Aquarion Recognized as Top Water Utility Performer Of Nation's Investor-Owned Environmental Firms; Company Also Rated Most Profitable In Water Industry for 1999.

BRIDGEPORT, CT--(BUSINESS WIRE)--October 18, 1999--

The New Environmental Benchmarker and Strategist publication has recognized Aquarion Company (NYSE:WTR) as one of the nation's top environmental performers of 1999. The New Jersey-based publication also hails Aquarion as the most profitable of companies grouped in the Diversified Water and Wastewater Management category.

Such distinction comes on the heels of an April 1999 Wall Street Journal listing that cited Aquarion's stock as the best water utility performer in the nation from March 31, 1998 to March 31, 1999, according to Dow Jones Indexes. That list also rated Aquarion's stock as the 10th highest performer of all electric, gas and water utilities in the world.

President and Chief Executive Officer Richard K. Schmidt said the New Environmental Benchmarker and Strategist cover story is yet another indicator of the results of the company's successful growth strategy. "We believed that if we kept our eyes on our mission, our commitment would bear fruit. We are proud and delighted to be the recipient of such fine recognition," he added.

The New Environmental Benchmarker and Strategist also listed Aquarion as the top performer in the areas of market value and gross revenues, leverage and return on equity and gross revenues per employee.

In 1996, Schmidt announced a comprehensive growth strategy focused on building Aquarion's core water supply business. As a result, 1998 earnings hit a record high of $20 million, a 33 percent increase over 1997 figures.

The company's four-pronged strategy to increase shareholder value includes growth through infrastructure investment and acquisition of other water systems, land sales, productivity enhancement and the leveraging of core competencies for contract management opportunities with municipal water supply systems.

Aquarion is currently being acquired by the Kelda Group plc of Leeds of England. However, recent examples of the company's strategy are its BHC Company's ongoing acquisition of the closely held Village Water Company in Simsbury, Conn.; BHC's sale of 436 acres of surplus, off-watershed land in 1998 which contributed $10 million to Aquarion's annual revenues to fund water system improvements, and its Aquarion Management Services' signing of a $2.5 million contract over five years to operate the filtration plant for the town of New Castle, New York.

These efforts have helped Aquarion surpass an overall goal to deliver an average return on investment to shareholders of more than 10 percent. Aquarion's return totaled 56 percent the past two years and averaged 21.7 percent the past five years. Schmidt added that the company's financial results are the results of "good strategy and a good approach to our business."

The New Environmental Benchmarker and Strategist is a quarterly publication of TechKNOWLEDGEy Strategic Group, an environmental services management consultants, and Cortland Computer Services Inc., based in Boulder, Colorado and Hopelawn, New Jersey, respectively.

Aquarion Company is engaged primarily in public water supply. Its BHC and Sea Cliff Water Company subsidiaries together are among the 10 largest investor-owned water utilities in the U.S. and serve a population of more than 500,000 in 30 Connecticut and Long Island, N.Y. communities. Other businesses include real estate through the sale of surplus water company land, timber processing and contract management of municipal water systems.

Note to Reporters and Editors: For more information on Aquarion Company and its subsidiaries, please contact us on the Internet at www.aquarion.com or www.bhcco.com.