American Water Announces Donald L. Correll as President and CEO

Business Wire, March 20, 2006

VOORHEES, N.J. -- American Water, the largest and most geographically diversified provider of water services in North America, today announced the appointment of Donald L. Correll as president and chief executive officer (CEO), effective April 17th. George MacKenzie, who has served as the Company's interim CEO since January 1, 2006, will continue as a non-executive member of the Company's Board of Directors.

Harry Roels, president and CEO of RWE AG, American Water's parent company said, "Mr. Correll has served in leadership roles in the industry for more than 30 years. He has also steered several companies through transitions, growth and expansion. This experience makes him a natural choice for American Water."

For the past three years, Correll has served as president & CEO of Pennichuck Corporation, located in Merrimack, New Hampshire. During his tenure, the company has reported solid financial performance and growth in market value and customer service.

Prior to that, Correll led United Water Resources of Harrington Park, New Jersey, as chairman, president and CEO. Under his direction, the company's market capitalization increased from $400 million to $1.8 billion, its revenue base grew from $150 million to $500 million, and the employee base quadrupled. He is also credited with expanding the customer base from 1 million in two states to 7.5 million in 19 states.

Correll held a variety of senior management positions with increasing responsibility over his more than 25 years with United Water Resources including senior vice president of Finance, CFO and treasurer. Correll was instrumental in the formation of a holding company and its' re-listing on the New York Stock Exchange and ultimately, led the company through the sale process to Suez Lyonnaise des Eaux.

Correll serves on the boards of a variety of civic, professional and business organizations, including the Environmental Financial Advisory Board of the United States Environmental Protection Agency and the National Association of Water Companies. In addition, he is a member of the Board of Directors of HealthSouth Corp. and Interchange Financial Services Corporation, and is a Commissioner of the New Jersey Water Supply Authority.

Correll is a graduate of The Pennsylvania State University and New York University, where he earned a BS in Accounting, and an MBA in Finance, respectively. He is also a Certified Public Accountant in New York.

Roels noted his appreciation for George MacKenzie's contributions over the past few months. "Mr. MacKenzie has provided solid leadership for American Water and I am very pleased that he has agreed to return to the company's Board of Directors as a non-executive member."

With a history of over 100 years, American Water provides high quality water, wastewater, and other related services at a fair price to over 18 million people in 29 states and 3 Canadian provinces. Employing approximately 7,000, American Water is the largest water services provider in North America. More information can be found by visiting www.amwater.com.

RWE AG, based in Essen, Germany, is one of the leading international utility companies. The company provides customers with electricity, gas and water, as well as services related to these products. RWE's core markets include Germany, the UK and Continental Europe. Major companies and millions of households throughout Europe rely every day on the RWE Group's products and services. In fiscal year 2005, approximately 85,000 employees worldwide within the RWE Group generated external revenue of nearly EUR 42 billion.