American States Water Company Announces Award Of Privatization Contract For Fort Bragg, NC

San Dimas, CA - American States Water Company announced recently that its American States Utility Services, Inc. ("ASUS") subsidiary has reached an agreement to operate and maintain the water and wastewater systems at Fort Bragg, North Carolina. According to the agreement, the aggregate award of this contract is estimated at more than $575M over a 50-year period and is also subject to periodic price re-determination adjustments and modifications for changes in circumstances.

Old North Utility Services, Inc., a wholly-owned subsidiary of ASUS, will furnish all necessary labor, management, supervision, permits, equipment, supplies, materials, transportation and any other incidentals for the complete operation, maintenance, repair, upgrades and improvements to the water and wastewater utility systems. The agreement is subject to the expiration of a 120-day due diligence period during which time the transition will be undertaken.

Commenting on the awards, Floyd E. Wicks, President and CEO, stated, "The signing of this agreement establishes ASUS as the premier provider of water and wastewater services to the United States military and marks another important continuing milestone in American States Water Company's growth strategy. ASUS currently operates at seven other military bases across the country, and has a number of additional bids outstanding for similar contracts. We look forward to providing other United States military bases with premier water and wastewater services."

Certain matters discussed in this news release with regard to the Company's expectations may be forward-looking statements that involve risks and uncertainties. The assumptions and risk factors that could cause actual results to differ materially, include those described in the Company's Form 10-Q and Form 10-K filed with the Securities and Exchange Commission.

SOURCE: American States Water Company