Connecticut Water Completes Acquisition Of Unionville Water Company.

Business Editors

CLINTON, Conn.--(BUSINESS WIRE)--Oct. 31, 2002

Connecticut Water Service, Inc. (NASDAQ:CTWS) today successfully completed its acquisition of the Unionville Water Company.

Connecticut Water and Unionville Water filed a joint application for acquisition in February 2002. Unionville shareholders exchanged their Unionville stock for Connecticut Water Service, Inc. stock in a transaction valued at approximately $6.3 million. Unionville Water Company serves about 5,400 customers, or a population of approximately 19,000 people in the towns of Avon and Farmington, Connecticut.

According to Marshall T. Chiaraluce, Chairman and CEO of Connecticut Water, the Unionville acquisition will initially be neutral to earnings, but is expected to become accretive to earnings within 12 months. He stated, "Our acquisition of Unionville was contingent on regulatory approval for a rate increase for Unionville customers to cover the costs of an interconnection with the MDC that is under construction and a related water supply agreement. The DPUC in its final decision authorized a 30 percent rate increase for Unionville customers that we believe is sufficient to cover costs related to the interconnection and water supply agreement."

The interconnection between Unionville and the MDC is scheduled to be completed early next year and will alleviate seasonal water supply shortages that have existed at Unionville since the mid-1990's. The rate increase will be applied to Unionville customers when the interconnection is placed in service.

Unionville is the fourth major acquisition for the Company since 1999. In that time, acquisitions of viable, financially sound water utilities have grown Connecticut Water's customer base by nearly 21 percent, more than 17,000 customers representing a population greater than 60,000 people. All of the major acquisitions have been made through stock exchanges and have not significantly added to the Company's debt.

Connecticut Water has also acquired two municipal water systems in Connecticut that offer opportunities for expansion: The Town of Middlebury Water System, acquired in 2002, serves about 180 customers or a population of more than 600 people; and the Town of Killingly's Industrial Park Water System, acquired in 2001, serves about 51 customers or a population of 175.

Connecticut Water Service, Inc. is a non-operating holding company based in Clinton, Connecticut that wholly owns five regulated public water utility companies, including Unionville, and two non-regulated companies in water related businesses. Connecticut Water is New England's largest domestic, investor-owned water utility company, providing water service to more than 84,000 customers, or a population of about 295,000 people, in 42 Connecticut and Massachusetts towns. The non-regulated companies offer water and wastewater service to municipalities, businesses and water utilities.

In addition to Unionville, Connecticut Water's regulated water utilities include:

-- Connecticut Water Company, Clinton, Connecticut - largest subsidiary serving approximately 67,000 customers, or a population of 234,000, in 36 Connecticut towns.

-- Barnstable Water Company, Hyannis, Massachusetts, acquired in 2001 - serves approximately 7,100 customers, or a population of 25,000 people.

-- Crystal Water Company, Danielson, Connecticut, acquired in 1999 - serves approximately 3,600 customers, or a population of 13,000 people.

-- Gallup Water Service, Danielson, Connecticut, acquired in 1999

- serves approximately 1,200 customers, or a population of

4,000 people.

The non-regulated companies are as follows:

-- New England Water Utility Services, Inc. - provides contract

management and operation of water and wastewater systems, and

various water related services such as leak detection, billing

services, meter reading, etc.

-- Connecticut Water Emergency Services, Inc. - provides tanker

delivery of potable water in emergencies and for pool filling.

Some statements in this release may constitute "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward looking statements are based on current expectations and rely on a number of assumptions concerning future events, and are subject to a number of uncertainties and other factor that could cause actual results to differ materially from such statements.