ELIZABETHTOWN WATER COMPANY REPORTS CONTINUED PROGRESS ON 60-INCH MAIN, BOIL WATER ADVISORY REMAINS IN EFFECT

WESTFIELD, NJ - May 1, 2001 - Elizabethtown Water Company reports continued progress restoring normal service to customers following a break late last night on a major transmission main leaving its primary water treatment plant in Bridgewater. However, all Elizabethtown customers, as well as those served by Liberty Water Company and Edison Water Company should continue to boil their water before drinking.

"We are pleased that our customers began seeing normal pressures and flows after we were able to close valves and isolate the damaged main early this morning," said Andrew Chapman, President of Elizabethtown Water Company. "While we still need to refill our storage tanks, we are optimistic that the situation will improve through the coming night," said Chapman.

The Company recommends, as a precautionary measure, that all customers served by Elizabethtown, Liberty, and Edison Water Companies boil their water before drinking or otherwise ingesting the water. This boil water advisory is standard practice after a major main break because low water pressures in the mains can allow contamination to enter the pipes. The Company has no evidence that the mains are contaminated.

The Company expects that the boil water advisory will remain in effect for several days while it runs tests to confirm that the water is fit for drinking. The New Jersey Department of Environmental Protection agrees with the Company's boil water advisory and will oversee the Company's water quality testing. The NJDEP's public notice language is shown below.

Elizabethtown continues to make progress repairing the damaged main. Repair crews have been on site since early morning pumping out the crater caused by the main break, which is in a remote, swampy area near the Raritan River. The area must be fully drained before the damage can be excavated and fully assessed. The repair will require several days to complete and the water in the damaged main must be fully flushed and chlorinated.

"The cooperation from the City of Newark and neighboring suppliers helped minimize customer disruption," said Chapman. "We further appreciate the dedication of our staff in leading our Company and our customers through this event." The NJDEP provides the following notice to customers related to the boil water advisory:

The Department of Environmental Protection has determined that a potential or actual threat to the quality of water being provided to you currently exists. Therefore, until further notice, bring tap water to a rolling boil for one minute and allow to cool before using for consumption; drinking, ice cubes, washing vegetables and fruit, and for brushing teeth. Please continue to boil your water until you are notified that the water quality is acceptable.

The Company is assessing the situation in the field and will provide further information as it becomes available. Further updates will be posted on the website at www.etownwater.com.

MAIN BREAK CAUSES BOIL WATER ADVISORY AND
LOW PRESSURE THROUGHOUT SERVICE TERRITORY

WESTFIELD, NJ - May 1, 2001 - Late Monday night, April 30, Elizabethtown Water Company experienced a main break on a major transmission main near its primary water treatment plant in Bridgewater. The break also affects customers of Edison and Liberty water companies.

The Company has issued a precautionary boil water advisory notice just in case contamination has entered into its distribution system due to low pressure in the mains. There is no evidence that contamination has entered the Company's distribution system. The boil water advisory is precautionary at this time.

Significant parts of the Company's service territory are experiencing low or no pressure. Elizabethtown appeals to all customers to conserve water to preserve fire protection capacity and pressure throughout its service territory.

The Company is assessing the situation in the field and will provide further information as it becomes available. Further updates will be posted on the website at www.etownwater.com.

Elizabethtown Water Company, a wholly-owned subsidiary of Thames Water, provides retail water service in 54 municipalities in Burlington, Hunterdon, Mercer, Middlesex, Morris, Ocean, Somerset, and Union counties. The following is a list of towns that are served in each one of these counties: