American Water Works Completed Acquisitions Total $30 Million.

VOORHEES, N.J.--(BUSINESS WIRE)--Aug. 5, 1998--American Water Works Company Inc. (NYSE:AWK) and its subsidiaries have completed 15 acquisitions during the six months ending June 30, 1998.

These acquisitions have added a population served of over 40,000 people in New Jersey, Pennsylvania, Illinois, West Virginia and Hawaii. These acquisitions totaled approximately $30 million in additional investment for facilities providing water and wastewater utility service.

American Water Works subsidiaries have signed agreements to acquire an additional 24 water and wastewater systems in both the public and private sector, adding additional population served of over 60,000 people. Most of these acquisitions will be finalized in 1998.

The results so far in 1998 underscore the success of American Water Works' commitment to providing high quality water and wastewater service to communities throughout the United States. The company has access to capital, the very latest technical expertise and nationwide regulatory expertise.

When these assets are teamed with dedicated professionals from an acquired system, customers can expect high quality service and economic strength well into the future.

Examples of American Water Works Company and its subsidiaries' acquisitions include:

-- A wastewater utility located on the eastern tip of Oahu, Hawaii, expanding the Company's geographic diversity and complementing the benefits of that diversity

-- The water system in Clarion, Pa. that, with a $2.2 million Pennsylvania Infrastructure Investment Authority (PENNVEST) loan, will make lower cost of water service possible

-- The International Trade Center in Mount Olive Township, N.J., where our utility subsidiary will supply an estimated 37 million gallons of water annually to over 30 multinational and domestic corporations

American Water Works Company is the largest and most geographically diverse investor-owned water utility business in the U.S. The Company, through its 23 utility subsidiaries, serves more than 7 million people in over 870 communities in 22 states. -0-

        AMERICAN WATER SYSTEM SUMMARY OF 1998 ACQUISITIONS

Subsidiary                      Name of Acquisition
----------                      -------------------

Hawaii-American                 East Honolulu Community
                                Services Inc.

Illinois-American               Brookview

Illinois-American               Rome Heights Homeowners
                                Association

Illinois-American               Vets Place Water Association

Illinois-American               Galena Knolls Water Company

New Jersey-American             Logan Wells Water Company

New Jersey-American             Mt. Olive Twp (International
                                Trade Center)

Pennsylvania-American           Clarion Twp General Authority

Pennsylvania-American           Fairview Water Company

Pennsylvania-American           National Utilities Inc.-Pocono
                                Division

Pennsylvania-American           Pocono Mountain Industrial Park
                                Authority

West Virginia-American          Van Public Service Department

West Virginia-American          Spruce Fork Public Service
                                Department

West Virginia-American          Jumping Branch-Nimitz Public
                                Service Department

West Virginia-American          Jackson's Mill



   CONTACT:  American Water Works
              Thomas G. McKitrick, V.P. - Investor Relations
              609/346-8200