�We believe the modest decline in tourist arrivals on Grand Cayman during the first half of 1999 was due to the closure of the Holiday Inn and Grand Pavilion hotels for redevelopment last year, temporarily removing 350 medium-priced rooms from the supply of lodging accommodations on the island,� commented Jeffrey M. Parker, Chairman and Chief Executive Officer. �In light of last month�s approval by the Central Planning Authority of plans for the construction of a new Holiday Inn on a new site, we believe an update regarding proposed
tourist-related projects on Grand Cayman might be of interest to investors. Projects currently under construction should add more than 300 rooms to the market during the balance of 1999 and close to 400 new rooms will be added to the island�s lodging inventory during the course of the year 2000. We believe these additions to hotel and condominium capacity will allow growth in tourism, and thus demand for water, to accelerate towards the end of this year and into the new millennium.�

A partial listing of construction projects on Grand Cayman Island which are located within Consolidated Water Co.�s exclusive license areas is provided below.

1. Holiday Inn -- 231 room hotel on Seven-Mile Beach. All planning approvals received. Target completion date September-November 2000.
2. Sun Suites -- 132 room �all suites� hotel adjacent to Seven Mile Beach. Construction underway. Expected to be on line late 1999.
3. MainStay Suites -- 132 room hotel on West Bay Road. Construction underway. Some rooms on line by Christmas 1999, with the balance finished by February 2000.
4. Grand Caymanian Beach Club and Resort�located on North Sound. Construction underway, with 109 rooms scheduled to come on line October 1999 and an additional 90 rooms available within twelve months.
5. The Pinnacle -- 42 luxury condos located on Seven Mile Beach. Construction underway, with completion scheduled for October-November 1999.
6. Ritz-Carlton -- 326 room hotel and 71 luxury condominium project. Demolition, land clearance and marketing underway, but no completion date has been announced.
7. Dart Properties�various projects under Dart family ownership, located within 230 acre tracts between North Sound and West Bay Road.  No specifics announced, but a major by-pass road across the property is presently under construction.

Consolidated Water Co. Ltd. develops and operates seawater conversion plants and water distribution systems in areas of the world where naturally-occurring supplies of potable water are scarce or nonexistent. It currently operates a public water utility in certain areas of the Cayman Islands under a 20-year exclusive License from the Government of the Cayman Islands. The Company has recently signed contracts for its first overseas operations
in the Commonwealth of the Bahamas.

This press release includes statements that may constitute �forward- looking� statements, usually containing the words �believe,� �estimate,� �project,� �expect� 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 relationship with the Government of the Cayman Islands, the ability to successfully secure contracts for water projects in other countries, the ability to develop and operate such projects profitably, and other risks detailed in the Company�s periodic report filings with the Securities and Exchange Commission. 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.