Aqua America Acquires Lawrenceville Water System.

Acquisition Increases New Jersey Customer Base by 5 Percent

BRYN MAWR, Pa. -- Aqua America, Inc. (NYSE: WTR) announced today that it has acquired the Lawrenceville Water Company, which serves nearly 8,000 people in Lawrence Township, New Jersey in a stock transaction valued at $3.3 million including the assumption of $400,000 of debt. The system will be operated and managed by its New Jersey subsidiary, Aqua New Jersey, Inc.

Lawrenceville is the fourteenth acquisition for Aqua America companies this year. It is located in central New Jersey, equal distance between Princeton and the state capitol of Trenton, and is also the home of the renowned Lawrenceville Prep School.

"This is an opportune acquisition for our New Jersey operations as it neighbors our Hamilton, New Jersey headquarters and increases our customer base throughout the state by five percent," said Aqua America Chairman and CEO Nicholas DeBenedictis. "We are excited to have the opportunity to provide service to these customers who were virtually right in our back yard."

DeBenedictis said that Aqua New Jersey anticipates making needed capital improvements including installing new mains, a new radio frequency metering system, and improvements to its well treatment systems.

Aqua America is a publicly traded water and wastewater utility holding company with operating subsidiaries serving approximately three million people in Pennsylvania, Ohio, North Carolina, Illinois, Texas, New Jersey, New York, Florida, Indiana, Virginia, Maine, Missouri and South Carolina. Aqua America is listed on the New York Stock Exchange under the ticker symbol WTR.

This release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 that address, among other things, the projected investment in the acquired system, the effect of the acquisition of the described business, and possible benefits from the acquired operations. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including: the risk that the acquired company's business will not be successfully integrated; the risk that the proposed improvements will not be made as projected or have the indicated benefits; the costs related to the transaction; the risk that anticipated benefits will not be obtained or will not be obtained within the time anticipated; and other key factors that we have indicated could adversely affect our business and financial performance contained in our past and future filings and reports, including those filed with the Securities and Exchange Commission. Aqua America is not under any obligation--and expressly disclaims any such obligation--to update or alter its forward-looking statements whether as a result of new information, future events, or otherwise.

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