SAN DIEGO--(BUSINESS WIRE)--Nov. 15, 1999--Western Water Co. (Nasdaq:WWTR) announced today its results for the second quarter ended Sept. 30, 1999.

The company reported net income applicable to common stockholders for the quarter ended Sept. 30, 1999 of $1,165,000, or $0.15 per share, compared to a net loss applicable to common stockholders of $1,919,000, or $0.23 per share, for the quarter ended Sept. 30, 1998. Revenues for the quarter were $376,000, compared to $132,000 for the preceding fiscal year.

Net loss applicable to common stockholders for the six months ended Sept. 30, 1999 of $604,000, or $0.08 per share, compared to a net loss applicable to common stockholders of $2,322,000, or $0.28 per share, for the six months ended Sept. 30, 1998. Revenues for the six months ended Sept. 30, 1999 were $849,000, compared to $491,000 for the preceding fiscal year.

The quarter ended Sept. 30, 1999 included an extraordinary gain of $3.5 million resulting from the repurchase of $5 million of the company’s outstanding debentures. In addition, during the quarter ended Sept. 30, 1999, the company paid $188,000 of Series D preferred stock dividends, as compared to none having been paid in the quarter ended Sept. 30, 1998.

The results for the quarter and six months ended Sept. 30, 1999 reflected continued increase in revenues and gross margin from the company’s water business. As its business shifts to the marketing of water, water sales are expected to become the major source of revenue to the company, and the trend through the first six months ended Sept. 30, 1999 was an indication of this change. Water revenues for the quarter and six months ended Sept. 30, 1999 were $376,000 and $849,000, respectively, as compared to $65,000 and $145,000 for the quarter and six months ended Sept. 30, 1998, respectively. There were no real estate sales in the quarter and six months ended Sept. 30, 1999, compared to $68,000 and $346,000 for the quarter and six months ended Sept. 30, 1998.

During the most recent quarter, Michael Patrick George, president and chief executive officer of Western Water Co., was elected to the additional post of Chairman of the Board of Directors. In commenting on the decision of the Board to elect him Chairman, George said: "I appreciate the confidence expressed by our Directors, particularly in light of the company’s current challenges. Although the water market in western United States continues to develop, that development has been resisted and slowed by entrenched governmental water agencies. I relish the opportunity to lead Western Water Company as we create new ways to serve our customers and generate sustainable value for our shareholders."

Western Water is engaged in the identification, development, transportation, sale and lease of water rights and water to municipalities and other end users in the western United States and owns water rights and real estate 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.