American Water Works Company Announces SJW Corp. Stock Purchase.

Business Editors

VOORHEES, N.J.--(BUSINESS WIRE)--June 29, 2000

American Water Works Company announced today that it will periodically, and when economically feasible, make open market and privately negotiated purchases of SJW Corp. common stock.

In October of 1999 American Water Works Company and SJW Corp. announced their intent to merge. The shareholders of SJW Corp. approved the merger on April 20, 2000 and, as specified in the merger agreement, American Water Works is required to offer to acquire all outstanding shares of SJW Corp. common stock.

The merger of American Water Works and SJW Corp. is currently pending approval by the California Public Utilities Commission. On March 10, 2000, the companies filed a Notice of Intent to merge the companies, including the Proposed Joint Application, supporting testimonies and exhibits. This initiated a review process in accordance with Commission rules adopted in the fall of 1999. The first phase of the review process provides Commission Staff 20 days, from the day of filing, to identify supplementary information that may be significant to the remainder of the review process. American Water Works was notified of such needs and responded in a timely manner. The joint application was formally filed on May 16, 2000.

Commission Staff recently determined that hearings would be necessary to investigate the proposed merger. Hearings are a customary requirement of merger proceedings in California as they assist the Commission in ensuring that the merger is in the best interest of the customers of the utilities involved, and they allow the opportunity to address any other matters that may develop during the Commission's review of the Application.

In addition, due to the complexity of the issues, Staff has proposed a procedural schedule which would extend the review period 60 days beyond the timeframes included in the rules the Commission adopted last fall. The adjustment would result in an anticipated Order date of approximately March 19, 2001. American Water Works and SJW Corp. opposed such an extension and urged more expedited review. A prehearing conference occurred on June 22, 2000 at the Commission offices in San Francisco before the assigned Commissioner and Administrative Law Judge. The ALJ will issue a written Order in about 2 1/2 weeks establishing the procedural schedule and whether the companies should submit any additional direct testimony as to the appropriate standards of review or other issues.

American Water Works Company is the largest investor-owned water service enterprise based in the United States. The Company's, its subsidiaries and affiliates, provide water, wastewater and other water resource management services to more than 1000 communities in 23 states.

This release may contain certain forward looking statements involving known and unknown risks, uncertainties and other factors which 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: general economic and business conditions; competition; success of operating initiatives, advertising and promotional efforts; existence of adverse publicity or litigation; changes in business strategy or plans; quality of management; business ability and judgement of personnel; availability, terms and development of capital; and changes in, or the failure to comply with governmental regulations.