Middlesex Water Company Reports 2008 Financial Results

Market Wire, March, 2009

For additional information regarding Middlesex Water Company, visit the Company's web site at www.middlesexwater.com or call (732) 634-1500.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, our long-term strategy and expectations, the status of our acquisition program, the impact of our acquisitions, the impact of current and projected rate requests and the impact of our capital program on our environmental compliance. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including: general economic business conditions, unfavorable weather conditions, the success of certain cost containment initiatives, changes in regulations or regulatory treatment, availability and the cost of capital, the success of growth initiatives and other factors discussed in our filings with the Securities and Exchange Commission.

                          MIDDLESEX WATER COMPANY
                    CONSOLIDATED STATEMENTS OF INCOME
                  (In thousands except per share amounts)


                                                Years Ended December 31,
                                                2008      2007      2006
                                              ========  ========  ========

Operating Revenues                            $ 91,038  $ 86,114  $ 81,061
                                              --------  --------  --------

Operating Expenses:
  Operations                                    44,782    42,117    39,799
  Maintenance                                    4,147     4,123     3,546
  Depreciation                                   7,922     7,539     7,060
  Other Taxes                                   10,168     9,664     9,338
                                              --------  --------  --------

    Total Operating Expenses                    67,019    63,443    59,743
                                              --------  --------  --------

Operating Income                                24,019    22,671    21,318
                                              ========  ========  ========

Other Income (Expense):
  Allowance for Funds Used During
   Construction                                    667       537       632
  Other Income                                     906     1,153       160
  Other Expense                                   (271)     (163)      (18)
                                              --------  --------  --------

Total Other Income, net                          1,302     1,527       774
                                              --------  --------  --------

Interest Charges                                 7,057     6,619     7,012
                                              --------  --------  --------

Income before Income Taxes                      18,264    17,579    15,080
                                              ========  ========  ========

Income Taxes                                     6,056     5,736     5,041
                                              --------  --------  --------

Net Income                                      12,208    11,843    10,039

Preferred Stock Dividend Requirements              218       248       248
                                              --------  --------  --------

Earnings Applicable to Common Stock           $ 11,990  $ 11,595  $  9,791
                                              ========  ========  ========

Earnings per share of Common Stock:
  Basic                                       $   0.90  $   0.88  $   0.83
  Diluted                                     $   0.89  $   0.87  $   0.82

Average Number of Common Shares Outstanding:
  Basic                                         13,317    13,203    11,844
  Diluted                                       13,615    13,534    12,175

Cash Dividends Paid per Common Share          $  0.703  $  0.693  $  0.683



See Notes to Consolidated Financial Statements.