China Hydroelectric Corporation Signs Definitive Agreement to Acquire 55.4 MW of Hydroelectric Power Projects in Fujian Province

NEW YORK, Nov. 8, 2010 /PRNewswire-Asia-FirstCall/ --  China Hydroelectric Corporation (NYSE: CHC, CHCWS) ("China Hydroelectric" or the "Company"), an owner, developer and operator of small hydroelectric power projects in the People's Republic of China ("PRC"), today announced that, on November 3, 2010, it entered into a definitive agreement to acquire a controlling interest in a total of 55.4 gross megawatts ("MW") of operating installed capacity in Fujian province of the PRC.  This acquisition is the first phase of the previously announced "Taiyu Projects" acquisition for a controlling interest in seven operating hydroelectric power projects, representing a total of 114.4 MW.

This first phase of the Taiyu Projects acquisition consists of controlling interest in the following five operating projects: a 74% interest in the Jinwei project (16.0 MW); a 74% interest in the Jintang project (11.6 MW); a 55% interest in the Jinlong project (10.0 MW); a 100% interest in the Qianling project (13.0 MW); and a 100% interest in the Dongguan project (4.8 MW). These five projects represent a combined total of 55.4 gross MW of the total of 114.4 gross MW for the Taiyu Projects.

The definitive agreement provides for the Company to acquire this first phase for a purchase price of US $61.3 million (RMB 411 million). This acquisition, which is expected to be consummated shortly, is expected to be financed through cash on hand and bank financing. The consummation of the acquisition is subject to customary closing conditions, including, among other things, obtaining government approvals.

The Company had announced the signing of the memorandum of understanding for this acquisition on February 14, 2010. This first phase of the acquisition, if consummated, will represent an addition of 55.4 MW of gross operating installed capacity, or 43.7 MW of net installed capacity, increasing the Company's total gross installed capacity to 548.8 MW, or 532.6 MW of net installed capacity.

The Company continues to work towards finalizing the acquisition of the second phase of the Taiyu Projects for which the Company has entered into memoranda of understanding. As announced previously, the Company has made down payments with respect to the Taiyu Projects memoranda, which include penalties to the sellers for cancellation. Subject to the satisfactory completion of its due diligence review, the Company expects to enter into definitive agreements to acquire and finance these projects in the near term.

About China Hydroelectric Corporation

China Hydroelectric Corporation ("CHC" or the "Company") is an owner, 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 sixteen operating hydroelectric power projects (consisting of 21 operating stations) in China with total installed capacity of 493.4 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.

SOURCE China Hydroelectric Corporation