Connecticut Water Service, Inc. Reports Record Earnings for 2003.

Business Editors

CLINTON, Conn.--(BUSINESS WIRE)--Feb. 11, 2004

Connecticut Water Service, Inc. (NASDAQ:CTWS), a water service company providing water to over 86,750 customers in 42 towns in Connecticut and Massachusetts, announced a 4.9% increase in net income for the year ended December 31, 2003, or $1.15 per basic share, as compared to $1.13 per basic share for 2002.

Highlights of the 2003 financial results are as follows:

-- 2003 was the 13th consecutive year of increased earnings as

well as the 34th consecutive year of increased dividend

payments (excluding dividends paid by companies subsequently

acquired and accounted for under the "pooling-of-interests"

method).

-- Non-Water Sales Earnings increased 65%, or $289,000, in 2003

as compared to 2002.

-- Income tax expense declined, in part, due to the tax benefits

associated with the donation of a 178-acre parcel of land in

2003 for open space purposes; compared to donations of a total

of 64 acres in 2002.

Marshall T. Chiaraluce, the Company's Chairman, Chief Executive Officer and President stated, "We are pleased with the increased earnings, especially in a year when our core water business generated lower water sales than expected due to the unusually cool and rainy summer weather. Our continuing success in our non-water business services in 2003 is due to higher profit margins on our service contract operations, increased customer enrollment in our Linebacker(R) program, and higher revenues from the leasing of telecommunications antenna sites."

            Connecticut Water Service, Inc. & Subsidiaries

Consolidated Statements of Income
(in thousands except per share data)

                                                        Year Ended
                                                        December 31,
                                                        2003     2002
                                                     -----------------

Operating Revenues                                   $47,115  $45,830
                                                     -------- --------
Operating Expenses
   Operation and Maintenance                          22,759   19,531
   Depreciation                                        5,684    5,187
   Income Taxes                                        2,008    4,482
   Taxes Other Than Income Taxes                       5,133    4,796
                                                     -------- --------
      Total Operating Expenses                        35,584   33,996
                                                     -------- --------
Utility Operating Income                              11,531   11,834
                                                     -------- --------
Other Income (Deductions), Net of Taxes
   Gain on Property Transactions                       1,029      440
   Non-Water Sales Earnings                              733      444
   Allowance for Funds Used During Construction          476      470
   Other                                                  76      126
                                                     -------- --------
      Total Other Income (Deductions), Net of Taxes    2,314    1,480
                                                     -------- --------
Interest and Debt Expenses
   Interest on Long-Term Debt                          4,016    3,909
   Other Interest Charges                                385      365
   Amortization of Debt Expense                          234      260
                                                     -------- --------
      Total Interest and Debt Expense                  4,635    4,534
                                                     -------- --------
Net Income Before Preferred Dividends                  9,210    8,780
Preferred Stock Dividend Requirement                      38       38
                                                     -------- --------

Net Income Applicable to Common Stock                 $9,172   $8,742
                                                     ======== ========


Weighted Average Common Shares Outstanding:
   Basic                                               7,956    7,718
   Diluted                                             8,002    7,771
Earnings Per Common Share:
   Basic                                               $1.15    $1.13
   Diluted                                             $1.15    $1.12


            Connecticut Water Service, Inc. & Subsidiaries

Condensed Consolidated Balance Sheets

----------------------------------------------------------------------
(In thousands)                                     Dec. 31,  Dec. 31,
                                                     2003      2002
----------------------------------------------------------------------

ASSETS
Net Property, Plant and Equipment                  $238,927  $232,654
Current Assets                                       11,236    10,373
Regulatory and Other Long-Term Assets                27,383    21,772
----------------------------------------------------------------------
     Total Assets                                  $277,546  $264,799
----------------------------------------------------------------------

CAPITALIZATION AND LIABILITIES
Common Shareholders' Equity                         $83,315   $79,975
Preferred Stock                                         847       847
Long-Term Debt, Excluding Current Portion            64,754    64,734
Current Portion of Long-Term Debt and Loans Payable   9,954     7,192
Other Current Liabilities                             5,157     8,286
Deferred Credits and Other Liabilities              113,519   103,765
----------------------------------------------------------------------
     Total Capitalization and Liabilities          $277,546  $264,799
----------------------------------------------------------------------

Connecticut Water Service, Inc. is the largest, domestic-based, investor-owned water utility in New England. It provides water to over 300,000 people in 42 towns in Connecticut and Massachusetts, as well as providing water-related services under contact to 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 and 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. We undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.