American Water to address state of U.S. water infrastructure

• Walter Howard to headline panel on water infrastructure challenges and solutions.

VOORHEES, NJ, Oct. 23, 2006 -- American Water, the largest water services provider in North America, today announced participation in the Strategic Research Institute's 2006 conference, "Infrastructure: A Growing Asset Class," held Oct. 26-27 in New York City. Walter Howard, American Water's senior vice president of sales and business development, will headline a panel discussion on water infrastructure and its relationship to successful asset management.

"The current state of U.S. water infrastructure is critical," said Howard. "We must recognize the significant place of water in maintaining human life and sustaining economic development." With a long history of investing in, and preserving water systems nationwide, American Water is uniquely positioned to meet the challenges of future water infrastructure requirement.

The panel discussion will highlight current infrastructure needs and possible solutions, with American Water at the helm. The company continues to demonstrate its overall commitment to customers by investing in infrastructure and distribution facilities to meet regulatory standards, ensure quality and reliable service and support growth. In 2006 alone, American Water has invested nearly $600 million to repair and replace water infrastructure. Some projects include:

-- A new $36 million state-of-the-art regional water treatment facility serving Pennsylvania's West Shore communities was brought online earlier this year.
-- Plans were announced for a new 15 mgd (million gallons per day) treatment facility to meet future demands in Illinois' growing Champaign County.
-- A new treatment plant is being built on the Kentucky River to add capacity to Lexington's regional service area.
-- A $55 million plant expansion is a work in progress to increase capacity to 80 mgd at an American Water treatment plant serving Somerset County, New Jersey.
-- $44 million is being invested to upgrade American Water's Joplin, Missouri facility to boost capacity from16 to 23 mgd.
-- A 12-mile, $9.8 million pipeline project has been completed to transfer water from a planned surface water treatment facility to Arizona's Agua Fria district and to an 8,800-acre master-planned community west of Phoenix.
-- An Arizona treatment plant is being designed to produce 15 mgd initially and can be expanded to an ultimate 80 mgd capacity to keep ahead of anticipated population growth in desert communities of southern Arizona.

"The EPA estimates that the nation's water utilities will need to make $277 billion in investments over the next 20 years to replace aging infrastructure," said Howard. "As an owner and operator of water utilities, American Water is fully prepared to make the necessary investments, ensuring the longevity and sustainability of our water systems for years to come."

The company is currently conducting research and investing in various technologies as part of a comprehensive asset management program. American Water also offers partnership to municipalities across the country, helping them meet increasingly stringent compliance requirements and infrastructure needs.

The City of Buffalo, for example, has recognized $21 million in savings through operational and financial improvements after a six-year working relationship with American Water. The partnership has made significant improvements to the city's water system, including the complete automation of customer records, the design and construction of a brand new customer service center and a new computerized maintenance and management system.

The Strategic Research Institute creates, produces and manages conferences covering industry specific business-to-business topics. Their globally recognized events provide powerful business research, education and information, which relates directly to market trends, global competition and technological change.

For more information on Strategic Research Institute's Infrastructure Conference please refer to the conference website: www.srinstitute.com/cx610, or call: 1-800-599-4950.

With headquarters in Voorhees, NJ, American Water (www.amwater.com) employs approximately 7,000 who provide high quality water, wastewater, and other related services to more than 18 million people in 29 states and Canada.

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