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American Water Awarded Contract For Cape May County MUA Beneficial Water Reuse Construction Project

October 13, 2008

VOORHEES, N.J.--(BUSINESS WIRE)--American Water (NYSE: AWK), the largest investor-owned U.S. water and wastewater utility company, announced today that its subsidiary, Applied Water Management, has been awarded a contract for the construction of a beneficial water reuse project at the Cape May County Municipal Utilities Authority Seven Mile Beach/Middle Region Wastewater Treatment Facility. The contract is estimated at approximately $1.7 million for a one year term.

Under the contract, Applied Water Management will construct the necessary infrastructure to divert approximately 300,000 gallons per day (gpd) of secondary effluent from the existing wastewater treatment facility to a new tertiary treatment train, and pump the high quality reclaimed water into a distribution pipeline to be reused for irrigation at Cape May County's Haven Complex, the County Park/Zoo, the Atlantic Cape Community College, and Middle Township's Davies Recreational Complex. The reclaimed and beneficially reused water will save approximately 50 million gallons per year of groundwater from being extracted from various aquifers underlying Cape May County.

"We are extremely pleased to be awarded this contract and are committed to delivering excellent service that Cape May County MUA can depend upon," said Tim Davies, CEO of Applied Water Management. "This contract furthers American Water's commitment to sustainable water management through reuse and environmental stewardship."

The Applied Water Management Group of American Water is headquartered in Hillsborough, N.J., and provides customized water and wastewater management solutions to real estate developers, industrial clients, and small to midsized communities nationwide. The company is a wholly owned subsidiary of American Water. Founded in 1886, American Water is the largest investor-owned U.S. water and wastewater utility company. With headquarters 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 www.amwater.com.

Copyright 2008 Business Wire All Rights Reserved.

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