Philadelphia Suburban subsidiary acquires Woodloch Pines wastewater system

BRYN MAWR, Pa., Jan. 2, 2004 -- Philadelphia Suburban Corp announced that its Pennsylvania wastewater subsidiary, Suburban Wastewater, purchased the wastewater system serving Woodloch Pines, a popular 250-acre family resort in Pike County, Northeastern Pennsylvania.

PSC's Vice President of Corporate Development, Mark J. Kropilak said, "We are pleased to add Woodloch Pines to our growing customer base in the northeastern region of Pennsylvania. The resort is a popular destination for many people and we look forward to extending our superior operational experience to guests of Woodloch Pines."

PSC Chairman Nick DeBenedictis said, "The acquisition of the wastewater system serving Woodloch Pines caps off an exciting year for PSC. We completed a major acquisition of the AquaSource systems which put us in nine new states and added 130,000 customers, we announced the agreement to acquire Heater Utilities, a 52,000-customer water and wastewater system in North Carolina along with completing numerous smaller 'tuck-in' acquisitions that fit with our growth-through-acquisition strategy. We also announced a plan to change our name to Aqua America - a name that demonstrates our truly national presence - and that will be effective January 16."

Philadelphia Suburban Corporation is the nation's largest U.S.-based publicly-traded water utility, serving approximately 2.5 million residents in Pennsylvania, New Jersey, Illinois, Ohio, Maine, Indiana, Texas, Virginia, Florida, Missouri, Kentucky and North and South Carolina. Beginning January 16, 2004 PSC will be named Aqua America, Inc. and trade under the ticker symbol WTR. PSC's Pennsylvania operating companies will be named Aqua Pennsylvania, Inc.