American Water Works Co. completes acquisition of Azurix North America

American Water Works Co. announced today that it has successfully completed the acquisition of Azurix North America and Azurix Industrial Corp. at a purchase price of $141.5 million plus the assumption of $6.1 million in debt.

VOORHEES, NJ, November 7, 2001 -- American Water Works Company, Inc., announced today that it has successfully completed the acquisition of Azurix North America and Azurix Industrial Corp. at a purchase price of $141.5 million plus the assumption of $6.1 million in debt.

This acquisition strengthens American Water's position as a premier provider of water resource management services in the U.S. and Canada.

"Completion of this acquisition is a significant milestone in American Water's history as it propels the company beyond its historical focus as a regulated water utility service provider," said J. James Barr, President and CEO of American Water. "The additional talent and diversity of services acquired through this transaction are key elements in American Water's growth strategy."

Azurix North America was a wholly-owned subsidiary of Azurix Corp. and provides a broad range of water and wastewater services, including operations and maintenance, engineering, carbon regeneration, underground infrastructure rehabilitation and residuals management.

The company has completed projects in 41 U.S. states and Canadian provinces, employs approximately 1,050 people and reported revenues in 2000 of $157 million.

Azurix Industrials Corp., also a former subsidiary of Azurix Corp., provides water and wastewater related technical, operation and maintenance services to industrial markets. The company reported revenues of $3.5 million for 2000.

After accounting for initial transition costs, the acquisition is expected to be accretive to American Water's earnings per share and cash flow in its first full year.

About American Water

With annual revenues of $1.5 billion, American Water Works Company is the nation's largest publicly traded enterprise devoted exclusively to the water and wastewater business. Its 6,300 associates provide ongoing water resource management services to businesses and communities in 27 U.S. states and 3 Canadian provinces. More information can be found on the Web at www.amwater.com.

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