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April 15, 2009: NEW MANAGEMENT ACHIEVEMENTS IN SEVEN MONTHS: SEPTEMBER 08 - APRIL 09 Commitment of a multi-million dollar investment from new shareholders to be injected into KESC. Abraaj Capital is the premier private equity firm in the Middle East North Africa and South Asian (MENASA) region. Since its inception, the firm has played a key role in pioneering the private equity discipline in its chosen region and is generally regarded as both the largest and most globally respected player in its field and region (for further details visit www.abraaj.com). Abraaj currently has over US$7.5 billion of funds under management, typically through private equity buyouts and strategic minority block positions in companies, like KESC, that form the backbone of industrial and commercial activity in their chosen markets. Abraaj was approached in February 2008 to take a view as to both coming into KESC as a strategic investor in the business, as well as taking full management rights. It conducted a detailed due diligence process and found deep-rooted systemic weakness in the company’s operations, financial viability and culture, including a highly-eroded infrastructure and a clear public perception that KESC was ultimately failing itself and failing Karachi. Abraaj recognized that capital alone would nor resolve KESC’s issues and that the core challlenge facing KESC was one of a dysfunctional culture, compounded by weak management, a business whose issues could only be resolved through the decisive execution of a radical turnaround plan embracing all aspects of KESC’s underlying weaknesses. Abraaj agreed to match the incumbent shareholders’ equity of US$360 million and on 14th April 2009, KESC announced that it had secured an amendment to the Implementation Agreement (IA) between the company and the Government of Pakistan, through which the future of KESC could be secured through the introduction of substantial new capital from Abraaj. In the interim, starting in September 2008, over 40 new senior managers were introduced into the business to begin the process of turning the company around. Those first seven months form the basis of the deliverables outlined in the KESC “Scorecard” public accountability programme. Successfully negotiated an 180 MW plant deal with GE. Construction underway and plant to be online by September 2009. KESC has signed a Supply and Services Contract for a ‘Fast Track Power Plant Project’ of approximately 180 MW at KGTPS & SGTPS, replacing existing near obsolete turbines. The first phase of generation, adding 90 MW to the city’s grid, will be completed by mid-2009 and the remaining generation upgrade will follow shortly after. This addition comes as part of the continuing initiative by KESC to ensure self-reliance in meeting the city’s power needs, essentially increasing capacity to minimize power shortages in the city. The addition of 180 MW power through GE follows the addition of 96 MW at Korangi Thermal and 50 MW of rental power. The obsolescence of KESC’s existing plant is clear, given even the most basic measures. The average age of existing units is 27 years and 13 out of 19 units had exceeded their intended life cycle at the time that new management got engaged in the business. COD Installed Capacity Net Capacity Efficiency Bin Qasim 1983-97 1,260.0 1120.0 31.0% Korangi Thermal 1965-77 382.0 165.0 23.0% Korangi Town Gas 1978 80.0 72.0 19.4% SITE Gas 1979-80 100.0 72.0 20.5% Total 1822.0 1429.0