China Hydroelectric Corporation Provides Update on Possible Acquisition of 3 Hydroelectric Power Projects in Yunnan Province

February 16, 2010

NEW YORK, Feb. 16 /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 executed a
definitive agreement to acquire a 44 megawatt operating hydroelectric project
in Yunnan province in the People’s Republic of China. In addition, the Company
announced that it has also entered into memoranda of understandings to acquire
two additional operating hydroelectric power projects aggregating 34 megawatts
in Yunnan province. Together with the definitive agreement, these memoranda
present the Company with the opportunity to acquire an additional 78 megawatts
of generating capacity in Yunnan province.

The definitive agreement provides for the Company to acquire the
Xiaopengzu project in Yunnan province for a purchase price of US $57 million
(RMB 390 million), to be financed partially through cash on hand and through
the assumption or refinancing of existing non-recourse debt. The acquisition
is subject to customary closing conditions, including obtaining governmental

The memoranda of understanding provide the Company with an exclusive right
to pursue its due diligence of two additional operating hydroelectric projects
in Yunnan. Subject to the satisfactory completion of its due diligence review,
the Company expects to enter into definitive agreements to acquire these
projects in the near term.

“We are pleased to be able to enter into the definitive agreement and the
memoranda of understanding to acquire these three projects in Yunnan,” said
Chairman & CEO John D. Kuhns of China Hydroelectric Corporation. “Yunnan
province, where we already own and operate 43 megawatts of capacity, presents
an excellent opportunity to expand our asset base in China. Our ability to
enter into definitive agreements and MOUs has accelerated as a result of our
recently completed IPO. Completion of these transactions would represent Phase
I of our plan to acquire approximately 250 megawatts of operating
hydroelectric projects during the first half of 2010.”

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 twelve operating
hydropower projects in China with total installed capacity of 377 MW. These
projects are located in four provinces: Zhejiang, Fujian, Yunnan and Sichuan.
In addition, CHC recently expanded operations through the acquisition, pending
government approval, of development rights to a 1,000 MW pumped storage
hydropower plant in Henan.

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:


     Mary Fellows, EVP and Secretary
     China Hydroelectric Corporation
     Phone: +1-860-435-7000
     Email: mfellows@chinahydroelectric.com

    Investor Relations:

     Scott Powell
     HC International, Inc.
     Phone: +1-917-721-9480
     Email: scott.powell@hcinternational.net

SOURCE China Hydroelectric Corporation

Source: newswire

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