Southwest Water subsidiary awarded RO operations contract in Torrance, Calif.

WEST COVINA, Calif., Dec. 4, 2001 — ECO Resources Inc., a subsidiary of Southwest Water Company has secured a five-year, $1 million contract with the Water Replenishment District of Southern California (WRD) to operate, manage and maintain a reverse osmosis water treatment plant in Torrance, Calif.

The newly constructed facility was officially placed in service during a dedication ceremony on Wednesday, Nov. 14, 2001.

The treatment plant uses state-of-the-art membrane technology to treat groundwater from a nearby well at a rate of approximately two million gallons per day. The raw well water entering the plant has a high mineral and salt content, and the reverse osmosis process reduces those substances to levels that surpass state and federal water quality standards.

Anton C. Garnier, Southwest Water president and chief executive officer, said, "We are excited about this partnership with the WRD. The Torrance facility marks our second reverse osmosis operations contract, joining the award-winning plant that we financed, helped to construct and now operate for the El Paso County Water Authority in Texas. We are actively seeking opportunities to assist other communities with similar projects in the future."

Dr. Bruce A. Mowry, WRD general manager said, "The WRD is pleased with our association with ECO Resources because, like us, it recognizes the plant as a vital component of the District's program to ensure safe and clean water for area residents and businesses. ECO is a well-established company, and we're confident it will maintain our high level of service and standards."

The WRD, which funded design and construction of the new plant, was formed in 1959 for the purpose of protecting groundwater resources and groundwater quality in the Central and West Coast Basins. The WRD manages 40 percent of the water used by residents and businesses in its 420-square-mile service area, which amounts to approximately 240 billion gallons of groundwater annually.

Southwest Water Company provides a broad range of services, including water production and distribution, wastewater collection and treatment, public works services and utility submetering. The company owns regulated public utilities and also serves cities, utility districts and private companies under contract. More than 1.5 million people in 29 states from coast to coast depend on Southwest Water for high-quality, reliable service.