fixed assets (749) (989) Minority interest 945 753 EBITDA from continuing operations $61,776 $52,679 Revenue from continuing operations 157,777 118,567 EBITDA as a percentage of revenue from continuing operations 39.2% 44.4% Three months Three months ended March 31, ended March 31, Amounts expressed in thousands of USD 2008 2007 Net profit from continuing operations $2,324 $4,117 Add: Interest expense and exchange rate results 3,678 4,283 Taxation 2,919 1,557 Depreciation and amortization of intangible and tangible fixed assets and negative goodwill 5,712 5,470 (Profit) on disposal of intangible and tangible fixed assets (675) (888) Minority interest 264 589 EBITDA from continuing operations $14,222 $15,128 Revenue from continuing operations 39,797 33,458 EBITDA as a percentage of revenue from continuing operations 35.7% 45.2%

Cascal Consolidated Balance Sheets March 31, 2008 March 31, Amounts expressed in thousands of USD (Unaudited) 2007 Assets Fixed Assets Intangible fixed assets 18,424 17,146 Tangible fixed assets 366,357 334,120 Financial fixed assets 27,350 26,381 412,131 377,647 Current Assets Stocks and work in progress 2,083 2,063 Debtors 54,474 76,858 Cash at bank and in hand 54,380 28,321 110,937 107,242 Total Assets 523,068 484,889 Shareholders' Equity & Liabilities Shareholders' equity 136,726 38,552 Minority shareholders' interest 16,101 10,568 Group Equity 152,827 49,120 Negative goodwill 1,232 1,167 Provisions & deferred revenue 127,006 113,268 Long term liabilities 190,190 245,069 Current liabilities 51,813 76,265 Total Liabilities 370,241 435,769 Total Shareholders' Equity and Liabilities 523,068 484,889 Investor Contacts: KCSA Strategic Communications Jeffrey Goldberger / Yemi Rose +1-212-896-1249 / +1-212-896-1233 jgoldberger@kcsa.com/ yrose@kcsa.com

Web site: http://www.cascal.co.uk

Jeffrey Goldberger, +1-212-896-1249, jgoldberger@kcsa.com, or Yemi Rose, +1-212-896-1233, yrose@kcsa.com, both of KCSA Strategic Communications for Cascal N.V.