American Water Works Company, Inc. Announces Executive Management Changes.

VOORHEES, N.J.--(BUSINESS WIRE)--March 3, 1999--Daniel L. Kelleher, has been named Senior Vice President of American Water Works Service Company effective February 1, 1999. Kelleher was most recently President of New Jersey-American Water Company, Inc., a subsidiary of American Water Works Company, Inc.

In his new position, Dan will assume responsibility for American Water Works' (NYSE:AWK) regulated businesses in 22 states. Gerald C. Smith, Vice President of American Water Works Company, will now devote his full attention and broad array of water utility experience to strategic initiatives for American Water Works Company.

Kelleher began his career with the American Water System in 1972. He was named Vice President-Engineering of American Water Works Service Company, Inc., in 1985 and President of New Jersey-American Water Company in 1991.

Robert J. Gallo replaces Kelleher as President of New Jersey-American Water Company. Gallo was most recently President of American Water System Regional Companies in Maryland, Virginia, Tennessee, Iowa, Michigan, Ohio, New York, Connecticut, Massachusetts and New Hampshire. Gallo has 17 years of service with the American Water System.

Ray Lee replaces Gallo as President of the American Water System Regional Companies. Lee was most recently President of Illinois-American Water Company. Lee has 17 years of service with the American Water System.

"The continuing evolution of the water industry," said J. James Barr, President and Chief Executive Officer, American Water Works Company, "and the leadership role our Company is taking in this evolution is the catalyst for this transition in management."

American Water Works Company is the largest and most geographically diverse investor-owned water utility business in the U.S. The Company serves more than 7 million people in over 870 communities in 22 states. The Company remains committed to continued growth and is involved in a number of industry consolidation and privatization initiatives including water and wastewater system acquisition, contract operation and public/private partnerships.