Aqua America Completes 2010 Financing Plan

Aqua America, Inc. WTR announced today that its 2010 financing plan successfully lowered its overall cost of debt, which has resulted in interest expense savings for the company and lower bills for customers than would have otherwise been required. If the company had the same cost of debt that it had at the end of 2000, its interest expense would be over $27 million dollars more on an annual basis, and each customer's monthly bill would have been $2 more. In 2010, the company worked diligently to access the markets at favorable interest rates including borrowing $70 million at 4.98 percent in June through a private placement at Aqua America, and issuing $141 million of tax exempt bonds at 4.75 percent at its largest subsidiary, Aqua Pennsylvania. Both companies also were able to renew various lines of credit at more favorable rates than before. Aqua America's long-term debt now has a weighted average cost of 5.36 percent versus a weighted average cost of 7.20 percent at year end 2000.