Clinton, Connecticut, August 8, 2007 - Connecticut Water Service, Inc. (NASDAQ GS: CTWS) announced that its earnings for the second quarter of 2007 continued to show strong gains over the same period of 2006. For the period from April 1 to June 30, 2007, income from continuing operations totaled $1.9 million, or $0.22 per basic common share, nearly doubled from the same period last year. For the same period in 2006, the Company reported income from continuing operations of $977,000, or $0.12 per basic common share.

The Company’s core business, the Water Activities Segment, showed robust year-over-year growth in the second quarter. In 2007, second quarter income from continuing operations in the Water Activities Segment was $1.7 million, or $0.20 per basic common share, which represents a significant increase from the $0.11 per basic common share reported for the same period in 2006.

The Company also experienced growth in income from continuing operations in its Services and Rentals Segment in the second quarter when compared to 2006. In the second quarter, this segment had income of $181,000. In the same period of 2006, the segment reported income of $136,000. The gain in the Service and Rentals Segment was largely attributable to improved margins. As expected, there was no income from the Real Estate Segment.

Eric Thornburg, Chairman, President and Chief Executive Officer, stated: The Water Activities Segment of our business, which represents more than 93% of the Company's revenues in the second quarter, has been firmly reestablished as our growth driver and is gaining momentum. Our new rates, which became effective on January 1st, and customer growth through acquisitions and building activity were big contributors to that success. Our previously announced plan to acquire the Eastern Connecticut operations of Birmingham Utilities will provide another 2,200 customers later this year or early next. Mr. Thornburg noted that the joint application to acquire Birmingham Utilities- Eastern Operations is before the Connecticut Department of Public Utility Control with a decision anticipated in the fourth quarter.

Overall, in the first half of the year, income from continuing operations was $3.3 million, or $0.40 per basic common share. In the same period of 2006, the Company reported income of $2.7 million, or $0.33 per basic common share. It should be noted that in the first-half of 2006, the Company benefited from a large land sale to the Town of Barnstable, Massachusetts. The sale generated income of approximately $900,000. There was no corresponding large land sale in 2007.

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 Connecticut Water, 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, industrial demand, 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 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.