United Water Announces Agreement to Purchase WP Water Company

Business Wire, Feb 26, 2007

HARRINGTON PARK, N.J. -- United Water announced today that it has reached an agreement to acquire WP Water Company in Pennsylvania for $280,000. The transaction, subject to the approval of the Pennsylvania Public Utility Commission, is expected to close by the end of September.

"The addition of WP Water Company to our portfolio is in line with our strategy to grow by acquiring companies that are adjacent to our existing operations," said Robert Iacullo, COO of United Water's regulated business segment. "This acquisition strengthens our United Water Pennsylvania operation and increases our ability to provide excellent service and value to our customers. We look forward to serving our newest customers."

United Water Pennsylvania is a regulated water company owned by United Water. The company currently serves approximately 150,000 people in four operating areas throughout the state: Bloomsburg, Dallas, Harrisburg and Mechanicsburg. The WP Water Company, which is close to United Water's Dallas operation, serves about 500 people. It consists of two separate water systems: the Sleepy Hollow System and the Washington Park System.

As one of the nation's largest water services companies, United Water provides water and wastewater services to 7 million people in 20 states. The company is a subsidiary of the Suez Environment division of the Suez Group, which supplies sustainable solutions for essential environmental services (water, sanitation and waste services) to industrial and individual customers around the world.

United Water is a key component in the Suez strategy to expand its position in North America. The company recently announced that it intends to purchase Aquarion Water Company of New York which serves 50,000 people adjacent to United Water's service area in Westchester County.

In addition to acquisitions, Iacullo explained that United Water is pursuing growth through public-private partnerships with municipalities. The company currently operates 65 municipal water and wastewater operations through contract agreements. This includes four of the nation's largest municipal contracts: Milwaukee, WI, Indianapolis, IN, Gary, IN and Jersey City, NJ.

"Our new customers will benefit from the best of both worlds," said Iacullo. "They will of course receive the strong local management and service that United Water brings but will also benefit from access to the global resources of Suez. We are excited about expanding our presence in Pennsylvania."

ABOUT UNITED WATER

United Water provides water and wastewater services to 7 million people in the United States. In addition to owning and operating 25 regulated utilities, United Water operates 65 municipal systems through public-private partnerships and contact agreements including four of the nation's largest water and wastewater contracts. Founded in 1869, United Water is a subsidiary of the Suez Environment division of the Suez Group.

ABOUT SUEZ ENVIRONMENT

Suez Environment, a Suez business line, provides equipment and services that protect the environment and deliver the essentials of life. Its activities include drinking water production and distribution, wastewater collection and treatment, and waste treatment and recovery. Backed by its experience in the water and waste cycles, Suez Environment has a wide-ranging portfolio of know-how providing a sustainable solution to the requirements of local authorities and businesses. Suez Environment employs over 72,130 people worldwide and in 2005, generated turnover of 11.1 billion euros.