GEORGE TOWN, GRAND CAYMAN, CAYMAN ISLANDS — (Marketwire) — Consolidated Water Co. Ltd. CWCO -9.12% (“Consolidated Water” or “the Company”), which develops and operates seawater desalination plants and water distribution systems in areas of the world where naturally occurring supplies of potable water are scarce or nonexistent, today reported its operating results for the first quarter of 2014. The Company will host an investor conference call on Tuesday, May 13, at 11:00 a.m. EDT (see details below) to discuss its operating results and other topics of interest.

First Quarter Operating Results
Net income attributable to the Company’s stockholders totaled $654,909, or $0.04 per diluted share, for the quarter ended March 31, 2014, compared with net income attributable to CWCO stockholders of $3,742,003, or $0.26 per diluted share, for the three months ended March 31, 2013. The decrease in net income from the first quarter of 2013 to the first quarter of 2014 was primarily attributable to lower earnings and profit sharing derived from the Company’s equity investment in its affiliate, OC-BVI, higher project development expenses incurred by the Company’s Mexico subsidiary, N.S.C. Agua, S.A. de C.V. (“NSC”), and lower operating income from the retail business segment.

Total revenues for the quarter ended March 31, 2014 decreased slightly (1%) to approximately $16.3 million, compared with approximately $16.6 million in the 2013 quarter.

Retail water revenues declined 4% to approximately $6.1 million (37% of total revenues) in the most recent quarter, versus approximately $6.4 million (39% of total revenues) in the first quarter of 2013. The reduction in retail revenues was due to an approximate 4% decrease in the number of gallons of water sold by the Company’s retail operations. Management believes this decrease in volume of retail water sold reflects rainfall for the first quarter of 2014 that was 12 times higher than that for the first quarter of 2013 and, to a lesser extent, the adoption of water conservation measures by certain large retail customers.

Bulk water revenues were relatively unchanged (up 1%) at approximately $10.0 million (61% of total revenues) in the first quarter of 2014, compared with approximately $9.9 million (60% of total revenues) in the prior-year quarter. The Company’s subsidiary, Consolidated Water (Bahamas) Limited (“CW-Bahamas”) supplied the aggregate amount of water contracted by the Water & Sewerage Corporation of The Bahamas (“WSC”) under the water supply agreement for the Windsor plant in July 2013, at which time such agreement expired. However, at the request of the government of The Bahamas, CW-Bahamas continues to supply water to the government of The Bahamas from this plant. The government of The Bahamas has not yet decided whether or not it will extend CW-Bahamas’ water supply agreement for the Windsor plant on a long-term basis.

Services revenues declined 9% to $275,913 in the quarter ended March 31, 2014, compared with $303,495 in the corresponding period of 2013, primarily due to a non-recurring sale of chemicals and materials to an unrelated company in the first quarter of 2013.

Consolidated gross profit declined 4% to approximately $6.0 million (37% of total revenues) in the three months ended March 31, 2014, versus approximately $6.2 million (38% of total revenues) in the three months ended March 31, 2013. Gross profit on retail revenues declined 11% to approximately $3.2 million in the most recent quarter (52% of retail revenues), compared with approximately $3.6 million (56% of retail revenues) in the year-earlier period. Gross profit on bulk revenues increased 7% to approximately $2.8 million (29% of bulk revenues), compared with approximately $2.7 million (27% of bulk revenues) a year earlier. The services segment recorded a negative gross profit of ($59,351) in the 2014 quarter, compared with a negative gross profit of ($9,030) in the first quarter of 2013.

Consolidated general and administrative expenses (“G&A”) increased 50% to approximately $5.3 million in the first quarter of 2014, compared with approximately $3.6 million in the year-earlier quarter, reflecting an approximate $1.5 million increase in NSC’s project development costs attributable primarily to a $1 million payment on an option agreement and a $350,000 payment resulting from a decision not to extend a letter of intent with an engineering, procurement and construction contractor. G&A expense increases also included $120,000 in additional professional fees, $124,000 in higher base salaries, and an increase of $27,000 in information technology expenses.

Interest income remained relatively consistent at $172,932 for the first quarter of 2014, versus $180,088 in the first quarter of 2013. Interest expense increased to $295,737 in the three months ended March 31, 2014, up from $135,425 in the prior-year quarter, reflecting the prepayment premium paid for the early redemption on February 17, 2014 of the remaining outstanding balance on the Company’s bonds payable and the amortization of the related bond discount and deferred issuance costs.

The Company recognized earnings and profit sharing on its investment in OC-BVI of $74,739 in the first quarter of 2014, compared with $1,075,320 in the first quarter of 2013. The additional earnings and profit sharing recognized in the 2013 quarter from this equity investment resulted from the payment by the British Virgin Islands government to OC-BVI in January 2013 of the remaining $2.0 million of the amount awarded OC-BVI as a result of the resolution of the Baughers Bay litigation.

Management Comments
“Two factors had a significant impact on the comparability of our first quarter results for 2014 and 2013,” noted Rick McTaggart, Chief Executive Officer of Consolidated Water Co. Ltd. “In February 2014, we paid $1 million to a previous NSC shareholder to exercise an option and avoid dilution of our existing ownership in our Mexican subsidiary, NSC, which increased our general and administrative costs for the quarter. This was a one-time expense that kept our ownership in the Mexican desalination project at 99.95%. Meanwhile, last year’s first quarter results benefited from the receipt by our OC-BVI affiliate of a $2.0 million payment from the British Virgin Islands government that was related to the resolution of the Baughers Bay litigation. These factors, combined with lower operating income for our retail segment and higher project development expenses at our Mexican subsidiary, were responsible for the decrease in profitability in the first quarter of 2014, relative to the prior-year period.”

“The profitability of our bulk water operations improved during the most recent quarter, as gross profit increased in dollar terms and as a percentage of revenues due to a very respectable increase in our Cayman Islands bulk water gross margin from 24% to 30% due to higher plant utilizations. Revenues and gross profit of our retail water segment in the Cayman Islands was adversely impacted by a 12-fold increase in rainfall during the first quarter of this year when compared to the same period in 2013.”

“We have been awarded three contracts this year by the Water Authority-Cayman in the Cayman Islands. The first is a new contract to refurbish the 800,000 gallon per day Lower Valley desalination plant in Grand Cayman, Cayman Islands. The second is a one-year extension through April 1, 2015 of the operating and maintenance contract for the 1.6 million gallon per day North Sound plant in Grand Cayman. Finally, we entered into a new contract to provide a 60,000 gallon per day desalination plant in Cayman Brac, Cayman Islands. The Lower Valley and Cayman Brac contracts were awarded to us through a competitive tendering process that included a number of overseas suppliers. This firmly underscored our competitiveness in our home market. The Lower Valley project will be completed during the first quarter of 2015, and completion of the Cayman Brac project is scheduled later this year,” concluded Mr. McTaggart.

Cash Dividends
On April 30, 2014, the Company paid a quarterly cash dividend of $0.075 per share for the 20th consecutive quarter. The Company has paid cash dividends to shareholders since 1985.

Investor Conference Call
The Company will host a conference call at 11:00 a.m. Eastern Time (EDT) on Tuesday, May 13, 2014. Shareholders and other interested parties may participate in the conference call by dialing 877-374-8416 (international/local participants dial 412-317-6716) and requesting participation in the “Consolidated Water Conference Call” a few minutes before 11:00 a.m. EDT on May 13, 2014.

A replay of the conference call will be available one hour after the call through Tuesday, May 20, 2014 by dialing 877-344-7529 (international/local participants dial 412-317-0088) and entering the conference ID # 10045961, and on the Company’s website atwww.cwco.com .

CWCO-E
About Consolidated Water Co. Ltd.

Consolidated Water Co. Ltd. develops and operates seawater desalination plants and water distribution systems in areas of the world where naturally occurring supplies of potable water are scarce or nonexistent. The Company operates water production and/or distribution facilities in the Cayman Islands, Belize, the British Virgin Islands, The Commonwealth of The Bahamas, and Bali, Indonesia.

Consolidated Water Co. Ltd. is headquartered in George Town, Grand Cayman, in the Cayman Islands. The Company’s ordinary (common) stock is traded on the NASDAQGlobal Select Market under the symbol “CWCO”. Additional information on the Company is available on its website at http://www.cwco.com .

This press release includes statements that may constitute “forward-looking” statements, usually containing the words “believe”, “estimate”, “project”, “intend”, “expect”, “should” or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company’s products and services in the marketplace, changes in its relationships with the governments of the jurisdictions in which it operates, the outcome of its negotiations with the Cayman government regarding a new retail license agreement, its ability to successfully secure contracts for water projects, including the projects under development in Baja California, Mexico and Bali, Indonesia, its ability to develop and operate such projects profitably, and its ability to manage growth and other risks detailed in the Company’s periodic report filings with the Securities and Exchange Commission (“SEC”).

By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

(Financial Highlights Follow)

                                CONSOLIDATED WATER CO. LTD.
                           CONDENSED CONSOLIDATED BALANCE SHEETS

                                                          March 31,    December 31,
                                                            2014           2013
                                                       -------------  -------------
                                                         (Unaudited)
        ASSETS
        Current assets
          Cash and cash equivalents                    $  24,693,011  $  33,626,516
          Certificate of deposit                           1,000,000              -
          Marketable securities                            8,596,543      8,587,475
          Accounts receivable, net                        23,815,493     18,859,560
          Inventory                                        1,370,036      1,383,135
          Prepaid expenses and other current assets        2,490,098      3,435,127
          Current portion of loans receivable              1,644,436      1,691,102
                                                       -------------  -------------
        Total current assets                              63,609,617     67,582,915

        Property, plant and equipment, net                57,881,089     58,602,886
        Construction in progress                           1,729,638      1,450,417
        Inventory, non-current                             4,243,526      4,204,089
        Loans receivable                                   6,916,027      7,337,177
        Investment in OC-BVI                               5,970,987      6,623,448
        Intangible assets, net                             1,044,966      1,096,488
        Goodwill                                           3,499,037      3,499,037
        Investment in land                                12,175,566     12,175,566
        Other assets                                       2,683,742      2,792,831
                                                       -------------  -------------
        Total assets                                   $ 159,754,195  $ 165,364,854
                                                       =============  =============

        LIABILITIES AND EQUITY
        Current liabilities
          Accounts payable and other current
           liabilities                                 $   6,768,431  $   7,157,896
          Dividends payable                                1,165,032      1,164,026
          Current portion of long term debt                        -      5,205,167
          Land purchase obligation                        10,050,000     10,050,000
                                                       -------------  -------------
        Total current liabilities                         17,983,463     23,577,089
        Other liabilities                                    264,827        289,392
                                                       -------------  -------------
        Total liabilities                                 18,248,290     23,866,481
                                                       -------------  -------------
        Commitments and contingencies
        Equity
        Consolidated Water Co. Ltd. stockholders'
         equity
          Redeemable preferred stock, $0.60 par value.
           Authorized 200,000 shares; issued and
           outstanding 37,408 and 37,408 shares,
           respectively                                       22,445         22,445
          Class A common stock, $0.60 par value.
           Authorized 24,655,000 shares; issued and
           outstanding 14,698,499 and 14,686,197
           shares, respectively                            8,819,099      8,811,718
          Class B common stock, $0.60 par value.
           Authorized 145,000 shares; none issued or
           outstanding                                             -              -
          Additional paid-in capital                      83,607,653     83,381,387
          Retained earnings                               46,705,864     47,155,548
          Cumulative translation adjustment                 (376,550)      (471,983)
                                                       -------------  -------------
        Total Consolidated Water Co. Ltd.
         stockholders' equity                            138,778,511    138,899,115
        Non-controlling interests                          2,727,394      2,599,258
                                                       -------------  -------------
        Total equity                                     141,505,905    141,498,373
                                                       -------------  -------------
        Total liabilities and equity                   $ 159,754,195  $ 165,364,854
                                                       =============  =============

                                CONSOLIDATED WATER CO. LTD.
                        CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                        (UNAUDITED)

                                                     Three Months Ended March 31,
                                                   --------------------------------
                                                         2014             2013
                                                   ---------------  ---------------

        Retail water revenues                      $     6,112,961  $     6,395,012
        Bulk water revenues                              9,959,736        9,856,690
        Services revenues                                  275,913          303,495
                                                   ---------------  ---------------
          Total revenues                                16,348,610       16,555,197
                                                   ---------------  ---------------

        Cost of retail revenues                          2,931,376        2,834,752
        Cost of bulk revenues                            7,111,545        7,187,413
        Cost of services revenues                          335,264          312,525
                                                   ---------------  ---------------
          Total cost of revenues                        10,378,185       10,334,690
                                                   ---------------  ---------------
        Gross profit                                     5,970,425        6,220,507
        General and administrative expenses              5,342,633        3,568,936
                                                   ---------------  ---------------
        Income from operations                             627,792        2,651,571
                                                   ---------------  ---------------

        Other income (expense):
          Interest income                                  172,932          180,088
          Interest expense                                (295,737)        (132,425)
          Profit sharing income from OC-BVI                 20,250          287,459
          Equity in earnings of OC-BVI                      54,489          787,861
          Other                                            198,296           89,133
                                                   ---------------  ---------------
            Other income (expense), net                    150,230        1,212,116
                                                   ---------------  ---------------
        Net income                                         778,022        3,863,687
        Income attributable to non-controlling
         interests                                         123,113          121,684
                                                   ---------------  ---------------
        Net income attributable to Consolidated
         Water Co. Ltd. stockholders               $       654,909  $     3,742,003
                                                   ===============  ===============

        Basic earnings per common share
         attributable to Consolidated Water Co.
         Ltd. common stockholders                  $          0.04  $          0.26
                                                   ===============  ===============

        Diluted earnings per common share
         attributable to Consolidated Water Co.
         Ltd. common stockholders                  $          0.04  $          0.26
                                                   ===============  ===============

        Dividends declared per common share        $         0.075  $         0.075
                                                   ===============  ===============

        Weighted average number of common shares
         used in the determination of:
          Basic earnings per share                      14,686,744       14,598,096
                                                   ===============  ===============
          Diluted earnings per share                    14,766,985       14,635,334
                                                   ===============  ===============

                                CONSOLIDATED WATER CO. LTD.
              CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
                                        (UNAUDITED)

                                                      Three Months Ended March 31,
                                                    -------------------------------
                                                          2014            2013
                                                    --------------- ---------------

        Net Income                                  $       778,022 $     3,863,687
        Other comprehensive income (loss)
            Foreign currency translation adjustment         100,456         (22,703)
                                                    --------------- ---------------
          Total other comprehensive income (loss)           100,456         (22,703)
                                                    --------------- ---------------
        Comprehensive income                                878,478       3,840,984
        Comprehensive income attributable to the
         non-controlling interest                           128,136         120,549
                                                    --------------- ---------------
        Comprehensive income attributable to
         Consolidated Water Co. Ltd. stockholders   $       750,342 $     3,720,435
                                                    =============== ===============

        For further information, please contact:

        Frederick W. McTaggart
        President and CEO
        (345) 945-4277
        or
        David W. Sasnett
        Executive Vice President and CFO
        (954) 509-8200 or
        via e-mail at info@cwco.com

        or

        RJ Falkner & Company, Inc.
        Investor Relations Counsel
        (800) 377-9893 or
        via e-mail at info@rjfalkner.com