CITIZENS REPORTS NEW HIGHS IN REVENUES AND NET INCOME FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 1995.

STAMFORD, Conn.--(BUSINESS WIRE)--August 14, 1995--Citizens Utilities reported record revenues and net income for the second quarter and six months ended June 30, 1995, Leonard Tow, chairman, announced today.

Financial Results

Citizens' revenues for the 1995 second quarter grew 34% to $251.7 million, up from revenues of $187.1 million during the corresponding quarter last year. Net income of $41.9 million for the 1995 second quarter rose 10% over net income of $38.0 million during the corresponding quarter last year. Earnings per share of 19 cents for this year's second quarter was unchanged over earnings per share reported in the comparable 1994 second quarter.

For the six months ended June 30, 1995, revenues of $518.7 million were up 27% over revenues of $409.3 million during the same period last year. Net income of $75.8 million for this period was up 9% over the net income of $69.7 million during the same time last year. Earnings per share of 36 cents for this period was unchanged over earnings per share during the corresponding period in 1994.

Revenues and Net Income

Commenting on the financial results, Mr. Tow said, "We are pleased with the performance of the telephone properties acquired from GTE. Revenues increased significantly, in large part due to the contributions of the newly acquired telephone properties, as well as to the continued above-average growth of Citizens' other telephone operations." Mr. Tow added, "The net income increase for the first half of 1995 reflects very strong operating results which compensated for the loss of a roughly $13 million after-tax subsidy payment to Citizens' California telephone operations in the corresponding prior year six-month period. For comparative purposes, if the subsidy payment in 1994 is eliminated, net income of $75.8 million for the first half of 1995 represented an increase of 34% over the adjusted net income of $56.7 million for the corresponding period in 1994.

Earnings Per Share

"The same-level earnings per share for the first half of 1995 as compared with the like period in 1994 stems from the subsidy loss and the effect of the 19-million share sale Citizens completed in January of this year as part of its financing for the GTE transaction. The financing in roughly equal portions of equity, debt and cash ensures Citizens strong credit ratings and allows the company to maintain one of the highest-quality balance sheets among publicly traded companies.

"Citizens is having its finest year ever. If all continues well, we expect 1995 to be our 51st consecutive year of increased revenues, net income and earnings per share," Mr. Tow added. "Due to the combined impact of the subsidy loss and the equity sale in the same year, Citizens' rate of growth in earnings per share will probably be modest."

Strong Prospects

Looking ahead, Mr. Tow stressed, "We are in business for the long term. We firmly believe Citizens' prospects are strong. We continue to aggressively position the company as a full service telecommunications operator and a diversified provider of utility services in above-average growth markets."

Citizens Utilities (NYSE: CZNA, CZNB) is a diversified service company providing telecommunications services, natural gas distribution, electric distribution, and water and wastewater treatment services to over 1.4 million customers in 18 states. Citizens has a significant investment interest in Centennial Cellular Corp., a cellular telephone company, and owns Electric Lightwave, Inc., a competitive telecommunications services provider operating in five major cities in the western United States. -0-

            Citizens Utilities Company and Subsidiaries
                    Summary of Income Accounts
               for the Three Months and Six Months Ended
                       June 30, 1995 and 1994
                            (Unaudited)
               (000 omitted except for per-share amounts)

                 3 Months Ended June 30        6 Months Ended June 30
                    1995         1994            1995         1994
Revenues          $251,678     $187,130         $518,712    $409,285
Expenses:
  Operating
   expenses        151,443      103,920          320,182     253,714
  Depreciation      38,103       24,618           77,496      50,019
                   189,546      128,538          397,678     303,733

Income from
 operations         62,132       58,592          121,034     105,552

Other income,
 net                14,924       11,455           27,779      23,361
Interest expense    21,007       14,825           43,704      27,962

Income before
 income taxes       56,049       55,222          105,109     100,951

Income taxes(1)     14,110       17,206           29,266      31,281
Net income        $ 41,939     $ 38,016         $ 75,843    $ 69,670

Earnings per share of
 common stock(2)

Series A             $0.19        $0.19            $0.36       $0.36
Series B             $0.19        $0.19            $0.36       $0.36

Average common
 shares
  outstanding      218,861      196,774          213,504     195,703

NOTES:

(1) Includes provision for Federal income taxes of $12,275 and
$14,109 for the three months ended June 30, 1995 and 1994,
respectively; and $25,461 and $25,650 for the six months ended June
30, 1995 and 1994, respectively.

(2) Earnings per share is based on the weighted average number of
outstanding shares adjusted for subsequent stock dividends.  The
effect on earnings per share of outstanding stock options is
immaterial.

CONTACT: Arthur Dague

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