Southwest Water acquires Texas utility

Southwest Water Company completed acquisition of a Texas utility consisting of 86 water systems and 11 wastewater systems from Tecon Water Holdings, L.P. The approximately $63 million purchase price was paid by the assumption of approximately $18 million in existing debt and the remainder in cash.

LOS ANGELES, July 23, 2004, (BUSINESS WIRE) -- Southwest Water Company completed acquisition of a Texas utility consisting of 86 water systems and 11 wastewater systems from Tecon Water Holdings, L.P. The approximately $63 million purchase price was paid by the assumption of approximately $18 million in existing debt and the remainder in cash. Southwest Water recently expanded its primary credit facilities by $30 million to provide additional liquidity in anticipation of this acquisition. The utility systems serve approximately 21,000 water and 4,000 wastewater connections in Texas.

Anton C. Garnier, Southwest Water chairman and chief executive officer, said, "This transaction marks an important step in our strategic plan for long-term, profitable growth. It expands our existing Texas presence into the Dallas/Fort Worth and east Texas regions. Within the next three months, Southwest Water anticipates completing the acquisition of a small water and wastewater utility owned by Tecon in Oklahoma."

Southwest Water Company provides a broad range of services: water production, treatment and distribution; wastewater collection and treatment; public works services; utility billing and collection; and utility infrastructure construction management. The company owns regulated public utilities and also serves cities, utility districts and private companies under contract. More than two million people in 35 states from coast to coast depend on Southwest Water for high-quality, reliable service. Additional information may be found on the company's Web site: www.swwc.com.

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