China Hydroelectric Corporation Announces Acquisition of 19MW Hydroelectric Power Project

USA - English

• USA - English

NEW YORK, May 6 /PRNewswire-Asia-FirstCall/ -- China Hydroelectric Corporation (NYSE: CHC, CHC-WS) ("China Hydroelectric" or the "Company"), a consolidator, developer and operator of small hydroelectric power projects in the People's Republic of China ("PRC"), today announced that it has consummated the previously announced acquisition of 100% of the 19 megawatt ("MW") Husahe Project located in the Yunnan province of the PRC.

The purchase price for the project was US $15 million (RMB 106 million) paid in the form of cash and a seller note, all or a portion of which may be refinanced with non-recourse bank debt from local Chinese banks. The Company had announced the execution of the definitive agreement for this acquisition on April 14, 2010. Prior to executing the definitive agreement, the Company had entered into a memorandum of understanding with respect to the acquisition.

The Company continues to work towards the consummation of its previously announced pending acquisition of a 44 MW Xiaopengzu Project, also in Yunnan province, as well as on finalizing acquisitions of additional projects for which the Company has entered into memoranda of understanding.

About China Hydroelectric Corporation

China Hydroelectric Corporation ("CHC" or the "Company") is a consolidator, developer and operator of small hydroelectric power projects in the People's Republic of China. Led by an international management team, the Company's primary business is to identify and evaluate acquisition and development opportunities and acquire, and in some cases construct, small hydroelectric power plants in China. China produces approximately 22% of its total energy from hydroelectric energy. The Company currently owns thirteen operating hydropower projects (consisting of 16 operating stations) in China with total installed capacity of 396 MW. These projects are located in four provinces: Zhejiang, Fujian, Yunnan and Sichuan.

For further information about China Hydroelectric Corporation, please visit the Company's website at http://www.chinahydroelectric.com .

Cautionary Note Regarding Forward-looking Statements:

Statements contained herein that address operating results, performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. The forward-looking statements include, among other things, statements relating to our business strategies and plan of operations, our ability to acquire hydroelectric assets, our capital expenditure and funding plans, our operations and business prospects, projects under development, construction or planning and the regulatory environment. The forward-looking statements are based on our current expectations and involve a number of risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance or achievements to differ materially from those anticipated. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Among the factors that could cause actual results to materially differ include: supply and demand changes in the electric markets, changes in electricity tariffs, hydrological conditions, our relationship with and other conditions affecting the power grids we service, our production and transmission capabilities, availability of sufficient and reliable transmission resources, our plans and objectives for future operations and expansion or consolidation, interest rate and exchange rate changes, the effectiveness of our cost-control measures, our liquidity and financial condition, environmental laws and changes in political, economic, legal and social conditions in China, and other factors affecting our operations that are set forth in our Prospectus dated January 25, 2010 and filed with the Securities and Exchange Commission (the "SEC") and in our future filings with the SEC. Unless required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    For more information, please contact:

    Company:

     Mary Fellows, EVP and Secretary
     China Hydroelectric Corporation
     Phone: +1-860-435-7000
     Email: [email protected]

    Investor Relations:

     Scott Powell
     HC International, Inc.
     Phone: +1-917-721-9480
     Email: [email protected]

SOURCE China Hydroelectric Corporation