Cal Water Affiliate Announces Award of Four New Contracts; Expands Into Second Western State.

SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 24, 1999--

CWS Utility Services (CWSUS), the non-regulated affiliate of the California Water Service Company (Cal Water), today announced the award of four new contracts: billing contracts for the cities of Vista and El Segundo, California; an operation and maintenance agreement for the Rural North Vacaville Water District (RNVWD) in Solano County, California; and an equity investment in a firm that was recently awarded a water meter reading contract in Santa Fe, New Mexico. -0-

Details of these contracts are as follows:

     -- Vista, located in northern San Diego County, awarded CWSUS a
     three-year contract to provide bi-monthly sewer billing and
     related customer service for 20,000 customers. This service is
     expected to begin in December 1999.

     -- El Segundo, located in Los Angeles County just south of Los
     Angeles International Airport, awarded CWSUS a five-year contract
     to provide water- billing services for its 4,500 accounts.
     Although relatively small, this contract is viewed as strategic,
     located as it is immediately adjacent to Cal Water's operations
     in the South Bay region of Los Angeles.

     -- RNVWD. CWSUS has been working with Solano County for about two
     years to design a new, domestic water system in an unincorporated
     part of the County. Construction will begin next Spring with
     operation expected to begin in early 2001. CWSUS was awarded a
     15-year operation and maintenance contract for this system in
     August 1999.

     -- Santa Fe, New Mexico recently awarded a five-year meter
     reading contract to QMS of Yorba Linda, California. CWSUS made an
     equity investment in this contract, which makes New Mexico the
     second state outside of California served by a subsidiary of
     California Water Service Group. CWSUS first expanded outside
     California with its purchase of two Washington water systems in
     August 1999.

"We are excited about these new partnerships," said Jim Good, Vice President of Marketing, CWS Utility Services. "They all lie within our core competency of providing water utility services, yet they are all examples of providing this service in a new way. The billing contracts are the first in cities outside of our existing service areas. Our contract with Solano County is our first design/build/operate agreement. And our investment in QMS's meter reading contract is not only our first such investment, but also our first foray into New Mexico," said Good."

The largest investor-owned water utility in California and Washington, California Water Service Group provides services to municipalities through CWS Utility Services, with contracts ranging from full-service utility operations to a la carte arrangements. Combined, these four contracts are estimated to increase total revenues by about $320,000 per year. With their award, total backlog for CWSUS and its affiliates will increase to nearly $76 million.

California Water Service Group is the parent company of the California Water Service Company, CWS Utility Services and Washington Water Service Company. Together these firms provide regulated and non-regulated water utility services to over 1.6 million persons in 62 communities in California and Washington. California Water Service Group's common stock trades on the New York Stock Exchange under the symbol "CWT". Additional information is available on our website at www.calwater.com.