American Water Works Chairman Cited as Industry Leader; Marilyn Ware Receives Keystone Center Award.

Business Editors

American Water Works Company announced that Marilyn Ware, the company's Chairman of the Board, had received the 2002 Keystone Center Award for Leadership in Industry. Ms. Ware recently accepted the honor during the Center's award ceremonies in Washington D.C.

The Keystone tribute cited Ms. Ware's inspired corporate leadership and commitment to public-private sector cooperation. In particular, it noted, "Under her direction, American Water Works Company has created important collaborative partnerships with various public sector agencies - Centers for Disease Control, Environmental Protection Agency, National Marine Fisheries Service and state and municipal agencies in a dozen states across the country." And for this work, the Center pointed out, "American Water has been honored by the U.S. Conference of Mayors and a range of environmental and economic development organizations, proving that the best path to progress on a full range of water-related issues...to the development of responsible public policy, and to the profitability of responsible corporate interests, comes from collaboration between private and public sector institutions and interests."

In addition to her leadership of American Water Works, the Keystone Center noted Ms. Ware's service on a dozen prestigious corporate, charitable and civic boards and her commitment to supporting the interests and needs of girls and women of all ages.

Marilyn Ware was named Chairman of the Board of American Water Works Company in 1988. She assumed this position after serving as Vice Chairman of the Board from 1984 to 1988 and as a member of the board since 1982.

She is a member of the Economic Advisory Board of RWE AG, a multinational company headquartered in Essen, Germany.

Additionally, among the various leadership positions she holds, she is a member of the Board of Trustees and the Executive Committee of The American Enterprise Institute for Public Policy Research, a trustee of Eisenhower Exchange Fellowships, a member of the Pew Oceans Commission and the National Council of the Conservation Fund.

Ms. Ware is also a board member of the University of Pennsylvania School of Medicine and Health System and a member of the Board of Directors of CIGNA Corporation and IKON Office Solutions.

Since 1994, The Keystone Leadership awards have recognized environmental, industry, community and government leaders for their leadership, outstanding problem-solving skills and their efforts to actively promote creative approaches to complex challenges through consensus. Ms. Ware joins three other recipients of the Keystone Center Award for 2002.

They are Dr. Paul Tebo, Vice President of Safety, Health, and Environment for DuPont, who received the Spirit of Keystone Award; Russell E. Train, founding member of the World Wildlife Fund, who received the Leadership in the Environment Award; and Senator Richard Lugar, the recipient of the Leadership in Government Award.

About American Water Works

American Water Works Company is the largest publicly traded U.S. corporation devoted exclusively to the business of water. Its 6,500 associates provide water, wastewater and other related services to 15 million people in 27 states and three Canadian provinces. More information can be found on the Web at www.amwater.com.

About the Keystone Center

The Keystone Center is an internationally acclaimed science public policy organization devoted to the development of actionable solutions to global energy, environmental and public health challenges and issues.

Forward looking statements in this report, including, without limitation, statements relating to the Company's plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.

These forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements.

These factors include, among others, the following: the success of pending applications for rate increases, inability to obtain, or to meet conditions imposed for, regulatory approval of pending acquisitions, weather conditions that tend to extremes of temperature or duration; availability, terms and development of capital; business abilities and judgment of personnel; changes in, or the failure to comply with governmental regulations, particularly those affecting the environment and water quality; competition; success of operating initiatives, advertising and promotional efforts; existence of adverse publicity or litigation; changes in business strategy or plans; quality of management; general economic and business conditions; the ability to satisfy the conditions to closing set forth in the definitive agreement; and other factors described in filings of the Company with the SEC.

The Company undertakes no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise.