TIDEWATER UTILITIES, INC. DISTRIBUTES ITS
ANNUAL WATER QUALITY REPORT TO CUSTOMERS

CONTACT: Gerard L. Esposito, President or Carol S. Murphy, Customer/Community Outreach Coordinator (302) 734-7500

DOVER, DE June 29, 2006 -- Tidewater Utilities, Inc. a water utility serving more than 28,000 homes and businesses in over 270 communities throughout Delaware, has issued its Annual Water Quality Report on 2005 water quality data to its customers. Tidewater operates over 183 wells and 87 water plants. In 2005, the Company produced more than 1.6 billion gallons of water throughout its service area, which extends from lower New Castle County in the north of Delaware to Sussex County near the state’s southern border with Maryland. Tidewater Utilities is the largest private water supplier south of the Chesapeake & Delaware Canal.

Tidewater Utilities conducts thousands of tests annually on its water quality to ensure water delivered to customers meets federal and state primary requirements. Tidewater’s report lists water quality data for each of the communities it serves. Issued in compliance with the Safe Drinking Water Act, Tidewater’s Annual Water Quality Report describes the source of the Company’s water supply and treatment methods and summarizes the Company’s groundwater quality results as compared to state and federal standards. The report also includes monitoring data and water-related health information.

Included in Tidewater’s water report is water quality data for Southern Shores Water Company, LLC, which serves 2,600 customers in Sussex County, and communities served by White Marsh Environmental Systems, Inc., which operates water and wastewater systems under contract.

In 2005, Tidewater Utilities, Inc. invested over $11.2 million in building and rehabilitating water mains, pumps and treatment facilities. Tidewater issues the water quality reports annually to keep customers informed about their drinking water and to increase awareness of the need to protect and preserve our drinking water sources. For more information about Tidewater, please visit its website at http://www.tuiwater.com

Copies of the report have been delivered to all customers. To obtain a copy of Tidewater’s 2005 Annual Water Quality Report, please call (800) 523-7224. Customers are encouraged to share the water quality report with all water consumers at their locations.