Press Release

BRYN MAWR, Pa., Jan 20, 2009 (BUSINESS WIRE) -- Aqua America, Inc. (Aqua) announced today that its Pennsylvania subsidiary, Aqua Pennsylvania, Inc., has completed the acquisition of the Gouldsboro Water Company, which serves approximately 425 people in Lehigh Township, Wayne County, for $65,000.

The purchase is the company's second acquisition in Wayne County in the past six months. Aqua Pennsylvania purchased the Honesdale Water Company, which serves approximately 6,000 people within portions of Honesdale Borough and Texas Township, Wayne County, in September 2008.

"The Gouldsboro acquisition expands our service area in Wayne County and allows us to increase our economies of scale in that area by filling in our footprint in Northeast Pennsylvania," said Aqua America Chairman and CEO Nicholas DeBenedictis.

Among the capital investments Aqua Pennsylvania has planned for Gouldsboro is the installation of new radio frequency (RF) meters for customers, who are now billed flat rates per fixture. Additionally, the company has plans to make water supply, treatment, storage and distribution system improvements.

In 2008, Aqua America subsidiaries completed a total of nine acquisitions in Pennsylvania, Texas, Indiana and Florida, serving approximately 18,000 additional people.

• Fountain Lake Sewer Corporation in Florida, April
• Sharpsville in Pennsylvania, August
• South Haven Sewer Works in Indiana, August
• Honesdale Consolidated Water Company in Pennsylvania, September
• Saddle Club Water Company in Texas, October
• New Daleville Wastewater Company in Pennsylvania, October
• Mountain Crest Water Company in Texas, December
• Cardinal Valley Water Company in Texas, December
• Emlenton Water Company in Pennsylvania, December

Additionally, its subsidiary companies have completed more than 20 growth ventures that involve agreements with developers in Pennsylvania, Texas, Ohio and North Carolina.

Aqua America is a publicly traded water and wastewater utility holding company with operating subsidiaries serving approximately threemillion people in Pennsylvania, Ohio, North Carolina, Illinois, Texas, New Jersey, New York, Florida, Indiana, Virginia, Maine, Missouri and South Carolina. Aqua America is listed on the New York Stock Exchange under the ticker symbol WTR.

This release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 that address, among other things, the projected investment in the acquired system, the effect of the acquisition of the described business, and possible benefits from the 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: the risk that the acquired company's business will not be successfully integrated; the risk that the proposed improvements will not be made as projected or have the indicated benefits; the costs related to the transaction; the risk that anticipated benefits will not be obtained or will not be obtained within the time anticipated; and other key factors that we have indicated could adversely affect our business and financial performance contained in our past and future filings and reports, including those filed with the Securities and Exchange Commission. Aqua America is not under any obligation--and expressly disclaims any such obligation--to update or alter its forward-looking statements whether as a result of new information, future events, or otherwise.

WTRF

SOURCE: Aqua America, Inc.

Aqua America, Inc.
Donna Alston
Director, Communications
610.645.1095
dpalston@aquaamerica.com
or
Brian Dingerdissen
Director, Investor Relations
610.645.1191
bjdingerdissen@aquaamerica.com

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