BIW Limited Discontinues Dividend Pending Closing of Merger Transaction

  
    
  
  
    
      BIW Limited, parent company of Birmingham Utilities and Birmingham H2O 
      Services (AMEX: “BIW”) 
      announced today that its Board of Directors has determined that it will 
      not make any further dividend payments to shareholders pending closing 
      of its merger with the South Central Connecticut Regional Water 
      Authority (RWA). Although the Company retained authority under its 
      merger agreement with RWA to pay a deferred third quarter dividend, the 
      Board of Directors determined that delays in obtaining regulatory 
      approvals and additional transaction expenses did not make it 
      practicable to pay any further cash dividends.
    
    
      The merger transaction with RWA is scheduled to close on or about 
      January 16, 2008. Upon closing of the merger, shareholders of BIW will 
      receive $23.75 in cash for each share of BIW Common Stock. BIW common 
      stock will no longer be traded and shareholders of BIW stock will have 
      no interest in the continuing operations of the Company. Once the 
      transaction is completed, the RWA will operate the regulated operations 
      of Birmingham Utilities in its Valley division of Ansonia, Derby and 
      parts of Seymour. As part of the transaction, the Connecticut Water 
      Company (CWC) will purchase the regulated and non-regulated operations 
      of Birmingham Utilities Eastern Division.
    
    
      BIW Limited is the parent company of Birmingham Utilities, Inc., a 
      regulated public water service company which collects and distributes 
      water for domestic, commercial and industrial uses and fire protection 
      in Ansonia, Derby and in small parts of the contiguous town of Seymour, 
      Connecticut, and Birmingham Utilities, Eastern Division consisting of 30 
      regulated water systems located in eastern Connecticut, as well as a 
      non-regulated contract operations business that monitors and services 
      another 51 water systems also in eastern Connecticut, and Birmingham H2O 
      Services, Inc., which provides water related services to other water 
      utilities, contractors, and individuals throughout Connecticut.
    
    
      FORWARD-LOOKING STATEMENTS
    
    
      Statements included in this press release, which are not historical in 
      nature, are forward-looking statements made pursuant to the safe harbor 
      provisions of the Private Securities Litigation Reform Act of 1995. 
      Statements relating to the closing of the merger with RWA are subject to 
      satisfaction of closing conditions provided in the merger agreement. 
      Statements relating to the future financial performance of the Company 
      are subject to business conditions and growth in the general economy, 
      weather conditions, regulatory decisions, the impact of competitive 
      products and pricing on the Company's non-regulated operations, failure 
      to obtain new customers or retain old customers or changes in the 
      financial stability of customers, and changes in interest rates. Such 
      statements are based upon the current beliefs and expectations of BIW 
      Limited management and are subject to significant risks and 
      uncertainties. Actual results may differ from those set forth in the 
      forward-looking statements. When used in this press release the terms 
      "anticipate," "believe," "estimate," "expect," "may," "objective," 
      "plan," "possible," "potential," "project," "will" and similar 
      expressions identify forward-looking statements.