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RWE To Pursue Initial Public Offering for American Water


 VOORHEES, N.J.--(BUSINESS WIRE)--March 24, 2006--The Executive Board of RWE AG, parent company to American Water, decided to pursue an initial public offering (IPO) in the U.S. for the shares of American Water as the most attractive option for RWE and the U.S.-based company, its employees and customers. This decision will return American Water to its status as a publicly-traded company. RWE had previously announced on November 4, 2005 its intention to divest American Water either through an IPO or by selling American Water to a group of financial investors.

The IPO will result in a publicly-traded company that is focused on water and wastewater in the U.S. and dedicated to maintaining a high level of service and quality.

The sales process is expected to be initiated shortly through filings for approval with certain state public utility commissions. The IPO will require filing of a registration statement with the U.S. Securities and Exchange Commission (SEC). The transaction will also be subject to the approval of the RWE AG Supervisory Board. The target is to complete the transaction during 2007.

RWE provides customers with electricity, gas and water as well as services related to these products. The company's core markets are Germany, the UK and Continental Europe. In fiscal year 2005, approximately 86,000 employees worldwide within the RWE Group generated sales of about EUR 42 billion.

American Water, headquartered in Voorhees, New Jersey, is the largest and most geographically diversified provider of water services in North America. The company has regulated and non-regulated utility businesses located across 29 states and three Canadian provinces. In fiscal 2005, 6,850 American Water employees generated over $2.2 billion in revenues. The company also serves over 18 million people with clean drinking water and wastewater services.

 

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