CUC announces 2009 MAN B&W generation expansion

THE CLASS A ORDINARY SHARES OF CARIBBEAN UTILITIES COMPANY, LTD. ARE

LISTED FOR TRADING IN UNITED STATES FUNDS ON THE TORONTO STOCK EXCHANGE

UNDER THE TRADING SYMBOL: CUP.U

GRAND CAYMAN, CAYMAN ISLANDS, April 21 /CNW/ - Caribbean Utilities Company, Ltd. ("CUC" or the "Company") announced today that it has entered into a project agreement with its generation strategic alliance partner, MAN B&W Diesel AG ("MAN B&W") of Germany, for the purchase and turnkey installation of one 16 megaWatt (MW) V48/60 medium-speed diesel generating unit and auxiliary equipment. This project will cost approximately US$24.3 million to complete. The generating unit will be housed at the Company's North Sound Plant and will be commissioned in summer 2009.

"Residential and commercial development on Grand Cayman continues to grow at a steady pace," commented Richard Hew, CUC President and Chief Executive Officer. "The addition of this capacity enables us to continue to serve our customers reliably." He added, "Our alliance with MAN B&W Diesel has facilitated timely, efficient expansion and the longer term benefits of standardization of parts and service which allow us to minimize cost and maximize service reliability to our customers".

CUC entered a 10-year strategic alliance agreement with MAN B&W in 1998 to design and install diesel generating units on a turnkey basis for the Company's generation expansion programme. The strategic alliance provides CUC with "most preferred customer" pricing as well as other advantages associated with improved design and construction. The Company has installed three 12.25 MW V48/60 medium-speed diesel generating units, a 16 megaWatt (MW) V48/60 medium-speed diesel generating unit and an 8.4 MW gas turbine unit with MAN B&W since 2000.

Caribbean Utilities Company, Ltd., on occasion, includes forward-looking statements in its media releases, Canadian securities regulatory authorities filings, shareholder reports and other communications. Forward-looking statements include statements that are predictive in nature, depend on future events or conditions, or include words such as "expects", "anticipates", "plan", "believes", "estimates", "intends", "targets", "projects", "forecasts", "schedule", or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "should", "would" and "could". Forward-looking statements are based on underlying assumptions by their very nature and are subject to certain risks and uncertainties that may cause actual results to vary from plans, targets and estimates. Such risks and uncertainties include but are not limited to general economic, market and business conditions, regulatory developments and weather conditions. CUC cautions readers that actual results may vary significantly from those expected should certain risks or uncertainties materialize or should underlying assumptions prove incorrect. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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