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Connecticut Water Service, Inc. Reports 2012 and Fourth Quarter Earnings

Connecticut Water Service, Inc. Reports 2012 and Fourth Quarter Earnings

Earnings Total $1.55 Per Share - an Increase of 18.3% Over 2011

CLINTON, Conn., March 18, 2013 (GLOBE NEWSWIRE) -- Connecticut Water Service,
Inc. (Nasdaq:CTWS) (the "Company" or "Connecticut Water") announced net income
of $13.6 million and earnings per basic average share (EPS) of $1.55 for 2012,
compared to net income of $11.3 million and EPS of $1.31 for 2011. In 2012,
total revenue grew to $92.6 million from $75.6 million in 2011, an increase of
$17 million, or 22.4%. Total revenue includes all revenues generated by the
Company's three business segments: Water Activities, Services and Rentals, and
Real Estate.

The Company's results for 2012 include a contribution of $1.6 million to net
income, or EPS of $0.18, from The Maine Water Company ("Maine Water") and
Biddeford and Saco Water Company ("BSWC"), excluding CTWS's approximately $1.1
million of financing costs related to the acquisition of Maine Water.

2012 Operating Results

In 2012, income in the Water Activities segment, the Company's principal
business, grew by approximately $1.1 million to $11.3 million from $10.1
million in 2011, an increase of 11.5%. The gain was largely attributable to
increased revenue through the Maine Water acquisition and increases in the
WICA (Water Infrastructure and Conservation Adjustment) surcharge for eligible
infrastructure replacement investments in Connecticut. The Services and Rental
segment contributed $0.16 per share, which is an increase of $0.04 over 2011
performance. In 2012, the Real Estate segment generated EPS of $0.11 through a
sale of protected open space land to the Town of Plymouth, Connecticut. There
were no transactions in the Real Estate segment in 2011.

Acquisitions

On January 1, 2012, CTWS acquired from Aqua America, Inc. its former Maine
subsidiary, Aqua Maine, Inc., which was renamed Maine Water. On December 10,
2012, CTWS acquired BSWC. The 2011 fourth quarter and twelve month results do
not include the results of operations of Maine Water and BSWC. The first
eleven and half months of 2012 do not include the results of operations of
BSWC.

Eric W. Thornburg, Chairman, President and Chief Executive Officer of
Connecticut Water, said, "2012 was a historic year for Connecticut Water. We
grew our customer base by 35% through acquisitions, delivered increased
earnings for shareholders, and attained customer and employee satisfaction
levels among the highest we have seen."

Mr. Thornburg added, "In 2013, we will continue our focus on cost containment
and infrastructure investment. Our 2013 capital budget includes $31.3 million
in infrastructure investment for Connecticut and Maine with $15 million
targeted for WICA eligible pipeline replacements in Connecticut. In Maine,
guidelines for an investment recovery mechanism similar to WICA, the Temporary
Surcharge for Infrastructure Replacement and Repair (TSIRR), have been drafted
and are awaiting approval by the legislature and governor. We expect TSIRR to
be available to Maine Water and BSWC late this year or in early 2014."

Excluding Maine Water and BSWC, the Company's Operating Expenses increased
2.5% in 2012 compared to 2011. Expenses related to Operations and Maintenance,
depreciation, and taxes other than income taxes increased, but were partially
offset by a decrease in income tax expense.

Fourth Quarter Results

In the fourth quarter of 2012, the Company reported net income of $1.6 million
and basic EPS of $0.16. During the same period in 2011, the company reported
net income of $1.8 million and basic EPS of $0.21. Total revenue for the
quarter was $21.3 million, which was an increase from $17.0 million in the
same quarter of 2012. The increase in total revenue was attributable to the
acquisition of Maine Water and increases in the WICA surcharge.

Expansion in the state of Maine

In 2012, Connecticut Water completed two acquisitions in the state of Maine
that grew its overall customer base by 35%. On January 1, 2012, the Company
acquired Aqua Maine from Aqua America, which was renamed The Maine Water
Company. The Company completed the acquisition of Aqua Maine, Inc. from Aqua
America, Inc. for a total cash purchase price, adjusted at closing, of $35.6
million. Maine Water serves about 16,000 customers, or 48,000 people, across
the state of Maine.

On December 10, 2012, the Company acquired Biddeford and Saco Water Company
through a stock-for-stock merger transaction valued at approximately $12.0
million. Holders of BSWC common stock received shares of CTWS common stock in
a tax-free exchange. BSWC serves about 15,500 customers, or 35,000 people, in
four southern Maine communities.

Mr. Thornburg stated, "BSWC and Maine Water have joined forces and are
operating under the leadership of Maine Water's highly regarded leadership
team. We are focused on leveraging the economies of scale in Maine and seeking
opportunities to share staff, resources, systems and services between our
Maine operations to provide the best, most cost effective service for
customers while honoring our commitments to employees and shareholders."

Connecticut Water Service, Inc. is the largest publicly traded water company
based in New England. Through its wholly-owned public water utility
subsidiaries, The Connecticut Water Company, The Maine Water Company, and
Biddeford and Saco Water Company collectively provide drinking water to
approximately 122,000 customers, or about 400,000 people, in 76 municipalities
throughout the states of Connecticut and Maine.

The Connecticut Water Service, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=2893

                Connecticut Water Service, Inc. & Subsidiaries

Connecticut Water Service, Inc. & Subsidiaries
Condensed Consolidated Statements of Income (unaudited)
                                                           
(In thousands except per share amounts)    December 31, 2012 December 31, 2011
                                                           
Operating Revenues                         $83,838           $69,402
Other Water Activities Revenues            1,487             1,490
Real Estate Revenues                       1,450             --
Service and Rentals Revenues               5,786             4,682
Total Revenues                             $92,561           $75,574
Total Operating Expenses                   $64,229           $53,842
Other Utility Income, Net of Taxes         $812              $847
Total Utility Operating Income             $20,421           $16,407
Gain on Property Transactions, Net of      $951              $176
Taxes
Non-Water Sales Earnings (Services and     $1,424            $1,001
Rentals), Net of Taxes
Net Income                                 $13,640           $11,300
Net Income Applicable to Common            $13,602           $11,262
Shareholders
Basic Earnings Per Average Common Share    $1.55             $1.31
Diluted Earnings Per Average Common Share  $1.53             $1.29
Basic Weighted Average Common Shares       8,763             8,610
Outstanding
Diluted Weighted Average Common Shares     8,900             8,720
Outstanding
Book Value Per Share                       $16.94            $13.50


Condensed Consolidated Balance Sheets (unaudited)
                                                       
(In thousands)                         December 31, 2012 December 31, 2011

ASSETS                                                  
Net Utility Plant                      $447,911          $360,027
Current Assets                         36,362            18,881
Other Assets                           94,702            64,023

Total Assets                          $578,975          $442,931

CAPITALIZATION AND LIABILITIES                          
Shareholders' Equity                   $185,349          $118,189
Preferred Stock                        772               772
Long-Term Debt                         178,475           135,256
Current Liabilities                    15,877            30,428
Other Liabilities and Deferred Credits 198,502           158,286
Total Capitalization and Liabilities   $578,975          $442,931

News media contact:

                            Daniel J. Meaney, APR
                     Director of Corporate Communications
                       Connecticut Water Service, Inc.
                 93 West Main Street, Clinton, CT 06413-1600
                           (860) 669 8630 Ext. 3016

This news release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including, among others,
our long-term strategy and expectations, the status of our acquisition
program, the impact of our acquisitions, the impact of current and projected
rate requests and the impact of our capital program on our environmental
compliance. 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, the success of certain cost containment initiatives,
changes in regulations or regulatory treatment, availability and the cost of
capital, the success of growth initiatives and other factors discussed in our
filings with the Securities and Exchange Commission. We undertake no
obligation to update or revise forward-looking statements, whether as a result
of new information, future events, or otherwise.

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