3QFY2007

Key Highlights:

re-deployment into new projects and expansion

- China continues to be the Group’s main revenue driver

robust growth of Industrial projects

with BP International Ltd (“BP”) and the Dalian Institute of Chemical Physics

(“DICP”)

China, the Philippines and Vietnam

position as one of the global leading technology-based environmental and water

companies. HWT will be the first pure-play global water business trust to be listed on a

securities exchange in Asia. With the proposed creation of HWT, we would achieve our

asset-light strategy, giving us the financial flexibility for us to acquire and further develop

water-related infrastructure assets.”

“We have also achieved a significant milestone entering into the field of clean energy

collaborating with BP and the DICP to jointly develop and commercialise the use of

Zeolite dewatering membranes in the production of biofuels. Our used oil recycling

business continues to make progress in Saudi Arabia, China, the Philippines and

Vietnam.

“We have put in place a strong international management team to drive our growth. We

will continue to leverage both on our strong team and unique membrane technology to

expand into new markets,” said Ms Olivia Lum, Hyflux’s Group CEO and President.

leading global player in integrated water and environmental solutions specialising in

membrane technologies, today reported a 329% surge in earnings to S$5.1 million from

S$1.2 million for the quarter ended 30 September 2007 (“3QFY2007”), on the back of a

76% surge in revenue of S$51.9 million.

FINANCIAL REVIEW

The Group’s 76% increase in revenue in 3QFY2007 to S$51.9 million from S$29.4 million

was mainly due to higher industrial sales, which surged 96% to S$39.2 million.

Municipal sales also increased by 85% to S$12.4 million in 3QFY2007 whilst China

continued to be the main revenue driver, contributing approximately 68% of total revenue

for 3QFY2007. Sales in the Middle East and North Africa (“MENA”) region accounted for

27% of total revenue in this financial period.

Higher raw materials and consumables, personnel expenses and depreciation and

amortisation in 3QFY2007 were in line with the Group’s growth.

A non-operating income of S$1.4 million in 3QFY2007 was mainly due to an unrealised

foreign exchange gain recorded on the translation of a loan facility denominated in US

dollar as a result of the weakening US dollar. This compares favourably with nonoperating

expenses recorded in the previous corresponding quarter.

The Group also experienced a lower effective tax rate of 6% due to tax exemptions and

incentives enjoyed by certain entities of the Group.

Overall, the net effect of the above resulted in an increase in 3QFY2007 profit by 329% to

S$5.1 million from S$1.2 million in the previous corresponding period.

Earnings per share increased by 122% to 0.80 cents in 3QFY2007 from 0.36 cents in the

previous corresponding period.

BALANCE SHEET

The Group’s cash position stood at S$68.4 million as at 30 September 2007, up by

S$32.4 million as compared to the same corresponding period. Shareholders’ equity

increased by S$11.9 million or 6% to S$213.0 million from S$201.1 million as at 31

December 2006.

RECENT CORPORATE DEVELOPMENTS

Hyflux recently lodged and will be listing its business trust sponsored by the Company,

HWT on the Singapore Exchange Securities Trading Limited (“SGX-ST”). The

business trust, with an initial portfolio of 13 water plants and a total capacity of 445,000

Trust Management Pte. Ltd., a wholly-owned subsidiary of Hyflux, as Trustee-Manager,

will be granted a right of first offer, a right of first refusal and right to match on all waterrelated

infrastructure assets owned by the Hyflux Group.

“HWT will be the first pure-play global water business trust to be listed on a securities

exchange in Asia. We will continue to own 25% stake in HWT after listing, providing us

with potential appreciation as we focus on yield accretive projects,” added Ms Lum.

The Group also achieved a significant milestone entering into the field of clean energy

collaborating with BP International Ltd (“BP”) and the Dalian Institute of Chemical

Physics (“DICP”). “The aim is to jointly develop and commercialise the use of Zeolite

membranes in the dewatering and separation processes of bio fuels such as bioethanol,

that is, the use of Zeolite (and ceramic) membrane to separate alcohol and

water. By increasing the efficiency of the dewatering step of bio-ethanol production

using Zeolite membranes, we aim to provide a more cost efficient method compared

with the conventional method. We are confident of the prospects that this technology

offers us,” commented Ms Lum.

The Group’s used-oil recycling business continued to make progress in Saudi Arabia,

China, the Philippines and Vietnam. The Group’s wholly-owned subsidiary, Eflux

Singapore Pte Ltd (“EFLUX”) recently signed 2 Joint Venture Agreements in the

Philippines and Vietnam to invest approximately US$22.5 million in used-oil recycling

plants. In the Philippines, EFLUX entered into an agreement with Tao Commodity

Trader, Inc. to invest approximately US$12 million to build a state of the art used oil

recycling plant near Calaca, Batangas in the Philippines for the collection, treatment

and recovery of used oil into high grade base oil for sale in the Philippines and other

export markets. In Vietnam, EFLUX inked an agreement with Success Blossom

Environment Vietnam Joint Stock Company to invest US$10.5 million to build a state of

the art used oil recycling plant near Hanoi, capital of Vietnam for the collection,

treatment and recovery of used oil into high grade base oil for sale in Vietnam and other

export markets such as Laos and Cambodia.

PROSPECTS

Looking ahead, Hyflux remains optimistic about the prospects of the environmental and

water industries.

“Our fundamentals and competitive position have further strengthened with the proposed

establishment of our business trust, and the progress that we are making in our used oil

recycling and energy segments. We continue to focus on the execution of projects in

target regions – China, India and the Middle East Northern African Region.”

“We have put in place a strong international management team to drive our growth. We

will continue to leverage both on our strong team and unique membrane technology to

expand into new markets,” concludes Ms Olivia Lum, Hyflux’s Group CEO and President.

ABOUT HYFLUX LTD

Founded in 1989, Hyflux Ltd has rapidly grown to become one of global’s leading water

and 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 process design and optimisation, pilot testing, fabrication,

and installation, engineering procurement & construction. It is also engaged 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.

Its four key areas of focus are:

recycling, seawater water reclamation and ultra pure water production for

municipal and industrial clients as well as home consumer filtration and purification

products

manufacturing process streams

recycling and energy reclamation such as used oil recovery and recycling.

utilizing membrane technology, such as lactic acid from natural renewable

resources like corn and sugar cane.

In 2006, Hyflux was awarded Water Company of the Year by the UK’s Global Water

Intelligence at the Global Water Awards. It was also named a Forbes Asia’s Best Under a

Billion Company in 2006 and 2005.

ISSUED ON BEHALF OF : Hyflux Ltd

BY : Citigate Dewe Rogerson, i.MAGE Pte Ltd

1 Raffles Place

#26-02 OUB Centre

SINGAPORE 048616

CONTACT : Ms Dolores Phua / Ms Carol Wee

at telephone

DURING OFFICE HOURS : 6534-5122 (Office)

AFTER OFFICE HOURS : 9750-8237 / 9730-5754 (Handphone)

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166/07/004/HL

November 12, 2007