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Press release from Business Wire

American Water Announces Expansion in Virginia with Purchase of Dale Service Corporation

<p class='bwalignc'> <i><b>Agreement Expands Virginia American Water Into Wastewater Market</b></i> </p>

Thursday, May 02, 2013

American Water Announces Expansion in Virginia with Purchase of Dale Service Corporation

10:07 EDT Thursday, May 02, 2013

VOORHEES, N.J. (Business Wire) -- American Water Works Company, Inc. (NYSE: AWK), the largest publicly traded U.S. water and wastewater utility company, announced today that its Virginia American Water subsidiary has signed an agreement to purchase Dale Service Corporation, a wastewater utility company. The company will also file an application with the Virginia State Corporation Commission (SCC) for approval of the acquisition. The total value of the transaction is approximately $27.7 million. This agreement marks the entry of Virginia American Water, which is the largest investor-owned water utility in Virginia, into the wastewater services market.

“The acquisition of Dale Service Corporation is an excellent fit with our Virginia operations, as it allows us to create greater efficiency and economies of scale in providing wastewater service to an area where we already provide water service to customers,” said Jeff Sterba, president and CEO of American Water. “It also provides an important opportunity for growth into the wastewater market in this state.”

Dale Service Corporation currently provides wastewater collection and treatment services to approximately 20,000 customers (a population of about 65,000) in the Dale City portion of Prince William County. The company operates two wastewater treatment plants with a combined capacity of 9.2 million gallons per day. Since 1966, Virginia American Water has been providing water services to most of the Dale Service Corporation wastewater customers.

“We are pleased to be able to provide wastewater service to Dale Service Corporation's customers, the majority of whom already know Virginia American Water as their provider of high-quality water service,” said Virginia American Water President William R. Walsh. “Once we receive approval from the State Corporation Commission, we look forward to closing the transaction and providing wastewater services that reflect our commitment to environmental stewardship, customer service and corporate responsibility.”

As part of the purchase agreement, Dale Service Corporation's 22 employees will continue to operate the system under American Water ownership.

“We look forward to welcoming Dale Service's employees to the Virginia American Water team and benefitting from their expertise,” said Walsh.

The company anticipates receiving SCC approval and closing the acquisition during the second half of 2013.

Virginia American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water services to more than 300,000 people. Founded in 1886, American Water is the largest publicly traded U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs more than approximately 6,700 dedicated professionals who provide drinking water, wastewater and other related services to an estimated 14 million people in more than 30 states and parts of Canada. More information can be found by visiting www.amwater.com.

Cautionary Statement Concerning Forward-Looking Statements

Certain statements in this press release are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements relating our business and to the proposed transaction, including but not limited to, the expected completion of the proposed acquisition on a timely basis; the ability to satisfy closing conditions related to the proposed transaction, including obtaining regulatory approval, our anticipated capital investments and the ability to achieve our goals relating to integrating the new operations, involve risks and uncertainties.

Actual results could differ materially due to a variety of factors.

For further information regarding risks and uncertainties associated with American Water's business, please refer to American Water's annual, quarterly and periodic SEC filings. The Company undertakes no duty to update any forward-looking statement.

Click here to subscribe to Mobile Alerts for American Water.

American Water
Maureen Duffy
Vice President, Corporate Communications
856-309-4546
maureen.duffy@amwater.com
or
Edward Vallejo
Vice President, Investor Relations
856-566-4005
edward.vallejo@amwater.com

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