UNITED WATER CLOSES 2003 WATERSHED RECREATION PROGRAM

Tighter security measures taken for water supply

Oradell, NJ, June 3, 2003 -- United Water announced today that it has closed its 2003 watershed recreation program due to heightened security needs. The program offers access to United Water reservoirs in both New York and New Jersey and the Nature Preserve on the Oradell Reservoir. It allows enrolled customers interested in fishing and birding access to the watershed properties from April through November. The recreation program has been closed since last fall when the homeland security alert was raised to orange. United Water was considering opening the program, prior to the recent heightened terrorist alert.

“We’re sure our customers understand the need for additional security measures at this time,” said Robert Iacullo, president of United Water New Jersey and New York. “Over the course of the year United Water will examine the safeguards that can be implemented to protect vital facilities throughout the watershed, in order to increase the likelihood of reopening the program next year.” Iacullo went on to urge people to avoid being on any United Water properties during these times of heighten security levels or risk removal by local authorities or authorized personnel.

The decision to close the program is part of the heightened security measures taken by the company. To date, the company has increased surveillance of its properties and has expanded its water quality testing of the reservoirs

United Water New Jersey and United Water New York provide water service to approximately 1,000,000 residents in Bergen, Hudson and Rockland counties. More information about United Water is available at www.unitedwater.com.