Connecticut Water Service, Inc. Reports Q1 Earnings Gain

11% increase in EPS due largely to Eastern acquisition

   Clinton, Connecticut, May 12, 2008 – Connecticut Water Service, Inc. (NASDAQ GS: CTWS) announced that net income in the first three months of 2008 totaled $1.7 million, or $0.20 per basic common share. During the same period in 2007, the Company reported net income of nearly $1.5 million, or $0.18 per basic common share.

   The Company’s core business segment, the Water Activities segment, showed year-over-year net income growth of more than 17% for the first quarter. Through March 31, 2008, net income in this segment was $1.5 million, or $0.18 per basic common share. In the first quarter of 2007, net income from the segment totaled $1.3 million, or $0.16 per basic common share. The earnings gain in the Water Activities segment was due largely to a $400,000 increase in revenues as a result of the acquisition of the Eastern Operations of Birmingham Utilities on January 16, 2008. In addition, the Company was able to reduce some of its key operating costs during the quarter.

   The Company also saw continued growth in net income from its Services and Rentals segment in 2008. For the first quarter of 2008, net income from the segment totaled $190,000, or $0.02 per basic common share. In the first quarter of 2007, the segment produced net income of $142,000, or slightly more than a penny-and-a-half per basic common share. The earnings gain in the Services and Rentals segment is largely due to the service contracts acquired from Birmingham Utilities' H2O Services, Inc. in January 2008.

   As expected, there was no income from the Real Estate Segment in the first quarter of 2008. In the first quarter of 2007, the segment produced net income of $41,000, or less than a penny per basic common share.

   Eric W. Thornburg, Chairman, President and Chief Executive Officer, stated: “Earnings in Q1 reaffirm our strategy of focusing on the Water Activities segment. Growth in the segment, largely due to the completion of the acquisition of the Eastern Operations of Birmingham Utilities and managing our O&M expenses, delivered double-digit earnings per share growth. We look forward to continued growth in Q2 as we begin to recover $15.5 million in infrastructure investment that was made in 2007 to better serve our customers.” New rates reflecting the $15.5 million in 2007 infrastructure investment and financing costs related to the 2007 – 2008 rate phase-in went into effect on April 1, 2008.

   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, the Company provides drinking water to over 85,000 customers, or nearly 300,000 people, in 54 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, compliance with environmental and water quality regulations and the outcome of litigation matters, including the Unionville division well field dispute.  From time to time, the Company may acquire other regulated and/or unregulated water companies.  Profitability on these acquisitions is often dependent on the successful integration of these companies, including the January 2008 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)