Beijing Enterprises Environment GroupLtd : COMPLETION OF VERY SUBSTANTIAL ACQUISITION AND CONNECTED TRANSACTION

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(Incorporated in Hong Kong with limited liability)

(Stock Code: 154) COMPLETION OF VERY SUBSTANTIAL ACQUISITION AND CONNECTED TRANSACTION

Reference is made to the Company's circular dated 24 June 2016 (the "Circular") relating to the very substantial acquisition and connected transaction in relation to the acquisition of equity interest in the Target Group. Unless otherwise expressly indicated, the capitalised terms used herein shall have the same meaning as those defined in the Circular.

The Board is pleased to announce that all Conditions of the Sale and Purchase Agreement had been fulfilled and Completion took place on 31 October 2016. Pursuant to the terms of the Sale and Purchase Agreement, the Consideration, being RMB1,850,000,000 (equivalent to approximately HK$2,202,300,000), is payable to BEHL and is to be satisfied by way of issue of the New Bonds to BEHL at Completion. Accordingly, upon Completion, the New Bonds were issued to Idata, a wholly-owned subsidiary of BEHL.

By order of the Board

Beijing Enterprises Environment Group Limited Wong Kwok Wai, Robin

Company Secretary

Hong Kong, 31 October 2016

As at the date of this announcement, the board of directors of the Company comprises five executive directors, namely Mr. E Meng, Mr. Ke Jian, Ms. Sha Ning, Ms. Qin Xuemin and Mr. Ng Kong Fat, Brian, and five independent non-executive directors, namely Dr. Jin Lizuo, Dr. Huan Guocang, Dr. Wang Jianping, Prof. Nie Yongfeng and Mr. Cheung Ming.