SUBSIDIARIES

Msinsi Holdings (Pty) Ltd (“Msinsi”) (100%)

Msinsi continues to provide services to Umgeni Water in terms of land and wildlife management surrounding Umgeni Water major dams and treatment works. In 2007 Msinsi reported a loss of R1m (2006:4,6m profit). The prior year profit was primarily attributable to the recognition of Biological assets.

Umgeni Water Services (Pty) Ltd (“UWS”) (100%)

UWS’ main business is holding of investments and carrying out other commercial activities. UWS’ generated a profit for the year of R1.5m (2006:R1.3m),attributable to its 18.5% share in Durban Water Recycling and the sale of its 26% share in Watertite Conservation ( Pty) Ltd. Tungro Water Services ( Pty) Ltd, one of UWS’s subsidiaries, ceased trading in 2004 and the application for deregistration was submitted during 2006/07.