Agreement

RNS Number:3209P
Bluewater Bio International
04 March 2008

                          Bluewater Bio International
                       ("Bluewater Bio" or "the Company")

                                   Agreement


Bluewater Bio in agreement with Infrastructure division of Indochina Capital to
jointly develop wastewater treatment opportunities in Vietnam

Bluewater Bio International ("Bluewater Bio"), the provider of an advanced
wastewater treatment solution named HYBACS, today announced that its fully-owned
subsidiary Bluewater Bio Ltd has entered into a memorandum of understanding with
Indochina Capital ("Indochina"), the Vietnam-based financial services firm with
$1.8 billion of funds under management and projects under development.

Under the terms of the agreement Bluewater Bio and Indochina will work together
to identify, evaluate and bid on wastewater treatment projects in Vietnam, with
the intention of addressing both the municipal and industrial sectors. Together,
they are intending to identify between one and five wastewater projects within a
six month period. On applicable projects Indochina plans to finance up to 30%
with Bluewater Bio providing technological expertise and financing the balance
with its partners. Indochina will hire an appropriate water sector specialist to
focus on identifying opportunities and utilise Indochina's offices during the
initial phase, after which the companies plan to establish a joint development
company.

Indochina is a leading financial firm with approximately US$1.8 billion of
assets under management and projects under development. The Indochina managed
funds include two real estate funds, Indochina Land Holdings Fund 1 and 2, and
an equities fund, Indochina Capital Vietnam Holdings, listed on the London Stock
Exchange main board. Indochina has approximately 310 employees with offices in
Hanoi, Ho Chi Minh City, Hong Kong and Singapore.

Vietnam's GDP growth averaged 6.8% per year from 1997 to 2004 even against the
background of the Asian financial crisis and a global recession with real GDP
growth averaging 7.8% between 2002 and 2006. The Vietnamese government has
issued a water supply development plan, with the aim of providing clean water to
80 percent of the population by the year 2010 and the Vietnam Water Supply and
Sewage Association (VWSA) estimates that the total investment for water supply
projects will be more than USD$2 billion over the next ten years.

Daniel Ishag, CEO of Bluewater Bio International, commented "Indochina is a
substantial and highly respected investor in the Vietnam infrastructure market,
and has over the years demonstrated an ongoing and long term investment
commitment to the country. Partnering with such a strong local player is of key
importance in our sector, which involves local construction capacity and
governmental body interface at various levels."

Rick Mayo-Smith, CEO of Indochina Infrastructure and Co-Chairman of Indochina
Capital, commented; "Indochina Capital is delighted to enter into this agreement
with Bluewater Bio. Reflecting the strong industrial growth in the country in
recent years, wastewater treatment is firmly on the agenda in Vietnam, with the
major city of Danang announcing just last week a full review of its wastewater
treatment upgrade requirements. We believe that our strong local presence and
track record supports this excellent opportunity to work with Bluewater Bio
going forward in bidding together on municipal projects. However, in addition to
its commercial, residential and retail property portfolio, Indochina has a
growing industrial zone portfolio, and we believe that Bluewater Bio's HYBACS
wastewater treatment technology has the potential to deliver cost effective high
quality treatment and the ability thereby for our industrial clients to re-use
their own treated effluent at a mitigated cost".


Enquiries

Bluewater Bio International                         Tel: [phone]
Daniel Ishag, CEO

Indochina Infrastructure                            Tel: [phone]
Rick Mayo-Smith, CEO

Citigate Dewe Rogerson (PR advisor)                 Tel: [phone]
Sarah Gestetner/Fiona Mulcahy/Lindsay Noton

Strand Partners Limited (Nominated Adviser)         Tel: [phone]
James Harris/Angela Peace


Notes to Editors

About Bluewater Bio
Bluewater Bio International designs and markets a highly innovative advanced
biological solution to the treatment of wastewater, called HYBACS. This system
deploys a different biological approach to any internationally established
wastewater treatment process. Through its design and operation, HYBACS
biologically selects a particular group of bacteria, Bacillus, with unusual
natural properties which if correctly stimulated exhibit higher biological
reaction rates than other known naturally occurring bacteria.

The company believes that HYBACS will be proven to be commercially superior to
the majority of existing comparable treatment processes worldwide, and is able
to treat efficiently both municipal wastewater as well as a wide range of
organic industrial wastewaters, including highly concentrated livestock
wastewater and the effluent from, among others, breweries, food processors,
textile manufacturers, hospitals, factories and residential developments.

Bluewater Bio is looking to make sales of its HYBACS technology globally.

Key benefits of the HYBACS system include:

* HYBACS produces high quality treated wastewater, treating the biological waste
  in municipal wastewater down to 10 mg/L BOD (Biological Oxygen Demand), and up
  to 99 per cent. treatment of the biological waste in concentrated wastewaters;
* HYBACS requires between five and 15 per cent. less capital expenditure than
  most widely installed comparable technologies to achieve these performance
  qualities on a like-for-like basis;
* HYBACS requires between 22 and 30 per cent. less ongoing operating expenditure
  based on an overall lower energy consumption requirement on a like-for-like
  basis.
* HYBACS is highly suited to plant retrofitting which makes HYBACS more suitable
  for various types of plant upgrading as compared to many other advanced modern
  wastewater treatment processes.
* In applications where odour levels emanating from the plant may be an issue,
  the HYBACS process removes offensive odour without the requirement for
  additional deodorisation facilities which involve additional capital and
  operating expenditures; and
* HYBACS removes approximately twice the concentration of E. coli bacteria,
  compared to conventional technology which may result in moderately reduced
  operating expenditure at sites where disinfection of the effluent is required.

About Indochina Capital
Indochina Capital ('Indochina') is one of Vietnam's leading financial services
firms with diversified fund management and financial advisory businesses.
Indochina manages approximately US$1.8 billion in numerous private client
accounts and funds, including two real estate funds, Indochina Land Holdings
Fund 1 and 2, and an equities fund, Indochina Capital Vietnam Holdings, which in
March 2007 became the first Vietnam related company to list on a major global
stock market, the London Stock Exchange main board.  Indochina also owns a
controlling interest in and manages Mekong Securities, a leading Vietnamese
broker/dealer and investment bank.

Indochina has approximately 310 employees primarily located throughout Vietnam.
The company's locations include Indochina's fund management offices in Hanoi and
Ho Chi Minh City, associated securities firm offices in Hanoi, Ho Chi Minh City,
Hong Kong and Singapore, and several licensed foreign direct investment project
offices throughout Vietnam.

Indochina Capital was founded in 1999 by Co-Chairmen Peter R. Ryder and Rick
Mayo-Smith as a boutique investment and development firm focused on the
Indochina Region. These founding partners have been living and investing in
Vietnam since the early 1990s and were complimented by the addition of Tung Kim
Nguyen as the Group's third partner in 2002. The resulting 37 years of combined
partnership experience and lifelong pursuit of investment and financial services
activities have shaped Indochina Capital into one of Asia's most entrepreneurial
and rapidly growing financial services firms focused on Vietnam.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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