DPUC Issues Final Decision on Rate Amendment Application of Birmingham Utilities, Inc.

  
    
  
  
    
      BIW Limited (AMEX:BIW), announced today that its regulated water 
      utility, Birmingham Utilities, Inc., was granted a $1,172,148 annual 
      increase in water service rates by the CT Department of Public Utility 
      Control (DPUC). The Company filed an application with the DPUC on May 
      19, 2006 requesting a $1,793,976 rate increase, which was subsequently 
      reduced to $1,782,728. The overall increase, which amounts to 16.2%, 
      will have the effect of increasing the average residential customer’s 
      water bill by about 22 cents per day, or $20.22 per quarter. The average 
      customer uses approximately 18,000 gallons of water per quarter and 
      would pay approximately $123.22 per quarter. With the increase, water 
      will cost about 7 tenths of one cent per gallon.
    
    
      BIW Limited President, John S. Tomac, said, “Although 
      the increase is less than the Company requested, we are pleased the DPUC 
      recognized and allowed the capital improvements the Company has made in 
      its Ansonia and Eastern divisions since 2003. The Company’s 
      rate base has grown from $13,305,072 in 2003 to $22,842,840 in 2006. 
      These capital improvements were imperative as our water systems must 
      remain viable. We have been working diligently to insure the service we 
      provide and the water we deliver is above our customers’ 
      expectations and all regulatory standards.” 
      The DPUC set the Company’s return on equity at 
      10.2%. The decision also allows the Company to recover increases in 
      depreciation expense and property taxes since 2003. Tomac also stated, “In 
      large part, the reduction in the allowed amount versus the requested 
      increase was a reduction in the allowed rate of return on equity and the 
      disallowance of certain operating expenses.”
    
    
      BIW Limited (BIW or the Company) 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 the Naugatuck Valley towns of Ansonia, Derby, and in 
      small parts of the contiguous Town of Seymour. Water service is also 
      provided for domestic and commercial use in 33 satellite water 
      operations in 16 towns in eastern Connecticut.
    
    
      Birmingham H2O Services, Inc., the Company’s 
      non-regulated subsidiary, offers a consumer protection program for 
      residential service lines and provides water related services to other 
      water utilities, municipalities, contractors and individuals throughout 
      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 impact 
      of the 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, 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.
    
  
BIW Limited (AMEX:BIW), announced today that its regulated water
utility, Birmingham Utilities, Inc., was granted a $1,172,148 annual
increase in water service rates by the CT Department of Public Utility
Control (DPUC). The Company filed an application with the DPUC on May
19, 2006 requesting a $1,793,976 rate increase, which was subsequently
reduced to $1,782,728. The overall increase, which amounts to 16.2%,
will have the effect of increasing the average residential customer's
water bill by about 22 cents per day, or $20.22 per quarter. The
average customer uses approximately 18,000 gallons of water per
quarter and would pay approximately $123.22 per quarter. With the
increase, water will cost about 7 tenths of one cent per gallon.

   BIW Limited President, John S. Tomac, said, "Although the increase
is less than the Company requested, we are pleased the DPUC recognized
and allowed the capital improvements the Company has made in its
Ansonia and Eastern divisions since 2003. The Company's rate base has
grown from $13,305,072 in 2003 to $22,842,840 in 2006. These capital
improvements were imperative as our water systems must remain viable.
We have been working diligently to insure the service we provide and
the water we deliver is above our customers' expectations and all
regulatory standards." The DPUC set the Company's return on equity at
10.2%. The decision also allows the Company to recover increases in
depreciation expense and property taxes since 2003. Tomac also stated,
"In large part, the reduction in the allowed amount versus the
requested increase was a reduction in the allowed rate of return on
equity and the disallowance of certain operating expenses."

   BIW Limited (BIW or the Company) 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 the Naugatuck Valley towns of
Ansonia, Derby, and in small parts of the contiguous Town of Seymour.
Water service is also provided for domestic and commercial use in 33
satellite water operations in 16 towns in eastern Connecticut.

   Birmingham H2O Services, Inc., the Company's non-regulated
subsidiary, offers a consumer protection program for residential
service lines and provides water related services to other water
utilities, municipalities, contractors and individuals throughout
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 impact
of the 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, 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.