SAN DIEGO, Calif. (October 30, 1998) - Western Water Company (NASDAQ:WWTR) announced today a Net Loss Applicable to Common Stockholders for the second quarter ended September 30, 1998 of $1,919,000 or $0.23 per share. Revenues for the quarter were $132,000.

For the second quarter of the preceding fiscal period ended September 30, 1997, the Company had reported revenues of $1,140,000 and Net Loss Applicable to Common Stockholders of $1,186,000 or $0.14 per share.

Net Loss Applicable to Common Stockholders for the six months ended September 30, 1998 was $2,322,000 or $0.28 per shares, compared to a Net Loss Applicable to Common Stockholders of $315,000 or $0.04 per share for the six months ended September 30, 1997. Revenues for the six months ended September 30, 1998 were $491,000, compared to $1,186,000 for the six months ended September 30, 1997. Net Loss Applicable to Common Stockholders for the six months ended September 30, 1997 included a gain of $2,436,000 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 closed an important water sale agreement with the City of Inglewood during this past quarter. The Agreement calls for the City to purchase 5,950 acre-feet of water per year from the Company for five years. The transaction demonstrates the Company's ability to assist its client in gaining value from local ground water rights. The Company will begin to recognize revenue and profit resulting from this transaction beginning in the third quarter 1998."

Mr. George added, "The Company recently announced that under a Strategic Relationship Agreement, an affiliate of Sociedad General de Aguas de Barcelona, S. A. ("Agbar"), one of the world's leading water distribution companies, purchased $10 million of Series D Convertible Redeemable Preferred shares of Western Water Company in October. The preferred stock is convertible at any time at $8.99 per share. Agbar has also agreed to make up to three subsequent $5 million purchases of Series D Preferred shares to fund capital expenditures of Western Water Company, as opportunities arise, over the next two years."

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.