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AMERICAN WATER WORKS BUYS AVATAR'S FOUR MIDWEST UTILITIES

 NEW YORK, Jan. 30 /PRNewswire/ -- American Water Works Company, Inc. (NYSE: AWK) today announced that it will acquire the water utilities of Avatar Holdings, Inc. in four midwestern states.
 This acquisition, the largest by an investor-owned water supplier in a generation, will strengthen American's position in Indiana, Missouri and Ohio, where its subsidiaries already serve about 525,000 people, and will establish the company's first presence in Michigan.
 "The Avatar properties are a good addition to our substantial operations in Indiana, Missouri and Ohio in that they serve growth areas near Indianapolis, St. Louis, Dayton and Louisville," George Johnstone, president and CEO of American said. "And we are pleased to be able to extend our operations to Michigan.
 "Our board sees this acquisition as a significant affirmation of our commitment to grow by seeking new opportunities to do what we do best," he said.
 The Avatar water utilities being acquired by American are: Indiana Cities Water Company, which serves 200,000 people in 10 communities; Missouri Cities Water Company, which serves 105,000 people in five communities; Ohio Suburban Water Company, which serves 40,000 people in the north Dayton suburb of Huber Heights; and Northern Michigan Water Company, which serves 10,000 people in Calumet. The four companies have assets of about $125 million. They earned $3.1 million in 1991 on revenues of $26.9 million.
 With this acquisition, the American Water System will serve 5.4 million people in 623 communities in 21 states.
 The transaction will require regulatory approval in each of the four states.
 American Water Works Company, headquartered in Voorhees, N.J., is the nation's largest investor-owned water supplier. Its subsidiaries presently serve more than 5 million people in 606 communities from coast to coast.
 Its Indiana-American Water Company now serves 270,000 people in 24 communities; its Missouri-American subsidiary, 135,000 people in 13 communities, and its Ohio-American subsidiary, 110,000 people in 13 communities. In the transaction, these subsidiaries will acquire the Avatar companies in their respective states.
 "The American Water System has always taken pride in its ability to provide outstanding water service at competitive rates," Johnstone said. "Our financial resources, our staff of water supply professionals and our commitment to this single mission will be at the disposal of these 17 communities when the four Avatar companies join our family."
 American's earliest roots were in a partnership organized in Pennsylvania in 1882 to build water systems. The enterprise was incorporated in 1886 as American Water Works and Guarantee Company and reorganized in 1913 as American Water Works & Electric. The water utilities were spun off in 1947 and acquired by a Pennsylvania entrepreneur, John H. Ware, Jr., who merged them with water utilities he owned to form the core of today's American Water System. Since then, the American Water System has continued to grow through acquisitions.
 -0- 1/30/93
 /CONTACT: George W. Johnstone, president & CEO of American Water Works Company, 609-346-8201/
 (AWK)


CO: American Water Works Company, Inc. ST: New Jersey, Indiana, Missouri, Ohio, Michigan IN: UTI SU: TNM

SH -- NYSA004 -- 1070 01/30/93 16:05 EST
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Publication:PR Newswire
Date:Jan 30, 1993
Words:518
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