Groundbreaking Arid Climate Agribusiness

Sundrop Farms Holdings Limited a Pioneering arid Climate Agribusiness, Announced that Investment firm KKR Has Provided Growth Capital to the Company

- Sundrop Farms Holdings Limited("Sundrop Farms" or the "Company"), a pioneering arid climate agribusiness, announcedtoday that global investment firm KKR has provided growth capital to the Company and itswholly owned subsidiary Sundrop Farms Pty. Limited ("Sundrop Farms Australia").

Thefunding will be used to significantly expand Sundrop Farms' glasshouse facility in SouthAustralia and underpin its international development.

Sundrop Farms grows its crops in state-of-the-art glasshouses using a unique proprietarytechnology developed to address the water and food security issues typical to arid regions.

The "Sundrop System" uses concentrated solar power to create the heat, electricity, anddesalinated water needed to feed and power Sundrop's growing operations.

Philipp Saumweber, Sundrop Farms CEO, said, "We grow food where land is too arid forfarming, fresh water is in short supply and domestic food security is a concern.

Farming withtypical agricultural inputs would be unsustainable in these regions, so Sundrop usesrenewable energy to heat, power and water its crops.

Sundrop is the world's firstcommercially and environmentally sustainable arid climate agriculture business, and this

significant investment is at the heart of our growth strategy."

KKR's investment allows Sundrop Farms to scale its existing operations in Port Augusta,South Australia, by financing a 20-hectare greenhouse facility which will produce more than15,000 tons of vegetables annually for markets across Australia.

Sundrop and KKR intend todevelop a hub of agricultural innovation for arid climates in Port Augusta which will allow forfurther development in countries with similar environmental conditions.

Further to thosegoals, KKR's investment in Sundrop Farms will also support its plans to expand into theMiddle East, North America and other supply-constrained markets around the world.

"Sundrop Farms provides a unique and innovative solution to environmental challenges infarming," Justin Reizes,

Member and Head of KKR Australia, said. "KKR looks to invest in andpartner with companies that provide solutions to environmental and societal challenges.

Sundrop Farms epitomizes this effort, and we are delighted to work with this experiencedand knowledgeable team to pursue new growth opportunities in Australia andinternationally."

Internationally recognized contractors John Holland Group, Aalborg CSP, and Van derHoeven are managing the construction of the new facility.

The construction and operationof each hectare of Sundrop Farms glasshouses creates long-term green employment inregions of the world which might not otherwise be home to a high-value agriculturalindustry.

Construction of the Sundrop Farms Port Augusta expansion facility begins thismonth and is due for completion in 2016.

KKR has made its investment from its Asian Fund II. Additional terms of the transaction werenot disclosed.

Source: SundropFarms

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