Subscription Announcement
Phnom Penh Water Supply Authority's Offering of Equity Securities

        Phnom Penh Water Supply Authority "PPWSA" is pleased to publicly announce that PPWSA has received final approval and registration from the Securities and Exchange Commission of Cambodia (SECC) on the Disclosure Document for its Initial Public Offering (IPO). In this regard, PPWSA, with assistance of TONGYANG Securities (Cambodia) Plc. "TYSC" acting as the sole underwriter, would like to invite public investors – successful, unsuccessful and non-participating investors in the book-building – who wish to subscribe, to apply for the subscription of our equity securities offering for listing on Cambodia Securities Exchange.

In order to subscribe to PPWSA's offered equity securities, investors are advised to read and make decision based on the disclosure document prior to the subscription.

1. Summary of Offering

1) Issuing company: Phnom Penh Water Supply Authority ("PPWSA")
2) Underwriter: TONGYANG Securities (Cambodia) Plc
3) Offering price per equity securities: KHR 6,300 (Par value: KHR 1,000)
4) Type of equity securities: Equity securities with voting rights (ordinary shares)
5) Total number of offering equity securities: 13,045,975 (Offering ration: 15%)
6) The total number of issues shares before IPO: 73,927,187 Ordinary Shares and 391,100,942 Class A Shares
7) The total number of issues shares after IPO: 86,973,162 Ordinary Shares and 391,100,942 Class A Shares
8) Total offering amount: KHR 82,189,642,500

2. Subscription period and venue

1) Date : Mar 29 ~ April 4 (Five working days)
2) Time: Morning 08:00 ~ 12:00 / Afternoon 13:00 ~ 17:00
3) Venue: ACLEDA Securities HQ (as selling agent for TYSC ) and its counters at ACLEDA Bank's branch offices around Phnom Penh and in Kandal, Siem Reap, Battambang and Kampong Cham Provinces (Please see the addresses in the annex).

3. Subscription Procedure

1) Investors should obtain investor ID from SECC
2) Investors should have Securities Trading Account at any securities firm licensed by SECC
3) Investors shall fill in the subscription form available at the above-designated locations
4) Investors shall deposit the amount of cash equal to 100% of the total value of the subscription in the subscription form into PPWSA's bank account at ACLEDA Bank and get the deposit slip/voucher from ACLEDA Bank as follows:
       a. For successful investors in the book-building: make an additional deposit, if necessary, to the book-building deposit in order to make it equal to the subscription amount filled in the subscription form.
       b. For unsuccessful investors in the book-building: make an additional deposit, if necessary, to the book-building deposit, if any, in order to make it equal to the subscription amount filled in the subscription form.
       c. For non-participating investors in the book-building: make 100 per cent deposit of the subscription amount filled in the subscription form.
5) Investors shall submit the subscription form attached with the deposit slip/voucher and other required documents at the above-designated locations.

Important Note:

• Investors shall read the Disclosure Document and understand risks related to equity investment prior to subscription.
• Investors who have not had Investor ID and Trading Account should hurry to apply for and obtain the Investor ID at SECC and open Trading Account at any securities firm licensed by SECC before submission of subscription application form.
• Investor should have a commercial bank account for the purpose of refund, if any.

4. Minimum Subscription

The minimum size of subscription is 100 shares and in case the quantity of securities intended to subscribe is excess of the minimum size, the subscribed shares shall be multiples of the minimum size.

5. Subscription qualification

6. Allotment Procedure
1) Allotment plan for each group of investors as followings:

        a. At least 20 % of the total Publicly Offered Shares (2,609,195 shares) shall be allotted to Cambodian citizen Investors except to the extent otherwise permitted by the SECC
        b. In cases where applications for subscription from either Investor Group do not reach Allotted Quantity of Shares as set forth above, the remaining Shares that have not been subscribed by such Investor Group shall be re-allotted to the Investor Group with excessive applications, on a pro rata basis
        c. Allotment is not available to an investor whose number of allotted shares is less than 10.
        d. The fractional number resulting from allocation shall be treated by rounding off below 0.5 in order to minimize the fractional number of unsubscribed Shares
        e. The Shares remaining after allotment or re-allotment shall be deemed to have been subscribed by TYSC and shall be allotted to TYSC
2) For ESOP: Each employee of ESOP shall be allotted with an amount determined by PPWSA with consent by employees pursuant to the resolution of the BOD on 15th February 2012 taking into account of seniority and salary amount.
3) For Successful Investors:
     a. As a general principle, a Successful Investor shall be allotted with quantity of shares based on the pre-calculated quantity of shares that has been determined in the Book Building Process.
     b. A successful investor can subscribe to the shares less or more than the pre-calculated number of shares notified as a result of the book-building:
           • In case the total subscription by the successful investors is less than the total quantity of shares reserved for the book-building, such successful investors who subscribe to less than the pre-calculated quantity of shares or not subscribe at all shall be mandatorily and automatically allotted with the shares worth of at least the 10% deposit in the book-building.
           • In case the subscription by a successful investor exceeds the pre-calculated of shares to that investor, such successful investor shall first be allotted with quantity of shares that is equivalent to the pre-calculated quantity of shares; and if there is a shortage of demand in either the Successful Investors' Group or the Other Investors' Group, then such unsubscribed shares shall be allotted to all such successful investors on a pro rata basis.
4) For Other Investors: Other Investors shall be allotted with the shares on a pro rata basis.

7. Attention

1) Investors may lose some or all of investment; and return on investment is subject to risk.
2) Subscription will be regarded as invalid where:
        a. Subscription without Investor ID, Trading account, commercial bank account for refund or other required documents for subscription
        b. Any discrepancy among names on subscription application form, Trading account and commercial bank account
        c. Subscription by a representative without a valid Power of Attorney
3) An investor, whether a Cambodian Investor or a Non-Cambodian Investor, shall not be permitted to apply more than one subscription form.
4) In case of any discrepancy of subscription deposit amount between a subscription application form and a bank statement, an investor shall be regarded to subscribe either one of them, whichever is smaller.
5) The Subscription Deposit and any excess amount shall not bear any interest during holding period up to the date of payment to the issuing company, or to the corresponding subscribers.
6) After completion of the subscription, in case that there are subscribers, who did not get their total subscribed securities, PPWSA, with the assistance of TYSC, shall refund the remaining cash for the subscription to the subscribers after deducting any and all the expenses, fees and costs including, without limitation, bank transfer fee for the refund
7) Any parts of subscription notice subject to change prior to subscription period. PPWSA and TYSC will inform investors of change in case of any change.

8. Announcement of Subscription Result
PPWSA with assistance of TYSC will notify investors of subscription result through the official websites as well as newspapers:

1) Official Websites
        a. SECC: www.secc.gov.kh
        b. PPWSA: www.ppwsa.com.kh
        c. ACLEDA Securities: www.acledasecurities.com.kh and
        d. ALCEDA Bank: www.acledabank.com.kh
2) Newspapers: Phnom Penh Post, Koh Sontepheap and Rasmei Kampuchea

For more information about subscription, please contac: 016 261 266 (PPWSA), 023 860 800 (TYSC), 023 723 388 (ACLEDA Securities)