Press Release

BRYN MAWR, Pa., Dec 26, 2007 (BUSINESS WIRE) -- Aqua America, Inc. announced today that its Indiana subsidiary has purchased Western Hancock Utilities, LLC, a wastewater utility serving an area east of the City of Indianapolis at a price of just over $5 million.

"The Western Hancock wastewater system is strategically located in a growing area along the I-70 corridor that links Indianapolis with Columbus, Ohio," said DeBenedictis. "It currently provides service to approximately 50 business establishments and numerous residential developments representing the equivalent of 2,500 people."

In addition to the base purchase price, Aqua will further invest more than $500,000 in new interceptor sewer lines to enhance future growth for the system. The system, which is just more than 10 years old, has well-constructed facilities and ample treatment capacity to serve additional customers in its service territory.

The Western Hancock acquisition is the third completed by Aqua this month. Last week the company announced the acquisition of the municipal water system that serves the Village of Sun River Terrace just outside of Kankakee, Illinois and the acquisition of the Lakeside Acres water system in Crawford County Pennsylvania.

Aqua America, Inc. is a publicly traded water utility holding company, with operating subsidiaries serving approximately three million residents in Pennsylvania, Ohio, North Carolina, Illinois, Texas, New Jersey, New York, Indiana, Virginia, Florida, Maine, Missouri, and South Carolina. Aqua America is listed on both the New York and Philadelphia Stock Exchanges 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.

SOURCE: Aqua America, Inc.

Aqua America, Inc. Melissa Grimm Director, Corporate & Public Affairs 610-520-6308 magrimm@aquaamerica.com



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