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China Hydroelectric Corporation Executes Definitive Agreements to Acquire Additional Hydroelectric Power Projects in Yunnan Province

May 12, 2010

NEW YORK, May 12 /PRNewswire-Asia-FirstCall/ — China Hydroelectric
Corporation (NYSE: CHC, CHCWS) (“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 signed
definitive agreements to acquire a portion of the previously announced Minrui
projects in Yunnan province of the PRC. The Company had previously announced
the execution of a memorandum of understanding to acquire 100% of the Minrui
group of projects, which included 4 operating hydroelectric projects
aggregating 66 MW, 3 projects under construction aggregating 125 MW, and the
development rights to 9 projects aggregating 341 MW. The executed definitive
agreements include three of these Minrui operating hydroelectric projects,
totaling 55.5 MW.

The new definitive agreements provide for the Company to acquire the three
operating hydroelectric projects for a purchase price of US $60.8 million (RMB
415.3 million
). This acquisition, which is expected to be consummated shortly,
is expected to be financed through cash on hand and bank financing expected to
be provided under the terms of the Company’s previously announced Loan
Framework Agreement with the Bank of China’s Fujian Branch. This acquisition
is subject to customary closing conditions, including obtaining governmental
approvals. The Company continues to work towards the consummation of this
acquisition and its previously announced pending acquisition of the 44 MW
Xiaopengzu Project, also in Yunnan province, as well as on finalizing
acquisitions of additional projects for which the Company has entered into
memorandum 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:
    China Hydroelectric Corporation
     Mary Fellows, EVP and Secretary
     Phone: +1-860-435-7000
     Email: mfellows@chinahydroelectric.com

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

SOURCE China Hydroelectric Corporation


Source: newswire