Philadelphia Suburban Subsidiary Acquires Woodloch Pines Wastewater System; Acquisition caps off year of significant growth.

Business Editors

BRYN MAWR, Pa.--(BUSINESS WIRE)--Dec. 31, 2003

Philadelphia Suburban Corporation (NYSE:PSC) announced today that its Pennsylvania wastewater subsidiary, Suburban Wastewater, purchased the wastewater system serving Woodloch Pines, a popular 250-acre family resort in Pike County, Northeastern Pennsylvania.

PSC's Vice President of Corporate Development, Mark J. Kropilak said, "We are pleased to add Woodloch Pines to our growing customer base in the northeastern region of Pennsylvania. The resort is a popular destination for many people and we look forward to extending our superior operational experience to guests of Woodloch Pines."

PSC Chairman Nick DeBenedictis said, "The acquisition of the wastewater system serving Woodloch Pines caps off an exciting year for PSC. We completed a major acquisition of the AquaSource systems which put us in nine new states and added 130,000 customers, we announced the agreement to acquire Heater Utilities, a 52,000-customer water and wastewater system in North Carolina along with completing numerous smaller 'tuck-in' acquisitions that fit with our growth-through-acquisition strategy. We also announced a plan to change our name to Aqua America - a name that demonstrates our truly national presence - and that will be effective January 16."

In addition to the Woodloch Pines acquisition announced today, PSC announced or completed the following growth ventures in 2003.

    1.  March 2003 - Consumers New Jersey Water Company (CNJ)
        completed the purchase of the water system assets of Deep Well
        Terrace, which serves approximately 150 residents in North
        Hanover Township, Burlington County, New Jersey.

    2.  May 2003 - Consumers Illinois Water Company (CIWC) completed
        the purchase of the assets of the Village of Grant Park water
        system that serves approximately 1,500 residents in Grant
        Park, Kankakee County.

    3.  July 2003 - PSC completed the previously announced acquisition
        of AquaSource Inc.--a subsidiary of DQE (NYSE:DQE)--for an
        estimated purchase price of approximately $195 million in
        cash. The 130,000 customer acquisition expanded PSC's customer
        base by more than 20 percent and its operations to a total of
        15 states. PSC now has operations in Pennsylvania, Ohio,
        Illinois, Texas, New Jersey, Indiana, Virginia, Florida, North
        Carolina, Maine, Missouri, New York, South Carolina and
        Kentucky.

    4.  July 2003 - CIWC began serving the Prairie Trail and Enclave
        subdivisions in Lake County Indiana by way of an
        infrastructure extension of CIWC's existing Willowbrook
        infrastructure. The new housing developments add nearly 1,500
        residents upon construction completion.

    5.  August 2003 - Pennsylvania Suburban Water Company (PSW)
        acquired the Jefferson Heights water system, serving
        approximately 450 residents in Jefferson Township, Lackawanna
        County.

    6.  August 2003 - PSW acquired Maple Crest water system, serving
        approximately 100 residents in Kingston Township, Luzerne
        County.

    7.  August 2003 - PSW purchased the assets of the Sunrise Estates
        and Windsor Farm water system, serving approximately 350
        residents in Kingston Township, Luzerne County.

    8.  October 2003 - PSW purchased the water system assets of Cedar
        Lane Water Association, Inc. that provides water service to 95
        residents in the development of the same name in Kingston
        Township, Luzerne County, PA.

    9.  November 2003 - PSW has purchased the water system assets of
        Pine Beach Water Supply that provides water service to 56
        customers in a residential development of the same name
        located in Paupack Township, Wayne County, PA.

    10. November 2003 - PSC announced that it had reached an agreement
        with ALLETE Water Services, a subsidiary of ALLETE, Inc.
        (NYSE:ALE), to acquire its water and wastewater systems,
        Heater Utilities, Inc., located in Cary, North Carolina. The
        systems add 47,000 water and 5,500 wastewater customers to
        PSC's base.

    11. December 2003 - PSW completed the purchase of the water assets
        of the Pinecrest Lake water system, which serves more than 600
        residents in Tobyhanna Township, Monroe County.

    12. December 2003 - PSC's Suburban Wastewater subsidiary announced
        the acquisition of the Pinecrest Lake wastewater system
        serving more than 600 residents along with several commercial
        customers and a large regional high school.

    13. December 2003 - CIWC announced the acquisition of the assets
        of the Oakview Avenue Water Works, providing service to 325
        residents in Joilet Township, Will County, Illinois.

    14. December 2003 - CIWC announced the acquisition of the assets
        of the Village of Indianola water system, serving
        approximately 450 residents in Vermillion County Illinois.

    15. December 2003 - PSC's North Carolina subsidiary, Hydraulics,
        Ltd. announced the purchase of the Forest Pines water system
        in Davidson, near Kannapolis, North Carolina serving
        approximately 75 residents.

    16. December 2003 - Hydraulics, Ltd. received approval to gain
        numerous expanded territories to serve 10 new developer
        systems that will provide water to more than 2,100 residents
        throughout the state.

    17. December 2003 - PSW announced receipt of approval from the
        Pennsylvania Utility Commission (PUC) to serve the
        600-resident Charlestown Meadows development in Chester
        County.

    18. December 2003 - Consumers Ohio Water Company was awarded a
        three-year contract to operate the water system serving the
        unincorporated areas of Ashtabula County in Northeastern Ohio.

Philadelphia Suburban Corporation is the nation's largest U.S.-based publicly-traded water utility, serving approximately 2.5 million residents in Pennsylvania, New Jersey, Illinois, Ohio, Maine, Indiana, Texas, Virginia, Florida, Missouri, Kentucky and North and South Carolina. Beginning January 16, 2004 PSC will be named Aqua America, Inc. and trade under the ticker symbol WTR. PSC's Pennsylvania operating companies will be named Aqua Pennsylvania, Inc.