China Hydroelectric Corporation Announces Establishment of a Special Committee to Evaluate Non-Binding Proposal

China Hydroelectric Corporation Announces Establishment of a Special Committee
                       to Evaluate Non-Binding Proposal

PR Newswire

BEIJING, Sept. 25, 2013

BEIJING, Sept. 25, 2013 /PRNewswire/ --China Hydroelectric Corporation (NYSE:
CHC, CHCWS) ("China Hydroelectric" or the "Company"), an owner, developer and
operator of small hydroelectric power projects in the People's Republic of
China ("PRC"), today announced that in response to the preliminary non-binding
proposal, dated September4, 2013, from NewQuest Capital Partners, through its
affiliated entity, CPI Ballpark Investments Ltd, and on behalf of its
affiliates and the funds managed by it (collectively, "NewQuest") to acquire
all of the Company's outstanding ordinary shares, including ordinary shares
represented by the Company's American depositary shares or "ADSs" (each
representing three ordinary shares of the Company), not currently owned by
NewQuest, the Company's Board of Directors has established a Special Committee
of the Board comprised of the following three independent directors of the
Company, who are not affiliated to NewQuest:Ms. Moonkyung (Moon) Kim, Mr. Jui
Kian Lim, and Mr. Allard M. Nooy.Ms. Kim is the Chairperson of the Special
Committee. The Special Committee has engaged Houlihan Lokey (China) Limited as
its financial advisor and Davis Polk & Wardwell as its legal counsel to assist
the Special Committee in evaluating the NewQuest proposal and other strategic
alternatives, and will consider the NewQuest proposal and related matters
carefully in due course.

The Board of Directors cautions the Company's shareholders and others
considering trading in its securities that neither the Board of Directors nor
the Special Committee has made any decision with respect to the NewQuest
proposal and there can be no assurance that any definitive offer will be made
by NewQuest or any other person, that any definitive agreement will be
executed relating to the proposed transaction, or that the proposed
transaction or any other transaction will be approved or consummated.The
Company does not undertake any obligation to provide any updates with respect
to this or any other transaction, except as required under applicable law.

About China Hydroelectric Corporation

China Hydroelectric Corporation (NYSE: CHC, CHCWS) ("China Hydroelectric" or
the "Company") is an owner, developer and operator of small hydroelectric
power projects in China. Through its geographically diverse portfolio of
operating assets, the Company generates and sells electric power to local
power grids. The Company's primary business is to identify, evaluate, acquire,
develop, construct and finance hydroelectric power projects. The Company
currently owns 25 operating hydropower stations in China with total installed
capacity of 517.8 MW, of which it acquired 21 operating stations and
constructed four. These hydroelectric power projects are located in four
provinces: Zhejiang, Fujian, Yunnan and Sichuan.Hydropower is an important
factor in meeting China's electric power needs, accounting for approximately
22% of total nation-wide capacity. For further information about China
Hydroelectric, please visit the Company's website at
http://www.chinahydroelectric.com.

Cautionary Statement concerning Forward Looking Statements

This news release contains certain statements that are not descriptions of
historical facts, but are "forward-looking" statements within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended, and as defined
in the U.S. Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as "will",
"should", "expects", "anticipates", "future", "intends", "plans", "projects",
"predicts", "believes", "estimates", "forecasts", "may" and similar
statements. The Company may also make written or oral forward-looking
statements in its periodic reports to the U.S. Securities and Exchange
Commission on forms 20-F and 6-K, in its annual report to shareholders, in
press releases and other written materials and in oral statements made by its
officers, directors or employees to third parties. Statements that are not
historical facts, including statements about the Company's beliefs and
expectations, are forward-looking statements. Forward-looking statements, by
their nature, involve risks, uncertainties and other factors that could cause
actual results to differ materially from those contained in any such
statements. Potential risks and uncertainties include, but are not limited to,
risks discussed in China Hydroelectric's filings with the U.S. Securities and
Exchange Commission at www.sec.gov. China Hydroelectric does not undertake any
obligation to update any forward-looking statement, except as required under
applicable law.

This release is not an offer of securities for sale in the United States.
Securities may not be offered or sold in the United States absent registration
or an exemption from registration. Any public offering of securities to be
made in the United States will be made by means of a prospectus that may be
obtained from the issuer or selling security holder and that will contain
detailed information about the company and management, as well as financial
statements.

Investor and Media Contacts:

Scott Powell
Investor Relations and Corporate Communications
China Hydroelectric Corporation
Phone (U.S.): +1-646-650-1351
Email: ir@china-hydro.com 

ICR, LLC

Gary Dvorchak, CFA
Senior Vice President
Phone (China): +86-10-6583-7500
Phone (U.S.): +1 (310) 954-1123
Email: gary.dvorchak@icrinc.com

SOURCE China Hydroelectric Corporation

Website: http://www.chinahydroelectric.com