American Water Announces RWE to Complete Divestiture

American Water Works Company, Inc. (NYSE: AWK), the largest investor-owned U.S. water and wastewater utility company, today announced that the underwriters of the recent public offering of American Water's common stock have exercised their option to purchase 3.7 million additional shares of American Water's common stock from the selling stockholder in the offering, a subsidiary of RWE AG.

An offering of 37.4 million shares of American Water common stock priced at $21.63 per share on November 17, 2009. All the shares were sold by the selling stockholder, with all proceeds going to RWE. As a result of the full exercise of the underwriter's option, RWE will sell all of its shares of American Water's common stock.

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.

An effective registration statement relating to these securities is on file with the U.S. Securities and Exchange Commission. A copy of the final prospectus and prospectus supplement may be obtained by contacting any of the following:

-- BofA Merrill Lynch, 4 World Financial Center, New York, NY 10080, Attention: Preliminary Prospectus Department or email Prospectus.Requests@ml.com.

-- Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, One Madison Avenue, New York, NY 10010, telephone +1 800 221 1037

-- Morgan Stanley & Co., Incorporated, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, email: prospectus@morganstanley.com, telephone +1 866-718-1649.

You may also obtain the final prospectus and prospectus supplement on the U.S. Securities and Exchange Commission's website at http://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 more than 7,000 dedicated professionals who provide drinking water, wastewater and other related services to approximately 15 million people in 32 states and Ontario, Canada.

SOURCE: American Water Works Company, Inc.

American Water Works Company, Inc. 
Edward Vallejo 
Vice President, Investor Relations 
856-566-4005 
edward.vallejo@amwater.com 
or 
Maureen Duffy 
Director, Communications 
856-309-4546 
maureen.duffy@amwater.com

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