Watlington Waterworks Ltd Release 2009 Interim Financial Results

Hamilton Bermuda - 25 September, 2009 - Watlington Waterworks Ltd (WWW.BH) releases announcement of financial results to 30 June, 2009 (unaudited).

Directors' Report to Shareholders

The first halt of 2009 has been a tale of two quarters. Net earnings were down $250,000 after the first quarter when compared to the first quarter of the previous year. By the end of the second quarter, net earnings were up $230,000 compared to the first half result for last year and ahead of the result for the first six months of 2007, which was a record year. The $450,000 swing in comparative results was a consequence of contrasting weather patterns from year to year.

In the year 2008, we had a winter to early spring drought that boosted sales. This year there was no winter drought, therefore sales were lower. The reverse occurred for the second quarter. The inference being a drought in the spring to early summer quarter raised demand much more than a winter drought.

This outcome highlights our ability to produce to meet high demand when called upon to do so. Our ongoing success now relies on this due to the downturn in tourism. We have reoriented our operations to suit local residential requirements as a first priority through our infrastructure strengthening. We are well positioned to provide future service to the tourism industry when its revival comes, In the meantime, we believe cur continued growth be will through expanding our services within the local resident community.

We continue to work towards improving operational efficiencies to increase production as we aim to improve both our pipeline and bottled water service to the local community. We cannot predict future weather patterns but on the basis of our first half result, and sales to date through the third quarter, despite the challenges of the current economic climate, we now believe that 2009 may turn out to be a stronger year for us than 2008.

                                               Six months to June30 

                                              2009                           2008

                                                $                                 $

Revenue from Operations       5156388                    4,651,795

Rentals                                   41,408                        42,795

Interest                                   13,352                        12,479

                                          5,211,148                    4,707,069

Income attributable to shareholders                           

                                          1,155,198                       925,219

Dividends paid                         210,756                       210,546

Shareholders equity              17,051414                  15,247,384

Total assets                        17,906,234                  16,210,049

Per Share amounts:

Netearnings                            1,10                               0.88

Dividends                                0.20                            0.20

Shareholders equity               16.17                          14.48

This summary information is extracted from the Company's Consolidated Financial Statements which are unaudited.

Directors' Share Interests

Pursuant to Regulation 6.8 (30 of section 11 B of the Bermuda Stock Exchange Listing Regulations, the total interest of all directors and officers of the Company as at June 30, 2009 was 244,655 (Dec 2008:

242,184) shares, No rights to subscribe for shares n the Company have been granted to or exercised by any director or officer, except for the managing director who qualifies under the employee share purchase plan.