Aquarion Stock Recognized as Nation's Best Among Water Utilities.

BRIDGEPORT, Conn.--(BUSINESS WIRE)--April 29, 1999--

Company Performance Also Rated 10th Highest of All Utilities in World

Aquarion Company stock (NYSE:WTR) was named best among water utilities in the nation from March 31, 1998 to March 31, 1999, according to a Wall Street Journal list of "The Best and Worst" performers of various industries throughout the U.S. and the world, according to Dow Jones Indexes. The list also rates Aquarion's stock as the 10th highest performer of all electric, gas and water utilities in the world.

Printed in the April 26 edition of the Journal, Aquarion is listed as the leading water utility stock performer in the U.S. Aquarion's stock closed at $27.50 on March 31, 1999 - which represents a 27.2 percent change from March 31, 1998. Aquarion stock closed at year-end 1998 at an all-time high of $27.33 per share on a post-split basis. On February 16, 1999, the company's Board of Directors approved a 3-for-2 split of its common stock. The split was payable on March 23, 1999 to all shareholders of record on March 1, 1999.

"We attribute this stellar achievement to our strategy for growth, and we are proud and delighted to receive such recognition of our performance," said Richard K. Schmidt, Aquarion president and chief executive officer.

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.

"Our record performance is a result of successful implementation of our four-pronged strategy to increase shareholder value," Schmidt said. "A proven blueprint, it includes growth through infrastructure investment and acquisition of other water systems, land sales, productivity enhancement and leveraging our core competencies for contract management opportunities with municipal water supply systems," he added.

Recent examples of Aquarion's strategy in action point to its BHC Company's steps to acquire the closely held Village Water Company in Simsbury, Connecticut; 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 totalled 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."

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 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.