Oct 27 (Reuters) - Essential Utilities Inc ( WTRG ):

* AMERICAN WATER AND ESSENTIAL UTILITIES TO MERGE AS A

LEADING

REGULATED U.S. WATER AND WASTEWATER UTILITY

* AMERICAN WATER - ESSENTIAL SHAREHOLDERS TO RECEIVE 0.305

SHARES

OF AMERICAN WATER

* AMERICAN WATER - MERGER EXPECTED TO BE ACCRETIVE TO

AMERICAN

WATER'S EPS IN FIRST YEAR

* AMERICAN WATER - AMERICAN WATER SHAREHOLDERS TO OWN 69%

OF

COMBINED COMPANY UPON COMPLETION

* ESSENTIAL UTILITIES INC ( WTRG ): AMERICAN WATER EXPECTS TO

MAINTAIN 7-9%

LONG-TERM EPS AND DPS GROWTH TARGETS

* AMERICAN WATER - JOHN C GRIFFITH TO BE CEO, CHRISTOPHER

H.

FRANKLIN TO BE EXECUTIVE VICE CHAIR OF THE COMBINED COMPANY

* ESSENTIAL UTILITIES INC ( WTRG ): MERGED ENTITY TO HAVE A COMBINED

ENTERPRISE VALUE OF APPROXIMATELY $63 BILLION

* ESSENTIAL UTILITIES INC ( WTRG ): DAVID BOWLER WILL SERVE AS

EXECUTIVE

VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF COMBINED COMPANY

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