CONSOLIDATED WATER CO. LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in United States dollars) The accompanying notes are an integral part of these financial statements. For the year ended December 31, 2000 1999 1998 Cash flows from operating activities Cash receipts from customers 9,919,966 7,841,289 8,102,406 Cash paid to suppliers and employees ( 5,876,811) ( 5,127,240) ( 5,542,642) Cash generated from operations 4,043,155 2,714,049 2,559,764 Interest received 32,314 594 28,062 Interest paid ( 152,757) ( 185,722) ( 267,084) Net cash provided by operating activities 3,922,712 2,528,921 2,320,742 Cash flows from investing activities Purchase of subsidiary, net of cash acquired (Note 3) ( 3,966,979) - - Purchase of property, plant and equipment ( 2,301,759) ( 1,543,368) ( 2,204,783) Proceeds from sale of property, plant and equipment  - 1,920 20,000 Net cash used in investing activities ( 6,268,738) ( 1,541,448) ( 2,184,783) Cash flows from financing activities Net proceeds from issuance of ordinary shares of common stock 5,368,945 146,060 12,958 Repurchase of ordinary shares of common stock ( 494,375) ( 758,928) ( 62,375) Proceeds from term loan - - 1,000,000 Increase/(decrease) in bank overdraft 32,938 591,359 ( 54,345) Repayment of principal on long term debt ( 885,355) ( 533,353) ( 190,111) Principal payments under Water Purchase Agreement ( 320,141) ( 344,304) ( 1,027,567) Dividends paid ( 1,127,295) ( 505,193) ( 457,912) Net cash provided by/(used in) financing activities 2,574,717 ( 1,404,359) ( 779,352) Net increase/(decrease) in cash and cash equivalents 228,691 ( 416,886) ( 643,393) Cash and cash equivalents at beginning of year 22,146 439,032 1,082,425 Cash and cash equivalents at end of year $ 250,837 $ 22,146 $ 439,032