About Inversiones Aguas Metropolitanas

Inversiones Aguas Metropolitanas S.A., through its subsidiary, Aguas Andinas S.A, engages in the processes of catchment of raw water; the production, transportation, and distribution of water; and the collection, treatment, and final disposal of sewage primarily in Chile. It also provides sanitation services to residential, commercial, and industrial customers. The concession areas of Aguas Andinas S.A. and its subsidiaries cover approximately 70 thousand hectares in the basin of Santiago and another approximately of 67 thousand hectares in the provinces of Valdivia, Ranco, Osorno, Llanquihue, Chiloé, and Palena in the south of Chile. The sanitation subsidiaries of the company include Aguas Andinas S.A., Aguas Cordillera S.A., Aguas Manquehue S.A., and (Empresa de Servicios Sanitarios De Los Lagos) ESSAL. The company’s subsidiaries include companies that are complementary to the sanitation industry and provide environmental services for the general industry. The nonregulated companies include: EcoRiles: EcoRiles provides advisory and management services in environmental processes and problems related to industrial liquid waste. Gestión y Servicios: Gestión y Servicios sells materials and solutions for the sanitation industry, and offers services related to the integral water cycle. Its principal customers include construction and property development companies, and installers of sanitation and basic services. It carried out projects in 2008, including the construction of the biogas plant at La Farfana. Anam: Anam environmental laboratory engages in the sampling and analysis of water, sludge, soil, and air, accredited under national standards and the requirements appropriate to the laboratory network of the Agbar Group. Operations The catchment process engages in the catchment of the raw water needed to cover customers’ demand for water. The production of water includes the purification of the water to make it suitable for human consumption. The principal water production plants in the Santiago basin are the Las Vizcachas complex and La Florida plant. The transportation and distribution of water includes regulation tanks and a network of underground pipes that extend to approximately 13,041 kilometers in the Metropolitan Region and approximately 1,804 kilometers in the 10th and 14th Regions, permitting water coverage for both concession areas. The collection of sewage is the process of evacuation of used water to the sanitation plants or final disposal points, by sewers. Sewage treatment includes purifying used water through chemical and physical processes carried out at modern sanitation plants. The sanitation subsidiaries have two treatment plants in Santiago (El Trebal and La Farfana), another nine local installations and three in the north-east of Greater Santiago. As of December 31, 2008, it provided water services to approximately 1,646,622 customers and sewage services to 1,618,624 customers; operated a water distribution network of approximately 13,041 kilometers; and offered sanitation services to approximately 5.6 million residents of the Metropolitan region and it served approximately 600 thousand people in the regions De Los Lagos and De Los Ríos. In 2008 the subsidiary, Aguas Andinas S.A. acquired a 53.5% in Empresa de Servicios Sanitarios De Los Lagos (ESSAL) and the subsidiaries Aguas Cordillera S.A. and Aguas Los Dominicos S.A. were merged, with the former absorbing the latter.