American Water Prices Initial Public Offering

Company to List on New York Stock Exchange Under Symbol "AWK"
VOORHEES, N.J.--(Business Wire)--
American Water (NYSE: AWK) today announced its initial public
offering of 58 million shares of common stock has been priced at
$21.50 per share. All of the shares are being offered by the selling
stockholder, RWE Aqua Holdings GmbH, and net proceeds from the
offering will go to RWE. American Water's shares will begin trading on
April 23, 2008, on the New York Stock Exchange under the ticker symbol
"AWK."

The selling stockholder has granted the underwriters a 30-day
option to purchase up to 8.7 million additional shares of common
stock. After the initial public offering, and assuming no exercise of
the underwriters' option, the selling stockholder is expected to own
approximately 64 percent of American Water's shares.

Goldman, Sachs & Co., Citi, and Merrill Lynch & Co. are acting as
joint book-running managers in connection with the offering.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.

A registration statement relating to these securities has been
filed with, and declared effective by, the U.S. Securities and
Exchange Commission. A copy of the final prospectus may be obtained by
contacting any of the following:

-- Goldman, Sachs & Co., Attention: Prospectus Department, 85
Broad Street, New York, NY 10004, facsimile +1 212 902 9316,
e-mail prospectus-ny@ny.email.gs.com.

-- Citi, Brooklyn Army Terminal, 140 58th Street, 8th Floor,
Brooklyn, NY 11220, telephone +1 718 765 6732.

-- Merrill Lynch & Co., Attention: Prospectus Department, 4 World
Financial Center, 5th Floor, New York, NY 10080, telephone +1
212 449 1000.

You may also obtain the final prospectus when it is available on
the Securities and Exchange Commission's website at
www.sec.gov.

About American Water

Founded in 1886, American Water is the largest investor-owned U.S.
water and wastewater utility company. With headquarters in Voorhees,
N.J., the company employs nearly 7,000 dedicated professionals who
provide drinking water, wastewater and other related services to
approximately 15.6 million people in 32 states and Ontario, Canada.

American Water
Maureen Duffy, 856-309-4546
maureen.duffy@amwater.com
or
Julie Scharle, 856-309-4690
julie.scharle@amwater.com

Copyright Business Wire 2008