American Water Names Kathy Pape New State President in Pennsylvania.

Company Increases Local Presence

VOORHEES, N.J. -- American Water, the largest water services provider in North America, announced today that Kathy Pape will assume the role of State President of Pennsylvania American Water.

In this role, Ms. Pape will lead the company's dedicated employees to serve customers throughout the Commonwealth. Pape will be the principal external contact for American Water in Pennsylvania and will dedicate significant time and energy to building and maintaining relationships with state and local officials, regulators and customers. She will also work closely with the local operating staffs to continue to enhance performance.

"Operating in 29 states, American Water recognizes the importance of having a strong local presence in every community we serve," said Don Correll, President and CEO of American Water. "Kathy will not only lead Pennsylvania American's dedicated employees to continue to deliver quality service to our customers in the Commonwealth, but her expertise and experience in both government and industry also make her uniquely suited to address varying customer needs and a perfect fit for our Pennsylvania operations."

Pape, a longtime resident of Pennsylvania was also educated in the state. She received her undergraduate degree from Edinboro University, her law degree from Dickinson School of Law in Carlisle, and her masters in taxation from Villanova University School of Law. Active in her community, Pape has dedicated 15 years of service to Whitpain Township as a member and Chair of its Planning Commission and as a member of its Zoning Hearing Board. She also sits on the Board of the Economy League of Greater Philadelphia, the Finance Council of the Archdiocese of Philadelphia and the Board of Trustees of Gwynedd Mercy Academy.

Pape is active with the National Association of Water Companies and the American Waterworks Association. As a nationally recognized expert on the water and wastewater industries, she has dedicated her career to improving water service to customers at reasonable rates, thereby enhancing economic development.

With more than 25 years of industry experience, Pape most recently served as Senior Vice President, Treasurer and Rate Counsel for Aqua America Inc. She was responsible for several departments since 1999, most importantly rates and regulatory relations, finance, strategic business planning, billing, accounts payable and payroll.

Pape is not new to American Water. She served as Regional Counsel and Manager of Finance from 1994 to 1999, when her responsibilities included rates and regulatory affairs, finance, budgeting and customer service for 10 states.

Pape also has worked as Vice President and Corporate Counsel for General Waterworks Management and Service Company in Pennsylvania, as Assistant Counsel to the Pennsylvania Public Utility Commission and as an Assistant Consumer Advocate for the Pennsylvania Office of Consumer Advocate.

With headquarters in Voorhees, NJ, American Water employs approximately 7,000 people who provide high quality water, wastewater and other related services to more than 18 million people in 29 states and Canada. More information can be found by visiting www.amwater.com.