Press Release

BRYN MAWR, Pa., Dec 31, 2001 (BUSINESS WIRE) -- Philadelphia Suburban Corporation (NYSE:PSC) has announced that its Illinois water subsidiary has purchased a private water and wastewater system bringing to 20 the number of growth ventures the company has completed this year.

Consumers Illinois Water Company (CIWC) purchased the Village Woods water and wastewater system, which serves approximately 475 residents in Crete Township, Will County in a deal valued at more than $450,000. CIWC will interconnect the Village Woods water system with its nearby Dixie Dells water system via a main extension.

The interconnection will increase reliability for both CIWC's Village Woods and Dixie Dells customers. In addition to the interconnection, CIWC plans to invest approximately $65,000 in capital over the next year to improve water and wastewater service in Village Woods.

CIWC President Terry Rakocy said, "We are very pleased to have Village Woods customers among those we serve. Their proximity to our Dixie Dells system makes them a good fit as they can be easily integrated into our system."

PSC Chairman Nicholas DeBenedictis said that Village Woods secures PSC's four percent growth goal for the year. "We've completed 20 growth ventures this year, three more than we did last year, setting a new record," said DeBenedictis.

Village Woods is the fourth growth venture completed by CIWC. Following is a list of the other growth ventures completed by PSC's operating subsidiaries.

1.  January 2001 - PSC's Consumers Pennsylvania subsidiary received
    approval from the Pennsylvania Public Utility Commission to
    provide service to more than 1,200 residents in an area of
    southern Mahoning Township, Lawrence County, Pennsylvania.

2.  January 2001 - PSC's North Carolina subsidiary merged with
    Hydraulics, Ltd. of Greensboro, a public water utility that serves
    approximately 16,000 residents in 22 counties surrounding the
    towns of Greensboro, Hickory, Raleigh and Gastonia.

3.  January 2001 - PSC's Consumers New Jersey subsidiary entered into
    a one-year professional services contract to operate and maintain
    the wastewater collection system and pumping station serving the
    first phase of the Greenwich Chase development that currently
    serves approximately 450 residents.

4.  January 2001 - PSC's Consumers Maine subsidiary entered into a
    one-year management contract with the Port Clyde Water District.

5.  January 2001 - Hydraulics, Ltd. Purchased the Creekside Water
    System, in Gastonia, North Carolina, serving approximately 470
    residents

6.  February 2001 - PSC's Consumers Illinois subsidiary purchased the
    assets of the Walnut Hill Well Association, a small groundwater
    system serving 40 residents in Vermilion County.

7.  March 2001 - PSW purchased the water system assets of the
    Springton Court homeowner community, which serves approximately
    100 residents in West Brandywine Township, Chester County.

8.  April 2001 - PSW acquired the water system assets of the Dresher
    Woods Condominium community located in Upper Dublin Township,
    Montgomery County, and serves approximately 400 residents.

9.  April 2001 - PSW's wastewater subsidiary--Little Washington
    Wastewater Company (LWW), now doing business as Suburban
    Wastewater Company--purchased the Media Borough wastewater system
    in Delaware County, Pennsylvania which serves approximately 15,000
    residents in Media Borough, and Upper Providence and Middletown
    Townships

10. May 2001 -Consumers Illinois Water Company (CIWC) purchased the
    Aroma Park municipal water system, which serves approximately
    2,100 residents in Kankakee County (near Chicago)

11. June 2001 - PSW purchased the assets of the Geigertown Water
    Company that serves approximately 250 residents in Robeson and
    Union Townships, Berks County

12. July 2001 - PSW purchased the Icedale-Deer Run water system that
    serves 300 residents in Berks County, PA.

13. July 2001 - Consumers Illinois Water Company acquired the Glendale
    water system that serves 300 residents in Danville, Illinois.

14. August 2001 - PSW received permission from the Pennsylvania Public
    Utility Commission to serve additional territory in Pocopson
    Township, Chester County where it will provide water to a
    retirement home complex, Kendal at Coniston.

15. September 2001-Consumers Pennsylvania Water Company -Roaring Creek
    Division entered into an operation and management contract with
    the Schickshinny Lake Property Owner's Association, which serves
    350 residents in Union Township, Luzerne County. The contract
    includes an "option-to-buy" clause, which PSC intends to exercise.

16. September 2001-Consumers Pennsylvania Water Company -Roaring Creek
    Division entered into an operations and management contract with
    the Wilson Hills Community Association, which serves 250 residents
    in Palmyra Township, Pike County. The contract includes an
    "option-to-buy" clause, which PSC intends to exercise.

17. November 2001 - PSW purchased the water system assets of Chalfont
    Borough in Bucks County, Pennsylvania which serves approximately
    8,000 residents in Chalfont Borough as well as New Britain Borough
    and New Britain Township.

18. November 2001 - PSW completed a merger with the Paupack Water
    Company, which serves approximately 2,150 residents in Palmyra and
    Blooming Grove townships, in Pike County.

19. November 2001 - Consumers Ohio Water Company (Consumers) entered
    into an operations agreement with the Muskingum Water Conservancy
    District (MWCD) to operate the 350-resident Sites Lake Cottage
    area in Richland County, Ohio.

PSC is the holding company for regulated public utilities that provide water and wastewater services to approximately two million residents in Pennsylvania, Ohio, Illinois, New Jersey, Maine, and North Carolina. PSC's common shares are traded on both the New York and Philadelphia Stock Exchanges under the ticker symbol "PSC".

The company has been committed to the preservation and improvement of the environment throughout its history, which spans more than 100 years.

Editors Note: This release contains certain forward-looking statements involving risks, uncertainties and other factors that may cause the actual results to be materially different from any future results expressed or implied by such forward-looking statements.

These factors include, among others, the following: general economic business conditions; the success of certain cost containment initiatives, changes in project schedules, project contingencies and variations in water purchases; changes in regulations or regulatory treatment; availability and cost of capital; and the success of growth initiatives.

CONTACT:          Philadelphia Suburban Corporation
                  Donna Alston, 610/645-1095
                  alstond@suburbanwater.com