SAN DIEGO, Calif. (June 18, 1998)-- Zach A. McReynolds has been named Vice President and Director of Marketing and Customer Solutions of Western Water Company (NASDAQ: WWTR), it was announced today by Michael Patrick George, President and Chief Executive Officer. Mr. McReynolds will manage the company's marketing program, with a focus on providing creative water resource solutions for clients.

Mr. McReynolds, who will report directly to Mr. George, joins Western Water from his own consulting firm, ZAMIV Corporation of Ross, Calif. During the last four years, Mr. McReynolds secured and executed consulting contracts to develop financing strategies for over $10 billion in water-related capital projects. In addition, through ZAMIV, Mr. McReynolds served as finance and economics officer for the CalFed Bay-Delta Program, the joint federal and state process for improving the long-term ecology, transfer efficiency and reliability of the Delta, through which two-thirds of California's water passes prior to delivery to agricultural and urban users in California's Central Valley and Southern California. In that capacity, Mr. McReynolds helped develop practical solutions to water resource problems faced by most of California's water users and, in the process, he gained deep understanding of the conflicting demands of urban, agricultural and environmental interests in the West.

"Zach's knowledge of the expanding water resources market will be invaluable to us as we seek to address the needs of our customers," said Peter Jensen, Chairman of the Board of Western Water Company.

A native of New Mexico, Mr. McReynolds is a water and wastewater specialist. Prior to founding ZAMIV in 1995, he was vice president of Morgan Stanley & Co. based in San Francisco. In his 20 years of professional experience, he has executed project financings for a variety of water, wastewater, and power agencies in the West.

"I look forward to working with Western Water to bring the promise of the developing water market to meet the unique needs of our customers. Based on my experience in the CalFed process, I know that water marketing is a critical part of meeting the needs of the growing West while preserving our natural environment," said Mr. McReynolds.

Western Water Co. is a leading water resource company in the wholesale, non-regulated water market in the Western United States. Its principal activities include the acquisition, development and marketing of water supplies in key market areas throughout the semi-arid southwestern part of the United States.

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.