Pennsylvania American Water Acquires Two Northeast PA Water Systems

  Pennsylvania American Water Acquires Two Northeast PA Water Systems

Business Wire

HERSHEY, Pa. -- March 13, 2013

Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK),
announced today the acquisition of two water systems in northeast
Pennsylvania. The combined purchase price of the newly acquired systems is
approximately $1.65 million.

In Wayne County, Pennsylvania American Water purchased the water system of the
Indian Rocks Property Owners Association, serving approximately 1,200
residents in Salem Township. In Lackawanna County, the company acquired the
Olwen Heights Water Company, which serves nearly 500 residents in Roaring
Brook Township. Both systems are in close proximity to Pennsylvania American
Water’s existing northeast Pennsylvania operations.

“These purchases follow our solid growth efforts in 2012 when we acquired a
total of six systems,” said Pennsylvania American Water President Kathy L.
Pape. “We continue to look for and capitalize on growth opportunities that
expand our customer footprint through regionalization while achieving greater
economies of scale, which also benefits our customers.”

Pape said the company plans to make significant capital investments to improve
water service and reliability for the newly acquired systems. For example,
Pennsylvania American Water will upgrade the wells and treatment facilities in
the Indian Rocks system, in addition to replacing aging water mains.

Pennsylvania American Water is the largest water utility in the commonwealth,
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.

This release contains forward looking statements, including, among others, our
plan to continue our long-term strategy of capital investment in our systems.
There are important factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking statements
including: general economic business conditions, unfavorable weather
conditions, changes in regulations or regulatory treatment and availability
and the cost of capital. We undertake no obligation to publicly update or
revise any forward-looking statement.

Contact:

Pennsylvania American Water
Terry Maenza
T: 610-670-7789 ext. 1009
M: 610-849-6484
terry.maenza@amwater.com