American States Water Company Announces Privatization Contract Award for Fort Riley, Kansas

Estimated Contract Value of $601 Million Over a 50-Year Period

SAN DIMAS, Calif.–(BUSINESS WIRE)–American States Water Company (AWR: NYSE) announced today that its
contracted services subsidiary, American States Utility Services, Inc.
(“ASUS”), has been awarded a 50-year contract by the U.S. government to
operate, maintain, and provide construction management services for the
water distribution, wastewater collection, and treatment facilities at
Fort Riley, a United States Army installation located in Kansas. The
value of the contract is estimated at approximately $601 million over a
50-year period and is subject to annual economic price adjustment. Under
the contract, there is a 9-month transition period to ensure seamless
operations are established and inventory assets are fully accounted for
in the contract.

“We are very pleased to have been awarded another significant 50-year
contract, which confirms our strong relationship with the U.S.
government and their continued confidence in our expertise and
experience in managing water and wastewater systems on military bases,”
stated Robert J. Sprowls, President and CEO of American States Water
Company. “This win marks another important milestone in the growth
strategy of our contracted services business and we are well positioned
to continue competing for new contracts in the future.”

Fort Riley is a United States Army installation located in North Central
Kansas and is currently home to the 1st Infantry Division.
Fort Riley is also the site of the United States Cavalry School. At over
100,000 acres, Fort Riley has a daytime population of nearly 25,000.
With the addition of Fort Riley, ASUS will be providing water and
wastewater utility services at eleven military bases located within
eight states.

Forward Looking Statements

Certain matters discussed in this news release with regard to the
Company’s expectations may be forward-looking statements that involve
risks and uncertainties. The assumptions and risk factors that could
cause actual results to differ materially include those described in the
Company’s most recent Form 10-Q and Form 10-K filed with the Securities
and Exchange Commission.

About American States Water Company

American States Water Company is the parent of Golden State Water
Company and American States Utility Services, Inc. Through its utility
subsidiary, Golden State Water Company, AWR provides water service to
approximately 259,000 customers located throughout 10 counties in
Northern, Coastal and Southern California. The Company also distributes
electricity to approximately 24,000 customers in the City of Big Bear
and surrounding areas in San Bernardino County, California. Through its
contracted services subsidiary, American States Utility Services, Inc.,
the Company provides operations, maintenance and construction management
services for water and wastewater systems located on military bases
throughout the country under 50-year privatization contracts with the
U.S. government.

American States Water Company has paid dividends to shareholders every
year since 1931, increasing the dividends received by shareholders each
calendar year for 63 consecutive years, which places it in an exclusive
group of companies on the New York Stock Exchange that have achieved
that result.

Contacts

American States Water Company
Eva G. Tang, 909-394-3600, ext. 707
Senior
Vice President-Finance, Chief Financial Officer,
Corporate
Secretary and Treasurer