Founded in 1989, Hyflux Ltd (the "Sponsor") has rapidly grown to become one of Asia's leading environmental companies specialising in membrane technologies, with operations in Singapore & Southeast Asia, China, the Middle East & North Africa and India. Listed on the Singapore Stock Exchange, Hyflux is today an integrated solutions provider offering services that include research and development, process design and optimisation, pilot testing, fabrication, and installation, engineering procurement & construction. It also engages in the commissioning, operation & maintenance of a wide range of water treatment & liquid separation plants on a turnkey or Design-Build-Own-Operate ("DBOO") arrangement.

The Sponsor intends to position HWT as its primary platform for investing in water-related infrastructure assets. The establishment of HWT will allow Hyflux to pursue its asset-light strategy, recycle its capital and continue to expand and develop its business, which will in turn provide a continuing pipeline of high quality income-generating water-related infrastructure projects to HWT.

Committed to the growth and yield-accretive development of HWT's portfolio, Hyflux has granted the Trustee-Manager a right of first offer, a right of first refusal and right to match ("ROFOAR") on all water-related infrastructure assets owned by the Hyflux Group. As at December 2007, 20 wholly-owned water-related infrastructure assets available under the ROFOAR, with a total capacity of 760,000 m³/day. This ensures that HWT will have a long-term pipeline of water-related infrastructure assets around the world which are owned and developed by the Sponsor. This arrangement not only satisfies HWT's investment strategy, but is also in line with the Sponsor's overall vision of achieving an asset-light business structure.

Given the commitment of a pipeline of projects from the Sponsor, HWT can expand its portfolio of high quality water-related infrastructure projects which can generate long-term, regular and predictable cash flow. In return, the proceeds of the Offering and future equity and debt issues, together with distributions from HWT to the Sponsor as a Unitholder, will provide the Sponsor with the funds required to acquire and develop more water-related infrastructure projects globally. The Sponsor will incubate these projects during the construction and engineering phase, and prepare them for injection into HWT's portfolio through the ROFOAR arrangements.

Through the synergistic business models, HWT and the Sponsor are better positioned to grow their respective businesses and expand their presence in the water infrastructure sector globally.