Pennsylvania American Water Continues to Grow Water, Wastewater Footprint with Three New Acquisitions

Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), announced today that it has closed acquisitions in Clarion, Northampton and Lackawanna counties, comprising the assets of a municipal wastewater system, municipal water system and a privately operated water system. The total purchase price of the three newly acquired systems is approximately $1.4 million.

In Clarion County, Pennsylvania American Water acquired the assets of the Paint-Elk Joint Sewer Authority that provides wastewater service to approximately 1,000 residents. The company already provides water and wastewater service to nearly 15,000 people in adjacent communities, including Clarion Borough and Clarion Township. With this transaction, the Paint-Elk system joins Pennsylvania American Water’s roster of wastewater operations serving communities in Beaver, Chester, Monroe, Pike and Washington counties.

Pennsylvania American Water also purchased the water system assets of Scott Township in Lackawanna County. The water system currently serves the Scott Technology Park with five commercial and industrial customers, as well as the business park’s wastewater treatment facility. Pennsylvania American Water plans significant capital investments to upgrade water lines and improve the park’s water supply.

Pennsylvania American Water President Kathy L. Pape said, “Once improvements are in place to address the existing supply issues, Scott Township can boost its efforts to market the technology park and attract additional tenants.”

In Northampton County, the company acquired the assets of the Berry Hollow Water Company serving nearly 70 residents in Lower Bethel Township.

“Berry Hollow was a troubled water system that created a challenge for our company but also brought about positive change for the customers,” said Pape. “The system had a history of water quality and supply problems, and when we acquired it, the residents were under a boil water advisory. We committed the technical expertise and resources needed to resolve these issues, and within a week after closing, customers were receiving reliable service and no longer had to boil their tap water before using it.”

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 2.1 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 6,600 dedicated professionals who provide drinking water, wastewater and other related services to an estimated 14 million people in more than 40 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.