American States Water Company Announces Dismissal of Court Cases.

SAN DIMAS, Calif. -- American States Water Company (NYSE:AWR) is pleased to announce that Southern California Water Company ("SCW"), a wholly owned subsidiary of AWR, has been ordered dismissed from the final 2 water quality cases coordinated in the Sacramento County Superior Court and involving water served by the company in the customer service area of Sacramento County. The "final ruling" was issued by Judge Esgro presiding over these matters and the company's Order and Judgment of Dismissal was finalized by the Judge on October 15, 2004. The Plaintiffs have 60 days in which to file an Appeal.

The court dismissed the case on the basis that the plaintiffs have failed to present any evidence that the water utilities, including SCW, provided water contaminated in excess of, or in violation of, federal and/or state drinking water standards. SCW has long asserted that it meets and exceeds the requirements to provide water within the standards established by the health authorities, and will continue to meet or exceed those standards.

Principle issues in these cases have been addressed by the Court of Appeals in 1999 and the California Supreme Court in 2002, setting the stage for this Dismissal. SCW is regulated by the California Public Utilities Commission ("CPUC") in many aspects of its operations, including the rates it is allowed to charge its customers, and the quality of the water it delivers. In addition, the California Department of Health Services ("DHS"), together with the United States Environmental Protection Agency, sets standards for the healthfulness of water served. DHS works with the CPUC to ensure the regulated water companies meet these standards.

American States Water Company is the parent of Southern California Water Company, American States Utility Services, Inc. and Chaparral City Water Company. Through its subsidiaries, AWR provides water service to 1 out of 30 Californians located within 75 communities throughout 10 counties in Northern, Coastal and Southern California and to approximately 12,000 customers in the city of Fountain Hills, Arizona and portions of Scottsdale, Arizona. The Company also distributes electricity to approximately 22,000 customers in the Big Bear recreational area of California. Through its non-regulated subsidiary, American States Utility Services, the company contracts with various municipalities, the U.S. Government and private entities to provide various services, including billing and meter reading, water marketing and operation and maintenance of water and wastewater systems.