FOR IMMEDIATE RELEASE

Contact:          Brigid M. Smith           Andrea L. Simpson
                  Citizens Utilities        BHP Hawaii/Gasco, Inc.
                  (203) 329-5042            (808) 547-3450
                  bsmith@czn.com            Pager (808) 530-6989

                  Arthur Dague
                  Citizens Utilities
                  (203) 329-5094
                  adague@czn.com


                         CITIZENS UTILITIES TO ACQUIRE
                            BHP HAWAII'S GASCO, INC.

Stamford,  CT and Honolulu,  HI,  January 9, 1997 -- Citizens  Utilities and BHP
Hawaii,  Inc.  jointly  announced today that they have entered into a definitive
agreement for Citizens to purchase all of the outstanding  stock of Gasco,  Inc.
for  approximately  $100  million.  Gasco,  Inc. is a gas  distribution  company
serving 70,000 customers in Hawaii. BHP Hawaii, Inc. is owned by The Broken Hill
Proprietary  Company  Limited  (BHP),  the  largest  publicly  held  company  in
Australia. BHP had earlier announced its intention to divest Gasco, Inc. as part
of a worldwide  strategic  asset  review.  The transfer of  ownership,  which is
subject to Hawaii Public Utilities Commission and federal regulatory  approvals,
is expected to be completed in mid-1997.

         This  transaction  reinforces  Citizens'  strategic  effort to focus on
geographic areas where it already has a strong market presence.  The transaction
also fits well with BHP  Hawaii's  strategy to focus on refining  and  petroleum
product marketing.

         Citizens'  chairman and chief  executive  officer,  Leonard Tow,  said,
"Citizens'  strategy is to acquire  businesses that are within its core markets.
We are  extremely  knowledgeable  about the gas business  and excited  about the
opportunity  to add gas  marketing in Hawaii to our electric  operations  in the
state." Mr. Tow remarked, "The Hawaiian market is unique, and we pride ourselves
on understanding the challenges and benefits of operating in the State."

         Mr. Tow added, "This  transaction  will  generate  increased  earnings,
earnings per share and cash flow for Citizens  shareholders from the outset. The
transaction will be funded from balance sheet liquidity and internally generated
cash flows."

         Henry Neal,  president of BHP Hawaii,  Inc.,  stated, "We are extremely
pleased to enter this transaction with a company that has a history of providing
quality opportunities for its employees and excellent service to its customers."
He added,  "Citizens has a long and commendable  record of service to the people
of Hawaii and a great deal of experience in the electric and gas  businesses.  I
am delighted  that their  expertise and  commitment  to  excellence  will now be
shared with Gasco's employees and customers."

         In commenting on the  transaction,  Hawaii  Governor Ben Cayetano said,
"Citizens Utilities' new multi-million dollar investment  demonstrates continued
confidence in Hawaii's economy.  The State is encouraged by Citizens' commitment
to provide quality gas and electric services for Hawaii's consumers."

         Citizens  Utilities (NYSE:  CZNA, CZNB, CZNPr) is a  telecommunications
and utility company serving 1.8 million customers in 20 states.

         The  Broken  Hill  Proprietary   Company  Limited  (NYSE:  BHP)  is  an
international  resources  company with four main businesses,  petroleum,  steel,
copper and minerals.  Headquartered  in Melbourne,  Australia,  BHP has offices,
operations, exploration and development sites in 59 countries.