United Water and Milwaukee Sign Nation's Largest Public-Private Partnership for Wastewater Operations

HARRINGTON PARK, NJ, January 5, 1998 -- United Water Resources (NYSE:UWR) today announced that its affiliate, United Water Services, signed the nation's largest public-private partnership agreement for wastewater operationsæa 10-year agreement with the Milwaukee Metropolitan Sewerage District (MMSD). The MMSD, which currently provides wastewater services to 1.2 million residents, will pay United Water Services an annual operations and maintenance fee of $29.8 million.

United Water will manage MMSD's two large wastewater treatment plants, a Milorganite bio-solids fertilizer plant, the sewer interceptor system and deep tunnel storage networks in addition to its 30-megawatt power plant. Milwaukee-area customers are guaranteed to save in excess of $140 million as a result of the new contract. United Water already has agreed to hire all MMSD employees at current wages and benefits packages.

"We are very excited about the contract and look forward to serving the residents of the Milwaukee metropolitan area and working with the employees of the MMSD," stated Donald Correll, chairman & CEO of United Water.

According to David Sherman, president f United Water Services, "We believe our technical background in operations and maintenance, combined with the talents of the existing workforce, will continue to enhance Milwaukee's reputation as a leader in the environmental area."

As part of the contract with the MMSD, United Water will operate and maintain the city's two wastewater treatment plantsæJones Island & South Shore; produce high quality, golf course-grade Milorganite fertilizer from the city's sewer sludge and maintain Milwaukee's sewer interceptor system and deep tunnel network. The company will also install a premier computerized maintenance management system to track and record all maintenance and repairs performed for MMSD, which will have on-line access to the system at all times.
Combined, the Jones Island and South Shore facilities are currently handling 215 million gallons per day (MGD) and have capacities of 300 MGD and 250 MGD respectively. The two facilities serve 28 communities covering over 420 square miles both inside and outside of Milwaukee County. The MMSD will continue to provide compliance oversight and monitor United Water's performance of the operation during the contract period.

"This is an action that will save our ratepayers a significant amount of money, while at the same time providing the same high quality level of service," said Anne Spray Kinney, MMSD executive director. "We have worked very hard to ensure that this contract is in the best interests of all municipalities and residents the District serves. We expect it will be used as a model by other cities across the country who are considering a similar step."

United Water Services, headquartered in Harrington Park, NJ, is a leading provider of water and wastewater services in North America. The company is a joint venture of United Water Resources (NYSE:UWR), the nation's second largest investor-owned water services firm, which provides water and wastewater services to about 5 million people in 19 states, and Suez Lyonnaise des Eaux, the world leader in environmental infrastructure services, which provides water and wastewater services to more than 70 million people in 120 countries.