Milberg LLP Announces Its Investigation on Behalf of Certain Investors of SouthWest Water Company -- SWWC

  The law firm of Milberg LLP is investigating
alleged financial improprieties as pled in class action lawsuits filed in
the United States District Court for the Central District of California on
behalf of all investors who purchased SouthWest Water Company ("SouthWest
Water" or the "Company") (NASDAQ: SWWC) common stock between May 10, 2005,
and November 7, 2008, inclusive (the "Class Period").

The lawsuits charge SouthWest Water and certain of its officers and directors with violations of the Securities Exchange Act of 1934. SouthWest Water provides operations, maintenance and management services, including water production, treatment and distribution, wastewater collection and treatment, customer service, and utility infrastructure construction management. The Company owns regulated public utilities and also serves cities, utility districts and private companies under contract. The complaint alleges that, during the Class Period, Defendants issued numerous materially false and misleading statements which caused SouthWest Water's securities to trade at artificially inflated prices.

According to the complaints, defendants failed to disclose or indicate the following: (1) that the Company had improperly accounted for the rate of depreciation of assets acquired by acquisition; (2) that the Company had improperly accounted for revenues and related costs associated with the installation of water and sewer taps; (3) that the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (4) that the Company lacked adequate internal and financial controls; and (5) that, as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.

On November 10, 2008, the Company announced that the Company's audit committee concluded that the financial statements for the years ended December 31, 2005, 2006 and 2007, and for each of the quarters therein, as well as for the quarters ended March 31, 2008 and June 30, 2008, should no longer be relied upon and would be restated. The errors that led to the restatement related to the establishment of the rate of depreciation of assets acquired by the Company through acquisitions, and in accounting for revenues and related costs associated with the installation of water and sewer taps. Upon the release of this news, the Company's shares fell $2.97 per share, or more than 36%, to close on November 10, 2008 at $5.25 per share, on unusually heavy trading volume.

If you purchased securities of SouthWest from May 10, 2005, through November 7, 2008, you may move the court no later than January 26, 2009, and request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. You may retain Milberg LLP, or other attorneys, to serve as your counsel in this action.

Milberg LLP has been representing individual and institutional investors for nearly 40 years and serves as lead counsel in federal and state courts throughout the United States. Please visit the Milberg website (http://www.milberg.com) for more information about the firm. If you wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact the following attorneys:

Peter Safirstein Andrei Rado Milberg LLP One Pennsylvania Plaza, 49th Fl. New York, NY 10119-0165 Phone number: [phone] Email: [e-mail] Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.