Press Release

BRYN MAWR, Pa., Jun 01, 2009 (BUSINESS WIRE) -- Aqua America, Inc. (Aqua) announced today that its Pennsylvania subsidiary, Aqua Pennsylvania, Inc., has completed the acquisition of the water system assets of the Kratzerville Municipal Authority, which serves approximately 400 residents in portions of Jackson and Penn Townships in Snyder County, Pennsylvania for $300,000.

Kratzerville, the sixth acquisition for Aqua America companies this year, is located about five miles from the company's other Snyder County systems of Rolling Green-Monroe Manor and Pennsview. The acquisition is further completing its footprint in central Pennsylvania and adding to its operating efficiencies.

"We are very pleased to have acquired the assets of another municipal water system," said Aqua America Chairman and CEO Nicholas DeBenedictis. "Municipal systems make up 85 percent of the water utility market. We are starting to see more municipal systems consider privatization as they face increasing capital needs and more stringent environmental regulations. Kratzerville is just one example of how the sale of a municipal system to a private utility like ours can benefit both parties."

Aqua Pennsylvania's plans for capital investment include the immediate retrofitting of properties with state-of-the-art radio frequency water meters and future improvements to the distribution system.

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, 610-645-1095
Director, Communications
dpalston@aquaamerica.com
or
Brian Dingerdissen, 610-645-1191
Director, Investor Relations
bjdingerdissen@aquaamerica.com

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