American Water Works Company Inc. increases dividend 8.6 percent.

VOORHEES, N.J.--(BUSINESS WIRE)--Jan. 9, 1997--At its regular meeting Thursday the board of directors of American Water Works Company Inc. (NYSE:AWK) increased the quarterly common dividend rate 8.6 percent to 19 cents a share from the previous quarterly rate of 17 1/2 cents a share.

This is the 22nd consecutive annual dividend increase for the company's common stock. The dividend is payable Feb. 17, 1997, to shareholders of record on Jan. 24, 1997.

"This action reflects our board's confidence in the company's ability to execute its growth strategy and benefit from the opportunities presented by the continued consolidation of the water business," said George W. Johnstone, president and chief executive officer.

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, as well as 53 1/8 cents per share on the cumulative preferred stock, 8.5 percent series (unlisted), all payable March 1, 1997 to shareholders of record on Feb. 7, 1997.

American Water Works Co. is the largest investor-owned water utility company in the United States. Through its 22 wholly owned water utility subsidiaries, it serves over seven million people in more than 800 communities in 21 states.

CONTACT: American Water Works Company Inc., Voorhees

George W. Johnstone, president/CEO, 609/346-8200