Middlesex Water, established in 1897, owns and operates regulated waterutility and wastewater systems in New Jersey and Delaware. It alsooperates water and wastewater systems under contract on behalf of municipaland private clients in New Jersey and Delaware.

MES was created in 1970 to protect Maryland's air, land and waterresources. An independent state agency, MES works with government andprivate sector clients on projects including water and wastewatertreatment, solid waste management, recycling and dredged materialmanagement.

"The MOU with Maryland Environmental Service, already a licensed operatorin Maryland, is a significant step in our growth plans in Maryland," saidDennis W. Doll, President and Chief Executive Officer. "We recognized thatMES's focus on providing high quality, affordable water and wastewaterservices, combined with a strong emphasis on environmental stewardship,closely mirrors our own philosophy. Our combined operational strengthcoupled with Middlesex's access to the capital markets and MES's local andregional knowledge will help ensure these goals are met."

Middlesex Water intends to utilize MES for the operation and maintenance oftreatment, collection and distribution systems and plants and may requestadditional services including obtaining permits, installation of newwater/wastewater services and construction inspection.

"We are pleased to be working with Middlesex Water, a leading full-servicecompany that shares our commitment to providing sound, technical innovativewater and wastewater solutions," said Jim Harkins, Director of MES. "Weare certain that this partnership will benefit the people and theenvironment of the State of Maryland."

For additional information regarding Middlesex Water Company, visit theCompany's website at www.middlesexwater.com or call (732) 634-1500.