Cheryl E. Yanagida Named Regional Vice President of Western Water Company; Water Privatization Veteran to Spearhead Customer Effort in Greater Los Angeles Region.

SAN DIEGO--(BUSINESS WIRE)--Oct. 20, 1998--Michael Patrick George, president and chief executive officer of Western Water Co. (Nasdaq:WWTR), announced today that Cheryl E. Yanagida has been named regional vice president. She will be based in Los Angeles.

Yanagida will direct the company's marketing program in the greater Los Angeles area. Her immediate focus will be on developing and consummating water sales in the adjudicated groundwater basins underlying that region. The company closed the first of such transactions with the City of Inglewood on September 30.

Yanagida's background includes over 16 years of public infrastructure finance experience as an investment banker and financial advisor to local and state agencies in the Western United States. Her client base included a number of the prospective Western Water Co. customers overlying the basins in the Los Angeles region. Prior to joining Western Water Co., she was a director of business development for Golden State Water Co., a joint venture between U.S. Water LLC and Southern California Water Co. In that role, she emerged as a leader in the movement toward public/private partnerships of municipal enterprises with private operators.

"I look forward to combining my experience in the water market with Western Water Co.'s resource base to create attractive and innovative solutions for our clients. It's also exciting to be part of a well-financed and environmentally responsible company that has established itself as a leader in the developing water market in the Western United States," stated Yanagida.

"Cheryl's knowledge of the water resources market and her background in public finance will allow her to move quickly to establish an expanded customer base for the company in Southern California," said George. "This is an important part of our revenue plan over the next few years."

Yanagida will report to Zach McReynolds, vice president and director of Marketing and Customer Solutions.

Western Water Co. is a leading water resource company in the wholesale, non-regulated water market in the Western United States. Its principal activities include the acquisition, development and marketing of water supplies throughout the West.

Western Water Co.

Western Water Co. ("Western Water") acquires, develops and markets wholesale water supplies to cities and water districts in the Western United States. As the leading water resource company in the emerging wholesale, non-regulated water market, Western Water actively pursues opportunities to purchase historic and reliable water supplies that can be used to augment or supplement local municipal supplies. Future municipal growth in the West largely depends upon securing new long-term water supplies.

Traditional water suppliers are challenged to meet the demand, pressured by both environmental mitigation and population increase. In addition, local agencies do not have the financial resources to independently acquire and develop new water supplies. Western Water provides cities and water districts with water that (1) replaces reductions in historic sources, (2) supports growth, (3) increases reliability of supply, (4) replaces large capital investments and (5) minimizes long-term costs.

Statements contained in this release which are not historical facts are forward looking statements that involve risks and uncertainties that could cause actual results or future events to differ from those contained herein. Factors that could cause actual results or events to differ include the company's ability to purchase water rights and obtain financing and other factors and considerations detailed in the company's Securities and Exchange Commission filings.