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American Water Names George MacKenzie Interim CEO

Voorhees, NJ - December 15, 2005

American Water, the largest and most geographically diversified provider of water services in North America, today announced the appointment of George MacKenzie as Interim President and Chief Executive Officer (CEO) of American Water, effective January 1, 2006. He will report directly to Harry Roels, Chief Executive Officer of RWE AG, American Water's corporate parent.

Mr. MacKenzie has been a member of the American Water Board of Directors since August 2003 and also has served as the Chair of the Audit Committee of the Board since February 2004.

Harry Roels has stated, "George's knowledge of American Water and his leadership qualities position him well to carry forward the strengths that have made the company the market leader it is today."

In addition to being a Director of American Water, George serves on the Board of Trustees of the Medical Center of Delaware and is a member of the Investment Committee at the University of Delaware. He is also a Director of Central Vermont Public Service Corporation, Safeguard Scientifics, Inc. and C&D Technologies, Inc., where he also served as Interim CEO early in 2005.

MacKenzie previously served as vice chairman of the Board and Chief Financial Officer of Hercules Incorporated, a global manufacturer of chemical specialties whose 5,000 employees generated sales of approximately $2 billion in fiscal 2004. During his 22-year career with Hercules he served in a variety of senior management roles including President of the Chemical Specialty Division.

Mr. Jeremy Pelczer, the current President and CEO of American Water, will continue to serve as a non-executive Chairman of American Water and head of RWE Thames Water.

Contact
Kimberly Cooper
856-346-8207

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