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Monday, December 14, 2009

Water Stocks News - American Water (NYSE:AWK) Acquires Environmental Management Corporation

Acquisition Gives Company Stronger Presence in Industrial Contract Operations Market

VOORHEES, N.J.----American Water (NYSE:AWK), the largest investor-owned U.S. water and wastewater utility company, announced today that its subsidiary, American Water Enterprises, has acquired Environmental Management Corporation (EMC) from The Linde Group. EMC, a Missouri based company, provides integrated solutions for water, wastewater, and other related assets. EMC has approximately 55 contract operations with industrial and municipal customers in the United States and Canada.

"American Water is very pleased to add a company of the caliber of EMC to our business,” said Don Correll, president and CEO of American Water, “EMC has solid experience in the development of sustainable and innovative solutions for the management of water and wastewater needs, as well as a portfolio of contracts that is very complementary to American Water Enterprises’ existing business. This acquisition will also bring a new element to AWE’s business with the addition of EMC’s large base of industrial customers and it will contribute to the earnings growth goals of American Water.”

EMC was formed in 1980 as a contract operations firm with a focus on municipal wastewater and water operations. For over twenty years, EMC experienced steady growth and, by 2001, became one of the largest privately held contract operators in the United States. From 2002 to 2008, EMC transformed itself from a traditional operator to an integrated solutions provider, which allowed it to diversify its customer base to include the private sector in a variety of industries. With almost 300 employees and revenues of approximately $50 million in 2008, EMC provides its contract services for up to 20-year terms.

“Combining the expertise of EMC with AWE’s knowledge is very exciting,” said Mark Strauss, president of American Water Enterprises. “We look forward to leveraging the capabilities and strengths of both companies as we continue to deliver reliable service to our current customers and provide further water solutions to new customers.”

American Water Enterprises represents the non-regulated side of American Water’s business, which includes:

its Contract Operations group, which enters into public/private partnerships, including operation and maintenance and design/build/operate contracts for the provision of services to water and wastewater facilities for municipalities, the United States military and other customers; its Applied Water Management Group, which works with customers to design, build, and operate small water and wastewater systems; its Homeowner Services Group, which provides services to domestic homeowners and municipalities to protect against the cost of repairing broken or leaking pipes inside and outside their homes; and Terratec Environmental, Ltd., which primarily provides wastewater, residuals, transport, disposal and management services to municipal and industrial customers in Ontario, Canada

While American Water does not believe the acquisition price is material to its business, the purchase price will not be disclosed pursuant to the terms of the acquisition agreement. EMC will operate as a separate business unit of AWE for the remainder of the year and into early next year as a team made up of representatives of both companies work to ensure a smooth transition for employees and customers.

“EMC and AWE share the same strong commitment to customers and employees,” added Strauss. “We will work together to build upon that commitment and capitalize on the talents of two great companies.”

Founded in 1886, American Water is the largest investor-owned U.S. water and wastewater utility company. Headquartered in Voorhees, N.J., the company employs more than 7,000 dedicated professionals who provide drinking water, wastewater and other related services to approximately 15 million people in 32 states and Ontario, Canada. More information can be found by visiting

Cautionary Statement Concerning Forward-Looking Statements

This press release contains certain forward-looking statements about the Company, including statements that involve risks and uncertainties concerning the Company’s acquisition of EMC, estimates of future results of operations and general business outlook. When used in this press release, the words “anticipates,” “estimates,” “may,” “can,” “will,” “believes,” “expects,” “projects,” “intends,” “likely,” similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements. Any such statement may be influenced by a variety of factors, many of which are beyond the Company’s control, that could cause actual outcomes and results to be materially different from those projected, described, expressed or implied in this press release due to a number of risks and uncertainties. Potential risks and uncertainties include, among others, the possibility that anticipated synergies of the combined companies may not be achieved after closing, the combined operations may not be successfully integrated in a timely manner, if at all, general economic conditions in regions in which either companies do business, and the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company.

For further information regarding risks and uncertainties associated with American Water’s business, please refer to American Water’s annual, quarterly and periodic SEC filings. The Company undertakes no duty to update any forward-looking statement.

Contact:American WaterMaureen Duffy, 856-309-4546

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