American Water Works Company, Inc. Increases Common Dividend Five Percent; Marks 25th Consecutive Yearly Increase.

Business Editors

VOORHEES, N.J.--(BUSINESS WIRE)--Jan. 6, 2000

The Board of Directors of American Water Works Company, Inc. (NYSE:AWK), at its regular meeting today, approved an increase in the quarterly dividend of 5% from 21 1/2 cents a share to 22 1/2 cents a share.

"This action by the Board," said President and Chief Executive Officer, J. James Barr, "follows a thorough review of the Company's operations and financial position and reflects continued confidence in the growth and development of the business. This marks the 25th consecutive year the Company's common dividend rate has been increased. Throughout this period, these increases have occurred while maintaining the Company's commitment to earnings growth generated by significant income retention and reinvestment. The Board's decision today signals continued belief in the ability of the Company to perpetuate this record. Recent major acquisitions announced in 1999 will, when completed and integrated, enhance the future prospects for the continuation of this performance."

The dividend is payable February 15, 2000 to shareholders of record on January 28, 2000. The Board also declared the regular quarterly dividends of 31 1/4 cents per share on the cumulative preferred stock, 5 percent series, and the 5 percent cumulative preference stock, and 53 1/8 cents per share on the cumulative preferred stock, 8.5 percent series (unlisted) all payable March 1, 2000 to shareholders of record on February 11, 2000.

American Water Works Company is the largest and most geographically diverse investor-owned water utility business in the U.S. The Company's utility subsidiaries and affiliates now serve approximately 10 million people in 23 states.