Dividend Philosophy

• Cal Water's goal is to provide stockholders with consistent dividend growth while maintaining the Company's financial strength.
• 2008 dividend rate of $1.17 per share.
• Dividends have been paid for the last 63 years and have been increased for 41 consecutive years.
• The Company's goal is to achieve a dividend payout ratio in the 60% range.

Dividend Reinvestment and Stock Purchase Plan

Cal Water offers a Dividend Reinvestment and Stock Purchase Plan, which allows new and existing stockholders to purchase common stock directly from the Company through our transfer agent, American Stock Transfer & Trust Company. It also allows stockholders to reinvest dividends to purchase additional stock. For information on the Plan, contact American Stock Transfer & Trust Company at (800) 937-5449.

Dividend Dates for 2008