POINT RICHMOND, Calif.--(BUSINESS WIRE)--Aug. 23, 2001--Western Water Company (OTCBB:WWTR) announced today its results for the first quarter ended June 30, 2001.

The Company reported a net loss applicable to common stockholders for the quarter ended June 30, 2001 of $1,090,000, or $0.14 per common share. That result compared to a net loss applicable to common stockholders of $1,328,000, or $0.17 per common share, including a change in accounting principle, for the quarter ended June 30, 2000. The cumulative effect of the change in accounting principle was $237,000 or $0.03 per common share. Revenues for the quarter, entirely from water sales, were $452,000, compared to $451,000 for the first quarter of the preceding fiscal year.

Commenting on the results, Michael Patrick George, Chairman, President and CEO of Western Water Company, said: "During the Company's fiscal first quarter, the Western United States began to feel the effects of reduced precipitation, after six straight years of above average rainfall. As a result, many of our partners and clients (including environmental users) are investigating market-based opportunities to balance supply and demand. In this climate -- both hydrological and political -- the Company is attempting to demonstrate the value of water markets to a wide range of water users. We believe that the positive financial impacts of our efforts will show up, both for our stockholders and our customers, in future periods. In the meantime, we have stabilized our operating costs at a substantially lower level to sustain the long-term effort to gain regulatory approval for efficient water transfers."

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.