Aquarion completes sale of IEA testing subsidiary.

BRIDGEPORT, Conn.--(BUSINESS WIRE)--March 26,1997--Aquarion Company (NYSE:WTR) today reported that it has completed the previously announced sale of its IEA environmental testing laboratory subsidiary to a private company for about $10 million.

Richard K. Schmidt, Aquarion's president and chief executive officer, said, "This transaction completes our divestiture of non-core businesses and now we can concentrate our resources on growing our public water supply business where we see an array of opportunities.

"Additionally," Schmidt said, "we will use the proceeds from the sale to reduce debt and strengthen an already solid balance sheet."

Aquarion Company's principal business is the protection, treatment and supply of public water. 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 500,000 in 30 Connecticut and Long Island, NY communities. Other businesses include real estate through the sale of surplus water company land, and contract management of municipal water systems. Aquarion also owns a small timber processing company.

CONTACT: Aquarion Company, Bridgeport

Larry L. Bingaman, [phone]

Adrienne Vaughan, [phone]