[GRAPHIC OMITTED] NEWS RELEASE
CALIFORNIA WATER SERVICE GROUP [OBJECT OMITTED]
1720 North First Street
San Jose, CA 95112-4598 September 28,2005
Contact: Shannon Dean (310) 257-1435
JOHN S. TOOTLE NAMED ACTING CHIEF FINANCIAL OFFICER;
RICHARD D. NYE PLACED ON ADMINISTRATIVE LEAVE
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SAN JOSE, CA - The California Water Service Group (NYSE : CWT) Board of
Directors today named John S. Tootle as Acting Vice President, Chief Financial
Officer and Treasurer and placed Richard D. Nye on administrative leave
following civil litigation filed against Nye by the U.S. Securities and Exchange
Commission (SEC); the SEC's allegations against Nye relate solely to his prior
positions at another company and have no relationship to California Water
Service Group.
Tootle served as California Water Service Group's Corporate Counsel prior
to assuming this position. He joined the company in May of 2000 when it acquired
Dominguez Services Corporation, where he had served as Chief Financial Officer
since 1987. Before joining Dominguez Services Corporation's executive team,
Tootle served as Chief Financial Officer for United Business Interiors, Senior
Internal Auditor for Republic Corporation, and Auditor for
PricewaterhouseCoopers. An attorney and certified public accountant, he brings
more than 25 years of financial experience to the position.
Peter C. Nelson, President and Chief Executive Officer, said, "This SEC
action relates solely to another company. Cal Water has always maintained the
highest standards for its internal controls and financial reporting. We received
an unqualified opinion from our independent auditors regarding management's
assessment of our internal controls for the year ending December 31, 2004. Our
controls are documented and tested throughout the year. Separately, our
independent auditors issued an unqualified opinion on our financial statements
for 2004. I am confident in our ability to continue to meet the highest
standards in our financial management of the Company."
California Water Service Group is the parent company of California Water
Service Company, Washington Water Service Company, New Mexico Water Service
Company, Hawaii Water Service Company, Inc., and CWS Utility Services. Together
these companies provide regulated and non-regulated water service to more than 2
million people in 100 California, Washington, New Mexico, and Hawaii
communities. Group's common stock trades on the New York Stock Exchange under
the symbol "CWT."
This news release contains forward-looking statements within the meaning
established by the Private Securities Litigation Reform Act of 1995 ("Act"). The
forward-looking statements are intended to qualify under provisions of the
federal securities laws for "safe harbor" treatment established by the Act.
Forward-looking statements are based on currently available information,
expectations, estimates, assumptions and projections, and management's judgment
about the Company, the water utility industry and general economic conditions.
Such words as expects, intends, plans, believes, estimates, assumes,
anticipates, projects, predicts, forecasts or variations of such words or
similar expressions are intended to identify forward-looking statements. The
forward-looking statements are not guarantees of future performance. They are
subject to uncertainty and changes in circumstances. Actual results may vary
materially from what is contained in a forward-looking statement. Factors that
may cause a result different than expected or anticipated include: governmental
and regulatory commissions' decisions, including decisions on proper disposition
of property; changes in regulatory commissions' policies and procedures; the
timeliness of regulatory commissions' actions concerning rate relief; new
legislation; the ability to satisfy requirements related to the Sarbanes-Oxley
Act and other regulations on internal controls; electric power interruptions;
increases in suppliers' prices and the availability of supplies including water
and power; fluctuations in interest rates; changes in environmental compliance
and water quality requirements; acquisitions and our ability to successfully
integrate acquired companies; the ability to successfully implement business
plans; changes in customer water use patterns; the impact of weather on water
sales and operating results; access to sufficient capital on satisfactory terms;
civil disturbances or terrorist threats or acts, or apprehension about the
possible future occurrences of acts of this type; the involvement of the United
States in war or other hostilities; restrictive covenants in or changes to the
credit ratings on our current or future debt that could increase our financing
costs or affect our ability to borrow, make payments on debt or pay dividends;
and, other risks and unforeseen events. When considering forward-looking
statements, you should keep in mind the cautionary statements included in this
paragraph. The Company assumes no obligation to provide public updates of
forward-looking statements. Additional information is available at our Web site
at www.calwatergroup.com.
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