Pennsylvania-American Water Co. completes acquisition of Lehman Pike Water and Sewer Co. assets

HERSHEY, Pa., April 3, 2002 -- Pennsylvania-American Water Co., a subsidiary of American Water Works Co. Inc., announced Wednesday that it has completed the acquisition of the water and wastewater assets of Lehman Pike Water and Sewer Co. for $4 million.

"Today, we celebrate the beginning of a new partnership between the associates at Pennsylvania-American and our newest customers in Lehman and Middle Smithfield Townships," said Robert M. Ross, PAWC president and CEO.

The transaction expands Pennsylvania-Americans' water and wastewater customer base by 9,500 people in these communities in Monroe and Pike Counties.

"It's a great fit for Pennsylvania-American," said Ross. "We are the regional provider of water and wastewater service in the area."

Pennsylvania-American is the largest water utility in the state serving more than 2 million residents statewide, 45,000 of which reside in Wild Acres and Marcel Lake Estates in Delaware Township, Pike County. The company also has three other systems under agreement to be purchased, which serve Winona Lakes, Rustic Acres and Country Club of the Poconos.

In addition, as a result of the Lehman Pike acquisition, the company's wastewater customer base was increased by 34 percent, making Pennsylvania- American the largest regulated wastewater service provider in the Commonwealth, serving 37,000 people statewide.

"For the Lehman Pike customers, the transition will be transparent," said Ross. "We are committed to providing our new customers with the same high level of service and quality water our current customers are accustomed to receiving."

The only difference customers will notice is a new name on company vehicles and on their invoice for water and wastewater service.

Water rates and service standards will remain the same, he said. And, customers will still see the same faces reading meters and performing service calls as they have in the past.

Customers may also notice new construction, as system improvements are already underway. Pennsylvania-American plans to complete groundwater facility reliability improvements and sewer lift station upgrades. "We are dedicated to service excellence, focused on personalized solutions and committed to the health and welfare of our customers," said Ross.

New customers to Pennsylvania-American will also benefit from American Water Works' state-of-the-art Customer Service Center, which is staffed with customer service representatives 24 hours a day, seven days a week. Customers can also take advantage of Pennsylvania-American's Automatic Payment Program, whereby customers can save time and money by paying for their water and wastewater services directly from their checking or savings account. For more information on Pennsylvania-American's Automatic Payment Program or other services, customers can call toll-free (800) 565-7292.

"Completing the purchase of Lehman Pike is cause for celebration. I speak for all our associates when I say that we look forward to serving our new customers. We take pride in being a good corporate neighbor and emphasize the importance of maintaining a presence in the communities we serve," said Ross. "Our team of professionals is ready and committed to meeting the needs of all of our customers today and in the years to come."

About Pennsylvania-American: Pennsylvania-American provides service to over 2 million people in the Commonwealth. In total, the company owns and operates 39 water treatment facilities, three wastewater plants and more than 8,000 miles of pipeline to serve customers in 357 communities in 35 counties. Pennsylvania-American, with the support of its parent company, American Water Works, has the technical capabilities of a nationwide network and the local knowledge to provide the highest quality water with personal service.

About American Water Works: American Water Works Co. is the largest publicly traded US corporation devoted exclusively to the business of water. Its 6,600 associates provide water, wastewater and other related services to nearly 16 million people in 29 states and three Canadian provinces. More information can be found on the Web at www.amwater.com.