SAN DIEGO--(BUSINESS WIRE)--Feb. 10, 1998--Western Water Co. (NASDAQ:WWTR) announced today that it has received approval from the Colorado Water Court for its plan of augmentation for the Cherry Creek Water Project.

This plan covers the right to produce roughly 7,000 acre-feet/year (2.2 billion gallons/year) from the company's wholly-owned water reserves which exceed 500,000 acre-feet of water, all of which lie within Douglas County. Once this water is sold to users, the company will retain the right to return flows, which could increase the water available for sale to roughly 15,000 acre-feet/year.

This approval allows WWTR to produce water from its deep, non-tributary wells, add the water to the Cherry Creek stream system and produce and distribute water from the 13 surface water wells presently owned by WWTR throughout Douglas County.

Peter L. Jensen, president of WWTR, said, "We filed our initial plan of augmentation in August 1993. Although the approval process took much longer than anticipated, wholesale water prices in Douglas County, have also risen and now exceed $600/acre-foot. We are extremely pleased to be in a position to finally sell this water in Douglas County which lies just south of Denver and has been, for several years, the fastest growing white collar community in the United States."

Western Water is engaged in the development, packaging and sale of water and water rights to municipalities and other end users in the Western United States. The company owns water rights, real estate and farming operations in California and Colorado.

Statements contained in this release which 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 water rights and obtain financing and other factors and considerations detailed in the company's Securities and Exchange Commission filings.