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Pennsylvania American Water Expands Wastewater Footprint

Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), announced today the acquisition of a municipal wastewater system in Beaver County in western Pennsylvania. The purchase price of the newly acquired system is approximately $1.8 million.

The system provides wastewater collection and treatment services to approximately 500 customers in Koppel Borough and a portion of Big Beaver Borough. Pennsylvania American Water already supplies drinking water service to residents in both boroughs.

"An important benefit of this transaction is the greater efficiency we will achieve through economies of scale by supplying both water and wastewater service to this community, while providing the expertise needed to meet increasing regulatory standards," said Pennsylvania American Water President Kathy L. Pape.

The transaction represents Pennsylvania American Water's first wastewater acquisition in Beaver County, joining the company's roster of wastewater operations serving approximately 17,000 customers in Chester, Clarion, Monroe, Pike and Washington counties.

Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), is the largest water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately 2.2 million people. Founded in 1886, American Water is the largest publicly traded U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs approximately 6,700 dedicated professionals who provide drinking water, wastewater and other related services to an estimated 14 million people in more than 30 states and parts of Canada. More information can be found by visiting www.amwater.com.

Contacts:

Pennsylvania American Water
Gary Lobaugh
T: 724-873-3674
M: 724-944-5148
gary.lobaugh@amwater.com

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