Western Water Company Announces Results For The Year Ended
March 31, 2003

POINT RICHMOND, Calif. (July 1, 2003) - Western Water Company (OTCBB: WWTR)

announced today its results for the fiscal year ended March 31, 2003. Yesterday, the Company also filed with the SEC its annual report for FY 2003 on Form 10-K.

The Company reported a net loss applicable to common stockholders for the year ended March 31, 2003 of $(2,580,000), or $(0.32) per diluted share, compared to a net loss applicable to common stockholders for the year ended March 31, 2002 of $(4,249,000), or $(0.53) per diluted share. Water sales, gross profit, general and administrative expenses, and the Company’s operating loss were essentially flat on a year over year basis.

Although operating results for FY 2003 were essentially the same as the prior year, the results for FY 2003 were positively impacted by two factors. First, the Company realized a gain of $975,000 in the third fiscal quarter resulting from the sale of its remaining groundwater pumping rights in the Mojave Basin in San Bernardino County , California . Second, in the fourth fiscal quarter, the Company realized an extraordinary gain on extinguishment of debt of $219,000 resulting from the Company’s voluntary repurchase of $500,000 of its Convertible Redeemable Subordinated Debentures at a substantial discount from their face value.

The Company’s independent auditor, KPMG, expressed its unqualified opinion with respect to the Company’s FY 2003 consolidated financial statements, although KPMG’s opinion on the Company’s consolidated financial statements included an explanatory paragraph expressing doubt about the Company’s ability to continue as a going concern.

Commenting on the results, the Chairman, President & CEO of the Company, Michael Patrick George, said: “Western Water Company continued its attempt to remedy restrictions and inefficiencies affecting the California water transfer process. However, it is no longer clear that the Company has the financial reserves necessary over the longer term to protect and develop its California assets in the face of continuing water transfer obstacles and the slow pace of regulatory reform. In Colorado , by contrast, the Cherry Creek Project achieved significant milestones in the course of the last fiscal year, and it continues to hold promise. Nonetheless, in light of the uncertainties the Company faces, our independent auditors have expressed doubt about the Company’s ability to continue as a going concern. The year ahead will be every bit as challenging as the one just past.”

Western Water Company is engaged in the identification, development, transportation, sale and lease of water rights and water to municipalities and other end users in the western United States and owns water rights and real estate in California and Colorado.

Statements contained in this release that are not historical facts are forward looking statements that involve risks and uncertainties that could cause actual results or future events to differ from those contained herein.   Factors that could cause actual results or events to differ include the Company’s ability to purchase and sell water rights and obtain financing and other factors and considerations detailed in the Company’s Securities and Exchange Commission filings.