Birmingham Utilities Seeks Water Service Rate Increase

BIW Limited (AMEX: BIW) announced today that its
subsidiary Birmingham Utilities, Inc. has filed an application with
the Connecticut Department of Public Utility Control (DPUC),
requesting a $1,795,000 increase in water service rates. As part of
that application the Company is seeking rate equalization between its
two operating divisions. The Company's Ansonia or Valley division
includes service to customers in Ansonia, Derby and a portion of
Seymour. The Company's Eastern division includes service to customers
in 16 towns in eastern Connecticut, acquired in the Company's
acquisition of the Eastern Connecticut Regional Water Company in 2003.
The proposed increase of 24.87% will have the effect of increasing the
average residential customer's water bill in the Ansonia division by
about 35 cents per day. The average customer uses 73,000 gallons of
water per year in the Ansonia division. For the Eastern division
customers, the rate increases will vary depending on the type of
customer. Flat rate customers will see a rate increase from 15 cents
per day to 59 cents per day, while metered customers may actually see
a reduction in their bills ranging from 10 cents to 25 cents per day.
   John S. Tomac, Company President said, "The rate increase is
needed to cover the Company's investment it has made in plant
improvements since 2003 in both the Valley and Eastern divisions." Mr.
Tomac noted that as a result of increased capital investments,
depreciation expense and property taxes increase as well. "We continue
to manage operating expenses despite higher purchased water costs and
continued pressure on employee benefits costs." Tomac further noted
that water sales, particularly in the Valley division continue to
decline. He said, "we have never achieved revenue levels allowed in
our last rate decision in 2003 for our Valley division." Tomac lastly
noted that "rate equalization is important at this time as we believe
customer growth will take place in our Eastern division. The addition
of more customers will allow our fixed costs to be spread over a
larger base." The ultimate decision, however, in regard to rate
equalization will be made by the DPUC.

   Birmingham Utilities, Inc. a subsidiary of BIW Limited, is a
public water service company that serves approximately 32,000 people
in the cities of Ansonia, Derby and in parts of the town of Seymour
and 16 towns in eastern Connecticut.

   This press release contains forward-looking statements. While
these forward-looking statements represent our judgments and future
expectations concerning the development of our business and the timing
and impact of the pending rate application, a number of risks,
uncertainties, and other important factors could cause actual
developments and results to differ materially from our expectations.
These factors include, but are not limited to, regulatory approvals of
the application; the costs related to the application; the risk that
anticipated benefits will not be obtained or will not be obtained
within the time anticipated; and other key factors that could
adversely affect our business and financial performance contained in
our Form 10-K for the year ended December 31, 2005 and other filings
with the Securities and Exchange Commission. BIW Limited is under no
obligation (and expressly disclaims any such obligation) to update or
alter its forward-looking statements whether as a result of new
information, future events, or otherwise.