USA

Aqua America's Texas Subsidiary Purchases Water Systems in Llano and Burnet Counties

Aqua America, Inc. announced that its Texas subsidiary has acquired the water system assets of Pecan Utilities Co., Inc., in Llano County, and the water system assets of Cavern Springs Water Company in Burnet County in a single transaction of $394,000. The two systems collectively serve approximately 600 residents. Cavern Springs, the newer of the two subdivisions, includes two 45-acre tracts, which could be developed into smaller lots. Build-out is expected to be between 80 and 200 units. Pecan is an established subdivision, which still contains about 30-to-40 additional lots for development.

Aqua America also announced that its New Jersey subsidiary has acquired the stock of the Wallkill Water Company and the Wallkill Sewer Company, which each serve approximately 1,200 people in Hardyston Township, Sussex County. Aqua New Jersey paid $300,000 for each acquisition for a total of $600,000. The water and wastewater systems will be operated by Aqua's nearby Northern Division, which also manages the company's systems in Fredon and Vernon townships – the latter of which was acquired by Aqua New Jersey on November 23.

The acquisitions bring to seven the number of growth ventures for Aqua America's Texas operation this year and brings to four the number for New Jersey. In total, Aqua America subsidiaries have completed 19 acquisitions for this year. "Throughout the year, we've added several "tuck-in" acquisitions to our core service territory, which has a positive impact on the business by allowing Aqua to maximize our economies of scale," said Aqua America Chairman and CEO Nicholas DeBenedictis. Texas is one of Aqua America's fastest-growing states. Customer growth for Aqua Texas in the first nine months of 2010 is approximately two percent, with more than two thirds of that growth coming from acquisitions. Aqua New Jersey experienced one percent growth during the same 9-month period with more than half coming from acquisitions.

Aqua America is one of the largest U.S.-based, publicly-traded water utilities serving almost 3 million residents in Pennsylvania, Ohio, Illinois, Texas, New Jersey, Indiana, Virginia, Florida, North Carolina, Maine, Missouri, New York, South Carolina and Georgia. Aqua America is listed on the New York Stock Exchange under the ticker symbol WTR.

Aqua America – 08-12-2010