SAN DIEGO, Calif. (July 24, 1998) – Western Water Company (NASDAQ:WWTR) announced today a Net Loss Applicable to Common Stockholders for the first quarter ended June 30, 1998 of $402,000 or $0.05 per share. Revenues for the quarter were $359,000.

In the first quarter of the preceding fiscal year, ended June 30, 1997, the Company had reported revenues of $46,000 and Net Income Applicable to Common Stockholders of $871,000 or $0.11 per share. The net income for the period included a gain of $2,426,000 from the sale of the Company’s interest in the Nevada Land and Resources Company.

Michael Patrick George, President and Chief Executive Officer, stated that "The Company continues to aggressively pursue a number of opportunities to market water to municipalities in Southern California, while exploring other opportunities throughout the Western United States. We are hopeful that in the coming year we will begin to record more revenues from the sale of water. In the meantime, we continue to invest significant amounts to acquire new water rights, and in the legal and engineering costs of developing and marketing our water rights."

Western Water Company 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.