SAN DIEGO, CA (October 27, 1998) — Western Water Company (Nasdaq:WWTR) today announced the completion of the sale of $10,000,000 of Series D Preferred stock to Sociedad General de Aguas de Barcelona (“Agbar”). This transaction was made pursuant to a Strategic Relationship Agreement announced on October 9, 1998, and subsequent purchases of up to an additional $15,000,000 of Series D Preferred stock may be made by Agbar in the future.

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.