POINT RICHMOND, Calif.--(BUSINESS WIRE)--Nov. 14, 2001--Western Water Company (OTCBB:WWTR) announced today its results for the second fiscal quarter ended Sept. 30, 2001.

The Company reported a net loss applicable to common stockholders for the quarter ended Sept. 30, 2001 of $1,172,000, or $0.15 per common share. That result compared to a net loss applicable to common stockholders of $965,000, or $0.12 per common share, for the quarter ended Sept. 30, 2000. Revenues for the quarter, entirely from water sales, were $329,000, compared to $525,000 for the comparable quarter of the preceding fiscal year. Revenue was lower during the recent quarter because the Company has sold certain assets that had generated revenue in the year-ago quarter. The revenues during the comparable quarter of the preceding fiscal year have also been restated (increased) to reflect the adoption of Staff Accounting Bulletin No. 101.

Commenting on the results, Michael Patrick George, chairman, president and CEO of Western Water Company, said: "Our Company continues to operate at a loss, reflecting both the cost of protecting and developing our strategic assets and the delay in earning recurring water sales revenue. Notwithstanding the loss, however, the Company is making progress in moving its key assets toward revenue production and in pursuing revenue from water marketing."

Despite the continuing losses from operations, the Company has improved its cash position from the year ago period through the disposition of non-strategic assets and has increased stockholders' equity through balance sheet restructuring completed earlier.

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.