Connecticut Water Service, Inc., Reports Earnings Gain

Double digit increases in revenue and earnings per share in 3rd Quarter

CLINTON, CONNECTICUT, November 7, 2007– Connecticut Water Service, Inc. (NASDAQ GS: CTWS) announced that its earnings for the third quarter of 2007 continued to show strong gains over the same period of 2006. The Company’s core business segment, the Water Activities Segment, experienced more than a 53 percent jump in net income from continuing operations in the period from July 1 to September 30, 2007 compared to the same period in 2006.

Overall, income from continuing operations in all segments totaled $3.9 million, or $0.47 per basic common share, on total revenues of $18.4 million. For the same period in 2006, the Company reported income from continuing operations of $3.5 million, or $0.42 per basic common share, on total revenues of $14.6 million. It should be noted that nearly $1.0 million, or $0.12 per basic common share in the third quarter of 2006, was attributable to a reversal of tax reserves.

The Water Activities Segment, continued to show dramatic year-over-year growth in the third quarter. In 2007, third quarter income from continuing operations in the Water Activities Segment was $3.7 million, or $0.45 per basic common share, which represents a significant increase from the $2.4 million, or $0.29 per basic common share, reported for the same period in 2006. The increase in the Water Activities Segment is due largely to a 22.3% increase in water rates for customers that became effective in January 2007.

The Company also saw growth in income from continuing operations in its Services and Rentals Segment in the third quarter of 2007 when compared to the same period in 2006. In the third quarter, this segment had income of $149,000. In the same period of 2006, the segment reported income of $94,000. The gain in the Service and Rentals Segment was largely attributable to improved margins.

As expected, there was a significant decline in income from the Real Estate Segment. In the third quarter of 2006, the Company recognized $976,000 in net income from the real estate segment due to a reversal of tax reserves related to land donations recorded on federal tax returns between 2002 and 2004. In the third quarter of 2006, the IRS notified the Company that it had completed a review of the land donations and there was no adjustment to the Company’s 2002 – 2004 tax liability. In the third quarter of 2007, net income from the Real Estate Segment was $20,000.

Eric W. Thornburg, Chairman, President and Chief Executive Officer, stated: “I am pleased by the double digit increases in revenues and net income in the third quarter. The settlement of our 2006 rate application earlier this year is allowing us to fully execute our strategy for growing the business. The Water Activities Segment, which represents more than 93% of the Company’s revenues in the third quarter, is our growth engine for the future and we expect our other segments to provide solid contributions to building additional shareholder value.”

Overall, in the first nine months of the year, income from continuing operations was $7.2 million, or $0.87 per basic common share, on total revenues of $48.6 million. In the same period of 2006, the Company reported income of $6.2 million, or $0.75 per basic common share, on total revenues of $40 million.

Connecticut Water Service, Inc. is New England’s largest locally based investor-owned water company. Through its wholly owned public water utility subsidiary, The Connecticut Water Company, it provides drinking water to over 83,000 customers, or 286,000 people in 41 towns throughout Connecticut.

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News media contact:

Daniel J Meaney, APR,

Director of Corporate Communications

Connecticut Water Service, Inc.

93 West Main Street, Clinton, CT 06413-1600

(860) 669 8630 Ext. 3016

This news release may contain certain forward-looking statements regarding the Company’s results of operation and financial position. These forward-looking statements are based on current information and expectations, and are subject to risks and uncertainties, which could cause the Company’s actual results to differ materially from expected results.

Regulated water companies, including The Connecticut Water Company, are subject to various federal and state regulatory agencies concerning water quality and environmental standards.  Generally, the water industry is materially dependent on the adequacy of approved rates to allow for a fair rate of return on the investment in utility plant.  The ability to maintain our operating costs at the lowest possible level, while providing good quality water service, is beneficial to customers and stockholders.  Profitability is also dependent on the timeliness of rate relief to be sought from, and granted by, the DPUC, when necessary, and numerous factors over which we have little or no control, such as the quantity of rainfall and temperature, customer demand and related conservation efforts, financing costs, energy rates, tax rates, and stock market trends which may affect the return earned on pension assets, and compliance with environmental and water quality regulations.  From time to time, the Company may acquire other regulated and/or unregulated water companies.  Profitability on these acquisitions is often dependant on the successful integration of these companies, including the previously announced acquisition of Eastern Connecticut Regional Water Company, Inc. and Birmingham H20 Services Inc.  The profitability of our other revenue sources is subject to the amount of land we have available for sale and/or donation, the demand for the land, the continuation of the current state tax benefits relating to the donation of land for open space purposes, regulatory approval of land dispositions, the demand for telecommunications antenna site leases, and the successful extensions and expansion of our service contract work.  We undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.

Connecticut Water Service, Inc. & Subsidiaries

Condensed Consolidated Statements of Income (unaudited)

Condensed Consolidated Balance Sheets (unaudited)