Pennsylvania American Water Announces Acquisition of Three Water Systems

Pennsylvania American Water, a wholly owned subsidiary of American Water (NYSE: AWK), announced today that it has closed acquisitions to purchase the assets of three water systems in northeast Pennsylvania. The combined purchase price of the newly acquired systems, which serve a total of nearly 500 people, is approximately $215,000.

In Lackawanna County, Pennsylvania American Water acquired the Lake Spangenberg Water Company in Jefferson Township and the Applewood Water Company in Carbondale Township. The company also purchased the Wildcat Park Corporation in Walker Township, Schuylkill County.

“These tuck-in transactions not only help expand our customer base, but they also provide the residents with long-term benefits in the quality and reliability of their water service and supply,” said Pennsylvania American Water President Kathy L. Pape. “The newly acquired systems are in close proximity to our existing northeast Pennsylvania operations, which reflects our continued focus on achieving increased economies of scale through regionalization.”

Pape noted that the company is making significant capital investments to upgrade its newly acquired systems. For example, the company plans to replace most of Lake Spangenberg’s distribution system, which has a history of breaks and service outages. Pennsylvania American Water also replaced chemical storage tanks and treatment equipment for the Wildcat Park system, plus new water meters using radio frequency technology are being installed for customers in each of these acquired systems.

Pennsylvania American Water 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 7,000 dedicated professionals who provide drinking water, wastewater and other related services to an estimated 15 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.