POINT RICHMOND, Calif.--(BUSINESS WIRE)--June 30, 2000--Western Water Company (Nasdaq:WWTR) Friday announced its results for the fiscal year ended March 31, 2000.

The company reported a net loss applicable to common stockholders for the year ended March 31, 2000 of $4,708,000, or $0.59 per share, compared with a net loss applicable to common stockholders of $6,458,000, or $0.79 per share, for the year ended March 31, 1999. The results for the year ended March 31, 2000 included an extraordinary gain of $3,490,000 (net of tax), or $0.44 per share on the early extinguishment of debt resulting from the company's repurchase of a portion of its 9% Convertible Subordinated Debentures.

Revenues for the fiscal year increased 53% to $2,796,000, compared with $1,823,000 for the preceding fiscal year. The company's revenues for the fiscal year were composed entirely of water revenues. The prior fiscal year included $345,000 from sales of real estate.

Water revenue for the fiscal year increased $1,319,000, or 89%, from the prior year, and included both water sales and income from water lease agreements with various municipalities and agricultural water districts in California.

General and administrative costs were higher, at $7,449,000 compared with $5,805,000 in the preceding year, in part due to higher payroll, severance costs, consulting and engineering costs, and financial advisory fees. Also contributing to higher costs were asset impairment allowances relating to regulatory impediments to two of the company's water transfer transactions which may prevent the realization of some or all of the revenues from those projects.

The company recently relocated its principal executive office to 102 Washington Avenue, Point Richmond, Calif., 94801 from La Jolla, Calif. The new telephone number is 510/234-7400. The relocation and consolidation of administrative functions will enable the company to reduce its administrative expenses going forward.

Commenting on the results, the chairman, president & CEO of Western Water Company, Michael Patrick George, said: "The company's results of operations continue to be negatively impacted by governmental and regulatory obstacles. While we are pleased with the substantial growth in our water revenues, we continue to be hampered by unnecessary bureaucratic hurdles, and the intransigence of certain water agencies. These obstacles illustrate the need for meaningful legislative reform and the establishment of an orderly market for the purchase, sale and transfer of water."

George went on to say, "The company will continue to support meaningful reform as envisioned in the recent CALFED Framework agreement."

During the quarter ending June 30, 2000, Western Water Company was notified by the NASDAQ that it is at risk of being de-listed because its share price has closed below $1.00 for over 30 consecutive trading days. In order to avoid being de-listed, its shares would have to close above $1.00 for at least 10 consecutive trading days by Aug. 30, 2000. The company cannot predict whether de-listing will occur. However, in the event the shares are de-listed, the company intends to apply for listing on the NASDAQ Bulletin Board. 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.