Connecticut Water Acquires Hilldale Park Water System

Two more planned acquisitions announced

              CLINTON, CONNECTICUT – November 29, 2007 – Connecticut Water (NASDAQ GS: CTWS) has announced that it has completed the acquisition of the Hilldale Park water system in Plainfield, Connecticut. The Hilldale Park Homeowner’s Association has transferred the assets of the water system and its customers at no cost to Connecticut Water. The Hilldale Park water system will be tied into one of Connecticut Water’s existing water distribution systems. This transaction did not require the approval of the Connecticut Department of Public Utility Control (DPUC). The Hilldale Park water system serves a population of about 220.

              Similar terms were reached with the Hillsdale Water Co-op in South Windsor. Connecticut Water will acquire the water system at no cost and tie it into one of its existing water distribution systems. The Hillsdale Water Co-op water system serves a population of about 45. This acquisition will not require DPUC approval and it is expected to be completed by June 30, 2008.         

              The Company also signed a Letter of Intent with the Hawk’s Nest Beach Water Supply in Old Lyme, Connecticut, to acquire the assets of its seasonal water system along Connecticut’s shoreline for $550,000. Provided that the water quality and quantity of Hawk’s Nest water supply is determined to be suitable by Connecticut Water, an application will be filed with the DPUC requesting approval of the acquisition. It is expected that this acquisition would be completed in the second half of 2008. Hawk’s Nest serves a population of about 500.

             Eric W. Thornburg, President and CEO of Connecticut Water, says serving an expanding customer base is a focus of the Company. Mr. Thornburg states, “Connecticut Water is leveraging its human and financial resources, and its size to provide regional solutions to drinking water issues. We welcome the opportunity to serve new customers and are committed to providing world-class customer satisfaction.” He adds, that the Company has completed or announced five acquisitions in 2007.

              The Company previously announced the planned acquisition of Birmingham Utilities – Eastern Operations, which serves a population of more than 7,500, throughout Eastern Connecticut. The acquisition has been approved by the DPUC and is on track for a mid-January 2008 completion.

              Last March, Connecticut Water completed the acquisition of the Avery Heights water system in South Windsor. If the Company completes the remaining three acquisitions announced in 2007, it would grow the Company’s customer base by more than 3 percent.

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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.