Aquarion Unit To Operate New Castle, New York Water Treatment Plant; $2.5 Million Agreement Spans Five Years.

BRIDGEPORT, Conn.--(BUSINESS WIRE)--Jan. 6, 1999--Aquarion Company (NYSE:WTR) announced today that its Aquarion Management Services (AMS), Inc. subsidiary has been awarded a $2.5 million, five-year contract to operate the Millwood Water Treatment Plant in the Westchester County town of New Castle, New York. The contract is effective January 1, 1999.

A state-of-the-art water treatment facility, New Castle's plant was built in 1993 and provides public drinking water to 23,600 people in the communities of New Castle and Pleasantville. Its treatment capacity is 10 million gallons per day.

Treatment processes at the facility include the use of the latest and most advanced treatment technology, known as Dissolved Air Flotation (DAF). This treatment method is also used at several of Aquarion's BHC Company water treatment facilities in Connecticut and is widely recognized as an effective method to reduce the risk of waterborne diseases.

Commenting on the contract award, New Castle Town Supervisor, Clinton Smith remarked that "this public-private-partnership between New Castle, Pleasantville and Aquarion further emphasizes the commitment to provide our communities with a high-quality supply of water. "Aquarion's long and respected history as a public water supplier, together with the plant's talented work team, fortifies this customer service commitment," Smith said.

Aquarion President and Chief Executive Officer Richard K. Schmidt said Aquarion is fully committed to the partnership. "We are delighted to utilize our resources, capabilities and extensive DAF process knowledge to serve the citizens of New Castle and Pleasantville," Schmidt added. Aquarion is the owner and operator of one of the world's largest DAF facilities in Fairfield, Conn. Aquarion is also positioned to offer its regional water supply planning and operating capabilities to other southeastern New York communities.

Aquarion Company's principal business is public water supply. Through its BHC and Sea Cliff Water Company subsidiaries, it is one of the 10 largest investor-owned water utilities in the U.S. and serves a population of more than 500,000 in 30 Connecticut and Long Island, NY communities. AMS is a wholly owned Aquarion subsidiary that provides a fully integrated range of utility contract operating services to municipally owned water and wastewater systems. Other businesses include real estate through the sale of surplus water company land, and ownership of a small timber processing company.

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