Aqua America Increases Customer Base by More Than 11 Percent in 2004; Growth-Through-Acquisition Strategy Continues Expansion Momentum

February 11, 2005
Aqua America Increases Customer Base by More Than 11 Percent in 2004; Growth-Through-Acquisition Strategy Continues Expansion Momentum BRYN MAWR, Pa.--(BUSINESS WIRE)--Feb. 11, 2005--Aqua America, Inc. (NYSE:WTR) announced today its customer growth in 2004 exceeded 11 percent representing more than 85,000 new customer accounts (approximately 250,000 residents). The growth was largely due to the company's commitment to the growth-through-acquisition strategy that it began more than 10 years ago.

The company's 29 acquisitions added approximately 70,000 customer accounts to Aqua America's customer base and organic growth accounted for approximately 15,000 customer accounts.

"We are pleased with the strong growth in 2004. The acquisitions of Heater and the former Florida water systems, which added more than 65,000 customer accounts, were clearly the height of last year's acquisition efforts," said Aqua America's Vice President of Corporate Development Mark J. Kropilak. "And while these large platform-building acquisitions are important, the company's numerous smaller 'tuck-in' acquisitions and growth ventures in and around its existing service territory continue to be an important part of our growth efforts."

"This has been another exciting year for the company," agreed Aqua America Chairman Nick DeBenedictis. "By combining smaller system acquisitions with two large acquisitions, we've increased our future earnings potential, as well as our potential for customer growth, especially in our Southern states."

In addition to the Heater and Florida Water acquisitions, Aqua America completed the following growth ventures in 2004:


    1.  February 2004 - Aqua Pennsylvania, Inc. completed the purchase
        of the Canal Acres water system located in Lackawaxen
        Township, Pike County. Nine of 34 homes are built.
    2.  March 2004 - Aqua Pennsylvania completed the purchase of water
        system assets from Tafton Water Company, Inc. This system
        furnishes water service to 250 residents in the "Wilson Hill"
        community in Palmyra Township, Pike County.
    3.  March 2004 - Aqua North Carolina, Inc. purchased the water and
        wastewater assets of ABC Utilities, which serve approximately
        900 residents south of Wilmington in New Hanover County.
    4.  March 2004 - Aqua North Carolina purchased the water assets of
        the Glencroft Subdivision that currently serves 150 residents
        near Newton in Catawba County.
    5.  March 2004 - Aqua Pennsylvania acquired the system assets of
        Applewood Water Company, Inc., which serves approximately 100
        residents in Dallas Township, Luzerne County.
    6.  March 2004 - Aqua Pennsylvania acquired the system assets of
        Meribah Water Company, which serves approximately 150
        residents in Delaware Township, Juniata County.
    7.  March 2004 - Aqua Pennsylvania purchased Marienville Water
        Supply Company, Inc., which serves 900 residents within the
        Village of Marienville in Jenks Township, Forest County.
    8.  April 2004 - Aqua North Carolina purchased the water assets of
        Neuse River Village Utilities, which serves approximately 400
        residents in Wake County east of Raleigh.
    9.  April 2004 - Aqua Missouri, Inc. purchased the Lakewood Manor,
        Ltd., water system, which serves approximately 100 residents
        in the Shell Knob area of Barry County.
    10. April 2004 - Aqua Pennsylvania purchased the water system
        assets of Barrett Water Company, Inc., which serves 120
        residents in Exeter Township, Luzerne County.
    11. April 2004 - Aqua Pennsylvania purchased the water system
        assets of Hex Acres Water Company, which serves 300 residents
        in Exeter Township, Luzerne County.
    12. April 2004 - Aqua Pennsylvania purchased the water system
        assets of the Tambur Waterworks, which serves 105 residents in
        Exeter Township, Luzerne County.
    13. June 2004 - Aqua Pennsylvania purchased the water assets of
        Eagle Rock Community Association, Inc., which serves
        approximately 1,400 residents in Black Creek and Hazle
        townships in Luzerne County and in East Union and North Union
        townships in Schuylkill County.
    14. June 2004 - Aqua Pennsylvania purchased the wastewater assets
        of Eagle Rock Community Association, Inc., which serves
        approximately 1,400 residents in Black Creek and Hazle
        townships in Luzerne County and in East Union and North Union
        townships in Schuylkill County.
    15. June 2004 - Aqua Pennsylvania purchased the water system
        assets of Eagle Rock Utility Corporation/Oneida which serves
        approximately 360 residents in East Union Township, Schuylkill
        County.
    16. July 2004 - Aqua North Carolina purchased the wastewater
        assets of Willow Creek Holdings, which serves Willow Creek,
        Cascade Ridge and the Bluffs at Willow Creek Subdivisions.
        This system also serves Westchester Academy and High Point
        Country Club, and is located in Davidson County just west of
        High Point.
    17. July 2004 - Aqua Pennsylvania purchased the assets of
        Fieldcrest Water Association, Inc. which serves 120 residents
        in Jackson Township, Luzerne County and will be operated out
        of the company's Whitehaven office.
    18. August 2004 - Aqua Pennsylvania purchased the water assets of
        Thornhurst Country Club Estates Property Owners Association,
        which serves approximately 900 residents in Lehigh Township,
        Lackawanna County.
    19. August 2004 - Aqua Pennsylvania purchased the wastewater
        assets of Thornhurst Country Club Estates Property Owners
        Association, which serves approximately 900 residents in
        Lehigh Township, Lackawanna County.
    20. August 2004 - Aqua Pennsylvania purchased the water system
        assets of Christian Springs Water Company, Inc. that serves
        approximately 160 residents in Moore Township, Northampton
        County.
    21. September 2004 - Aqua North Carolina completed the purchase of
        the water system assets of Craven Water Works in Rowan County,
        which serves 145 residents.
    22. September 2004 - Aqua North Carolina purchased the water
        systems assets of Crabtree Water Systems that serve nearly 200
        residents in Lincoln and Catawba counties.
    23. September 2004 - Aqua Pennsylvania purchased the water system
        assets of the Links of Gettysburg, a planned golf community
        that will ultimately serve approximately 1,200 residents in
        Mount Joy Township, Adams County.
    24. October 2004 - Aqua Pennsylvania purchased the water systems
        assets of Pennsview Water Company, which serves approximately
        360 residents in Penn Township, Snyder County.
    25. November 2004 - Aqua Illinois purchased the brand-new water
        system at the Hawthorn Woods Country Club, a residential golf
        community that will serve approximately 1,800 residents in the
        Village of Hawthorn Woods, Lake County.
    26. November 2004 - Aqua Illinois purchased the brand-new
        wastewater system at the Hawthorn Woods Country Club, a
        residential golf community that will serve approximately 1,800
        residents in the Village of Hawthorn Woods, Lake County (near
        Chicago).
    27. December 2004 - Little Washington Wastewater Company (Aqua
        Pennsylvania's wastewater subsidiary) purchased the wastewater
        system assets of the Links of Gettysburg that will serve
        approximately 1,200 residents in Mount Joy Township, Adams
        County, Pennsylvania.

Aqua America, Inc. is the largest U.S.-based publicly-traded water utility, serving more than 2.5 million residents in Pennsylvania, Ohio, North Carolina, Illinois, Texas, Florida, New Jersey, Indiana, Virginia, Maine, Missouri, New York, and South Carolina. Aqua America is listed on both the New York and Philadelphia Stock Exchanges under the ticker symbol WTR.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, the Company's growth-through-acquisition strategy, the earnings potential from acquisitions and the potential for additional customer growth from acquired operations. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including: general economic business conditions, unfavorable weather conditions, the success of certain cost containment initiatives, changes in regulations or regulatory treatment, availability and the cost of capital, the success of growth initiatives, and other factors discussed in our filings with the Securities and Exchange Commissions.



CONTACT:
Aqua America, Inc.
Cheryl Hansen, 610-645-1084
clhansen@aquaamerica.com
or
Joanna Oszeyczik, 610-645-4213
jaoszeyczik@aquaamerica.com



SOURCE: Aqua America, Inc.