United Envirotech Announces US$40 Million Follow-on Investment by KKR

  United Envirotech Announces US$40 Million Follow-on Investment by KKR

Business Wire

SINGAPORE & BEIJING -- January 8, 2013

United Envirotech Limited (“UEL”)(SGX:U19), a leading water treatment and
recycling solution provider in China, today announced that KKR, a leading
global investment firm with more than US$66 billion in assets under
management, has entered into a definitive agreement with the company for a
US$40 million common equity investment. KKR subscribed US$113.8 million
convertible bonds issued by UEL in October 2011 to support the company’s
business expansion, and has been working with UEL to capture the attractive
growth opportunities in China’s water industry.

UEL provides engineering services using membrane technology to municipal and
industrial waste water treatment projects, and also operates a portfolio of
waste water treatment plants across China.

“We are delighted to have KKR continue to invest in UEL to support our strong
growth. It is a clear indication that KKR is satisfied with UEL’s performance
and is very confident in our growth potential. KKR has truly demonstrated to
be a long-term, value-added partner since their original investment. Working
with KKR, we are able to leverage their global resources, operational
capabilities with KKR Capstone and their China team’s local experience and
track record of success,” said Dr. Lin Yucheng, Chairman and CEO of UEL. “With
the additional capital, UEL is well positioned to continue our growth and
scale new heights in China’s water treatment space.”

“KKR is excited to have the opportunity to increase our investment in UEL,”
said David Liu, Member of KKR and CEO of KKR Greater China. “UEL has an
outstanding management team under Dr. Lin, with deep industry knowledge and
strong local expertise. We are delighted to further strengthen our partnership
with them and look forward to continuing to utilize our global network and
local expertise to support UEL’s long term growth and contribute to the
overall environmental initiatives in China.”

The offering price is S$0.50 per share, which represents an 8.5% premium to
S$0.461 per share, being the volume weighted average price for the last 30
trading days. The proceeds will be used to fund the acquisition of water
treatment plants, upgrading of existing plants and Company’s working capital.

The investment is expected to conclude by March 2013 and is subject to
customary conditions, including approval from UEL's shareholders. A circular
detailing the investment will be dispatched to UEL’s shareholders followed by
an extraordinary general meeting to be held on a date to be determined.

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ABOUT United Envirotech Ltd.

United Envirotech (“UEL”) is a leading membrane-based water and waste water
treatment and recycling solutions provider in China’s chemical, petrochemical
and municipal sectors. Its principle activities include design, fabrication,
installation and commissioning of water and waste water systems using its
proprietary advanced membrane technologies such as the Membrane Bioreactor
(MBR) technology. UEL has designed and built several of the largest industrial
and municipal wastewater treatment plants in Asia using the MBR technology.

UEL undertakes both turnkey and water investment projects (TOT/BOT/BOO), as
well as provides treatment plant operation and maintenance services. UEL
serves a strong prominent customer base such as petrochemical giants like
China Petrochemical Corporation (“Sinopec”), China National Petroleum
Corporation (“CNPC”), China National Offshore Oil Corporation (“CNOOC”) and
Sembcorp Industries in Singapore.

UEL was listed on SGX Mainboard on 22 April 2004 and on the Taiwan Stock
Exchange on the 22 October 2010. For additional information, please visit
UEL’s website at www.unitedenvirotech.com.


Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading
global investment firm with US$66.3 billion in assets under management as of
September 30, 2012. With offices around the world, including seven in Asia,
KKR manages assets through a variety of investment funds and accounts covering
multiple asset classes. KKR seeks to create value by bringing operational
expertise to its portfolio companies and through active oversight and
monitoring of its investments. KKR complements its investment expertise and
strengthens interactions with investors through its client relationships and
capital markets platform. KKR & Co. L.P. is publicly traded on the New York
Stock Exchange (NYSE: KKR), and “KKR,” as used in this release, includes its
subsidiaries, their managed investment funds and accounts, and/or their
affiliated investment vehicles, as appropriate. For additional information,
please visit KKR's website at www.kkr.com.


Key Media Contacts:
KKR (New York)
Kristi Huller, +1 212 230 9722
New Alliance Consulting International (for KKR China and UEL)
Sissi Feng, +8610 6580 9510
Hill+Knowlton Strategies Asia (for KKR Asia and UEL)
Nicholas Worley, +852 2894 6313
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