Pennichuck Corp. to Acquire Three Water Systems

Jan. 25, 2005

Pennichuck Corporation has announced the signing of an agreement to acquire three water systems in the Lakes Region and central part of New Hampshire.

Through an agreement with Central Water Company and Consolidated Water Company of Moultonboro, New Hampshire, Pennichuck will acquire the assets and franchise rights to the Locke Lake water system in Barnstead, the Birch Hill water system in Conway, and Sunrise Estates water system in Middleton, New Hampshire. Following regulatory approval, it is expected that the newly acquired water systems will be part of Pennichuck's subsidiary Pittsfield Aqueduct Company (PAC).

"We are pleased to be able to expand our operation into new areas of the state and to have the opportunity to provide service to over 1,100 new customers," said Don Correll, Pennichuck president and chief executive officer. "This acquisition is the largest by Pennichuck in almost seven years and is the result of the hard work and dedication of our staff and our renewed growth and marketing plans initiated during 2004."

"The fastest growing region in the state of New Hampshire is the Lakes Region, particularly Belknap County", said Steve Densberger executive vice president, Pennichuck Corporation. "We see the Lakes Region as a very desirable area to expand our business. Our strategic business relationship with Integrated Water Systems will provide Pennichuck immediate presence in support of servicing the Lakes Region."

PAC will take over the day-to-day operations and system management of the three regulated water systems. Integrated Water Systems, an affiliate of Central Water Company and Consolidated Water Company, will continue to operate separately in its core business of supplying, replacing and servicing water treatment systems and pump equipment.

"Integrated Water Systems will expand its water treatment and maintenance services across New Hampshire, Maine and Vermont while maintaining an ongoing business relationship with Pennichuck," said Ray Seeley, Integrated Water Company president.

Certified by the New Hampshire Department of Environmental Service (NHDES) and Massachusetts Department of Environmental Protection, Pennichuck, through its strategic partnership with Integrated Water Systems in the Lakes Region, will offer monthly service contracts that include certification, regular sample collecting, laboratory testing, and reporting, as well as monitoring wellhead pumps, motors, electrical equipment, piping and metering. The company also provides professional expertise for handling water quality and treatment solutions, system improvements and repairs, and regulatory compliance.

"The three water systems will be streamlined and operated through our Pittsfield Aqueduct subsidiary, maintaining local operation while providing customers with the benefit of our large engineering, operating and customer service staff and our 153 years of experience in water service," added Densberger.

Pennichuck Corporation is a holding company located in Merrimack, New Hampshire with three wholly owned operating subsidiaries involved in regulated water supply and distribution in Nashua and towns throughout southern and central New Hampshire; non-regulated, water-related services conducted through Pennichuck Water Service Company; and real estate management and development activities conducted through The Southwood Corporation.

Source: Pennichuck Corporation