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EXHIBIT 99.1
NEWS
For Immediate Release
DATE: December 6, 2000
CONTACT: Daniel J. Meaney, Public Affairs Manager
1.860.669.8630 x3016 or 1.800.428.3985 x3016
Connecticut Water Service, Inc. to Acquire Massachusetts Water Company
Clinton, Connecticut, December 6, 2000 - Connecticut Water Service, Inc., a
holding company that owns several regulated water utilities and an unregulated
service company, has reached agreement to acquire Barnstable Holding Company
("Barnstable"). Barnstable owns Barnstable Water Company, serving over 7,200
water customers, or a population of approximately 40,000 in Barnstable,
Massachusetts, and BARLACO, Inc. a separate real estate company owning over 100
acres of residential and commercial land in Hyannis and Barnstable,
Massachusetts. The value of the transaction is approximately $6.5 million and
will result in an exchange of Barnstable stock for Connecticut Water Service,
Inc. stock (NASDAQ:CTWS).
The acquisition is expected to become accretive to Connecticut Water Service's
earnings within 12 months after closing due to operating and maintenance expense
savings and expansion of CTWS's successful unregulated business activities in
Massachusetts.
In announcing the agreement Marshall T. Chiaraluce, CEO of Connecticut Water
Service, Inc. said, "We are delighted that Barnstable has chosen to become part
of Connecticut Water. The acquisition will expand our regulated and unregulated
business base beyond Connecticut. The Barnstable operation will allow us to
expand the contract services business of our unregulated subsidiary, Connecticut
Water Utility Services, Inc., to water utilities and municipal water districts
throughout Massachusetts." In 1999, Connecticut Water Utility Services, Inc. had
revenues of approximately $1 million. These revenues were primarily generated
through operating contracts for a wide range of services provided to other
public and private water utilities in Connecticut. Chiaraluce added, "This is
our largest single acquisition to date and will add over 10% growth to our
existing customer base." CTWS presently serves
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