American Water Announces Secondary Common Stock Offering

American Water (NYSE: AWK) today announced an offering of 37.4 million shares of common stock, by a subsidiary of RWE AG, as selling stockholder. Pursuant to the offering, all shares will be sold by the selling stockholder with proceeds going to RWE AG.

The selling stockholder has granted the underwriters a 30-day option to purchase up to 3.7 million additional shares. After the offering, and assuming full exercise of the underwriters’ option, the selling stockholder will have completed its divestiture of American Water.

BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and Morgan Stanley & Co., Incorporated are acting as joint book-running managers in connection with the offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

An effective registration statement relating to these securities is on file with the U.S. Securities and Exchange Commission. A copy of the prospectus and preliminary prospectus supplement may be obtained when they are available by contacting any of the following:

• BofA Merrill Lynch, Attention: Prospectus Department, One Bryant Park, New York, NY 10036, telephone +1 212 449 1000.
• Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, One Madison Avenue, New York, NY 10010, telephone +1 800 221 1037
• Morgan Stanley & Co., Incorporated, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, email: prospectus@morganstanley.com, telephone +1 866-718-1649.

You may also obtain the prospectus and preliminary prospectus supplement when they are available on the U.S. Securities and Exchange Commission's website at http://www.sec.gov.

About American Water

Founded in 1886, American Water is the largest investor-owned U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs more than 7,000 dedicated professionals who provide drinking water, wastewater and other related services to approximately 15 million people in 32 states and Ontario, Canada.