1.   Summary- Cayman Water’s (CW) “tracer method” leak detection project is designed to detect and pinpoint water leaks in CW buried water mains. The method employed is to use inert helium gas as a tracer material.

2.   Purpose- The project is an operational scale pilot project designed to prove the applicability and economic feasibility of this technology for CW operations. The aim of leak detection and pinpointing is to lower the amount of water lost through leaks in CW’s buried pipe network.

3.   Description- The technology used for the project is proprietary and is provided by Utility Service Company. This technology involves the addition of small quantities of helium gas into the piped water network. Helium is a noble gas, is odourless, colourless, tasteless, non-toxic and will not affect the quality of the water. Helium is the gas used in party balloons with which everyone is familiar. The gas dissolves in the water and whenever water leaks are present in the piped water network, the dissolved helium leaks out along with water. The helium quickly separates from the water and rises through the soil to the surface. Trained technicians with specialized sensing equipment then detect the elevated level of helium to identify and pinpoint the leak location for repair with minimal disruption of the surroundings

4.   Operation- The project will take place over approximately 3 weeks in March. The area included in the project will be in a radius of about % mile around the CW Abel Castillo Water Works on Seven Mile Beach. Technicians will be working on the sides of the roads in this area during this time and we would ask drivers to exercise care when encountering these work crews.

5.   Other facts/figures

a.   CW currently loses between 12% and 14% of the water it produces mostly through pipe leaks.

b.  Helium is an approved food additive and the product used for the project is certified for drinking water use under (US) National Sanitary Foundation ANSI 60 standard.

c.   The technology is used in both Europe and the United States.

d.   Water Authority-Cayman, Cayman Water’s regulator has reviewed the project and has approved it to proceed.

e.   Helium is a naturally occurring element and is the second most abundant element in the universe. The atmosphere we breathe contains 5 parts per million helium concentrations.

6.   Objectives and benefits – The objectives of the project are to increase Company operational efficiencies, minimize disruptions of water service to our customers, and limit the effects on the roads of necessary leak repair work. Collateral benefits include the reduction of Company operations related C02 emissions through reduced electricity use thus enhancing conservation  of resources and benefiting the environment.

7.   For more detailed information on the project, the technology and general information on helium, visit the News tab on the Cayman Water web site at www.caymanwater.com.

CAYMAN WATER COMPANY LIMITED (“CAYMAN WATER”)

Consolidated Water Co. Ltd. (the “Company”, or “CWCO”) the parent company of Cayman Water designs, builds, operates, and in some cases finances seawater reverse osmosis

Cayman Water Company Limited, PO Box 1114 Crand Cayman KY1·1102  CAYMAN ISLANDS,Tel:(345) 945 4277, Fax:(345) 945 4191, E-mail [email protected]

(SWRO) desalination plants and water distribution systems in several Caribbean countries, where the supply of drinking water is scarce and the use of SWRO is economically feasible.

Consolidated Water Co. Ltd. provides water to a variety of residential and commercial customers through our wholly owned subsidiary, Cayman Water which operates under an exclusive license issued by the Cayman Islands Government. The Company was established in 1973 as a private water utility on Grand Cayman, the largest island in the Cayman Islands group, and obtained its first piped water utility license in the Cayman Islands in 1979. Cayman Water supplies water to end-users, including residential, commercial and Government  customers. The Company is listed on the Nasdaq Global Select stock market under the symbol “CWCO”.

Visit our Retail website at www.caymanwater.com for more information on our retail customer services.

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