American States Water Company Announces Increase in Dividends

The Board of Directors of American States Water Company (NYSE:AWR) approved a $0.01 per share increase in its quarterly dividend to $0.26 per share on the Common Shares of the Company. This represents a 4% increase in the quarterly dividend. For more than 55 consecutive years, American States Water Company shareholders have received an aggregate annual increase in their dividends and this action marks the 294th consecutive dividend payment by the Company.

"I am pleased to announce this 4% increase in our quarterly dividend," said Robert J. Sprowls, President and CEO of American States Water Company. "This increase reflects our Board of Directors' continued confidence in the Company and its progress, and rewards those who have supported us for many years - our shareholders.”

Dividends on the Common Shares will be payable on December 1, 2009 to shareholders of record at the close of business on November 12, 2009.

American States Water Company is the parent of Golden State Water Company, American States Utility Services, Inc. and Chaparral City Water Company. Through its subsidiaries, AWR provides water service to 1 out of 37 Californians located within 75 communities throughout 10 counties in Northern, Coastal and Southern California (approximately 255,000 customers) and to over 13,000 customers in the city of Fountain Hills, Arizona and a small portion of Scottsdale, Arizona. The Company also distributes electricity to over 23,000 customers in the Big Bear recreational area of California. Through its contracted services subsidiary, American States Utility Services, Inc., the Company contracts with the U.S. government and private entities to provide various services, including water marketing and operation and maintenance of water and wastewater systems.