Connecticut Water Secures Management Contract to Operate UConn Water Systems.

STORRS, Conn. -- Connecticut Water Service Inc. (NASDAQ: CTWS) announced today that its subsidiary, New England Water Utility Services, has reached an agreement with the University of Connecticut to provide an on-site project manager to direct the day-to-day operation and management of the school's water systems at the Storrs campus.

The agreement became effective November 1st.

The project manager assigned to the University will be able to draw upon the experienced personnel and resources of Connecticut Water, which owns and operates three public water utilities in the state - the Connecticut Water Company, Crystal Water Company of Danielson, and Unionville Water Company in Farmington.

"Signing the contract with Connecticut Water Services is an important step to enhance the professional management of the University of Connecticut's water systems," said Linda Flaherty-Goldsmith, vice president and chief operating officer. "We are following the route mapped out by the University and the state Department of Public Health, which has provided us with excellent advice and technical assistance in developing the scope of the contract with Connecticut Water Services."

Connecticut Water Services has been providing a certified treatment plant operator to oversee the University's treatment facility for the past year and has performed cross connection inspections and tested and installed back flow devices at the Storrs campus over the past two years.

Marshall T. Chiaraluce, chairman and president of Connecticut Water, said the Company is pleased that the University chose Connecticut Water to oversee and manage the school's water systems.

"We look forward to a partnership with the University to operate the school's water systems and to ensure the water systems are in full compliance with state and federal regulations," said Chiaraluce. "Connecticut Water has every intention of seeking a long-term operating contract for the University's water systems when that goes out to bid."

The current agreement calls for Connecticut Water to conduct a full review of the University's water system, including operations and customer service practices, and to make recommendations on capital improvement and major maintenance projects. The Company will also conduct a leak detection survey of the water systems in order to locate sources of lost water to minimize unnecessary demands on the University's water supply sources.

New England Water Utility Services operates water and wastewater systems under contract for condominiums, schools, and municipalities, such as the towns of Durham and New Hartford. They provide specialized services such as leak detection, water quality monitoring, and cross connection inspections to various commercial and industrial clients throughout the State, as well as a water service line repair program for residential and commercial customers. Through this unregulated subsidiary, over $3.9 million in revenue was generated in 2004 and over $2.9 million in 2003.

Connecticut Water Service, Inc. is the largest, domestic-based, investor-owned water utility in New England. It provides water to over 80,000 customers in 41 towns in Connecticut, as well as providing water-related services under contract in municipalities and companies.

This press release may contain certain forward-looking statements regarding the Company's results of operations and financial position. These forward-looking statements are based on current information and expectations, and are subject to risks and uncertainties, which could cause the Company's actual results to differ materially from expected results.

Our water companies are subject to various federal and state regulatory agencies concerning water quality and environmental standards. Generally, the water industry is materially dependent on the adequacy of approved rates to allow for a fair rate of return on the investment in utility plant. The ability to maintain our operating costs at the lowest possible level while providing good quality water service is beneficial to customers and stockholders. Profitability is also dependent on the timeliness of rate relief, when necessary, and numerous factors over which we have little or no control, such as the quantity of rainfall and temperature, industrial demand, financing costs, energy rates, tax rates, stock market trends which may affect the return earned on pension assets, and compliance with environmental and water quality regulations. The profitability of our other revenue sources is subject to the amount of land we have available for sale and/or donation, the demand for the land, the continuation of the current state tax benefits relating to the donation of land for open space purposes, regulatory approval of land dispositions, the demand for telecommunications antenna site leases and the successful extensions and expansion of our service contract work, including maintaining the contract between the town of Barnstable and BWC. We undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.