Everbright International Achieves Breakthrough in the Supply of Reusable Water Sector

Two Reusable Water Projects Commence Operation Reaching Daily Water Supply Capacity of 47,000 m³ for Industrial Use

China Everbright International Limited ("Everbright International" or the "Group") (SEHK: 00257), has announced that both the Jinan Reusable Water Project and Zibo Reusable Water Project ("Zibo Project") Phase I have commenced operation on 15 September and 20 September 2011 respectively with an aggregate daily reusable water supply capacity of 47,000 m³ for industrial use. The projects represent a new profit growth driver for the Group as they have progressed from internal use only to supply water externally.

The Jinan Reusable Water Project is the largest single reusable water project in Shandong Province and has started to supply 42,000 m³ of reusable water a day to Huangtai Power Plant for cooling circulation purposes. The agreement was signed in May 2010, the project started construction in August of the same year and was completed in June this year. It is a leading prototype project for the industrial use of reusable water from the waste water treatment plant in Shandong Province to enter into the industrial sector with large scale. After the project commences operation, 42,000 m³ of underground water can be replaced a day which can save water consumption equivalent to the volume of water in Daming Lake a month. This will bring significant resources, social, environmental and economic benefits to Jinan City, the famous "Spring City" in the PRC.

In addition, the Zibo Project Phase I has commenced operation on 20 September. This Project has been developed in two phases with a total capacity of supplying 9,600 m³ of ultrapure reusable water a day. The Zibo Project Phase I, which will supply 5,000 m³ of ultrapure reusable water a day, commenced construction in September 2010 and has started trial run on 31 May this year, for the use of turning the water into supplementary water for power plant boilers. The ultrapure reusable water supplied by the project boasts a higher pureness standard than that of daily drinking water. The production of quality ultrapure reusable water by utilising urban waste water signifies that the Group has become a pioneering enterprise to produce reusable water in the waste water treatment industry in the PRC.

In addition, the Group is actively undertaking initial preparation works for the reusable water project in Jiangyin, Jiangsu Province. This project is to supply 10,000 m³ reusable water a day to local textile and electronic industries, opening a new reusable water market.

Mr. Chen Xiaoping, Chief Executive Officer of Everbright International, said, "Developing reusable water resources demands immediate attention as the problem of scarce global water resources has become more serious. The reusable water produced is the non-drinking water generated from urban waste water after a purification process. It meets the country's household water standard or industrial water standard and there is no need to take water from distant locations, offering the advantages of lower cost and stable water reserve, yielding a new water resource. In concern of this, Everbright International insists on implementing a high standard of treatment in its waste water treatment projects. It is also constantly seeking innovation and recycles the water after the leachate treatment process in its waste-to-energy projects. The reusable water after treatment becomes ultrapure water with a higher standard than drinking water. The Group currently has 18 waste water treatment plants with a daily processing capacity of 1,550,000 m³".

Mr. Chen added, "Thanks to the strong support and trust from Jinan and Zibo Municipal Governments and enterprise users, the Group has successfully invested in reusable water projects in Jinan, Zibo and Jiangyin Cities. These projects represent the further extension of our industry chain involving the integrated use of water resources, and our leadership in the waste water resources sector in Shandong Province. In addition to developing our projects, the Group will continue to implement R&D in order to extend the industry chain of reusable water projects, generate investment returns for our shareholders and contribute to the sustainable development of the Company and society".