The company reported a net loss applicable to common stockholders for the quarter ended September 30, 2000 of $1,009,254, or $0.13 per common share, compared to a net loss applicable to common stockholders of $1,164,761, or $0.15 per common share, for the quarter ended September 30, 1999. Revenues for the quarter, entirely from water sales, were $375,258, compared to $376,165 for the comparable quarter of the preceding fiscal year.

Commenting on the results, Michael Patrick George, chairman, president and CEO of Western Water Company, said: "Although we continue to be dissatisfied with our financial results and with the progress of development of the water business in California, this quarter's results demonstrate continued progress toward our stated objectives of reducing losses and positioning the Company to successfully restructure its balance sheet and pursue profitable water marketing opportunities."

Since August 26, 2000 the company's stock is traded on the over-the-counter or "bulletin board" market system.

Western Water is engaged in the identification, development, transportation, sale and lease of water rights and water to municipalities and other end users in the western United States and owns water rights and real estate in California and Colorado.

Statements contained in this release which are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results or future events to differ from those contained herein. Factors that could cause actual results or events to differ include the Company's ability to purchase and sell water rights and obtain financing and other factors and considerations detailed in the Company's Securities and Exchange Commission filings.