California Water Responds to SJWs Rejection of Its Cash Tender Offer

California Water Service Group (NYSE: CWT) (“California Water”) today
issued the following statement in response to SJW Group’s (NYSE: SJW)
(“SJW”) rejection of its cash tender offer to acquire all outstanding
shares of SJW for $68.25 per share in cash:

“Predictably, the SJW Board has taken a further step to entrench itself
and its management team by summarily rejecting California Water’s $68.25
all-cash tender offer, which we believe is far superior to that of SJW’s
proposed merger with Connecticut Water. Our proposal, which exceeds
SJW’s all-time high closing share price, and represents a 30% premium to
SJW’s share price at the time of our proposal, offers SJW stockholders
substantial value that we believe SJW and Connecticut Water cannot

“Instead of sitting down to negotiate a transaction with California
Water that can deliver value to its stockholders, and benefits
customers, communities and employees, SJW is grasping at an
ever-shrinking list of ‘reasons’ for rejecting our cash tender offer.
Included among such reasons is SJW Board’s self-imposed unwillingness to
do a transaction with California Water, and vague promises of benefits
from a proposed ‘merger of equals’ with an East Coast-based water
utility that is currently in the midst of a go-shop period and
attempting to fend off an unsolicited bid.

“Contrary to SJW’s assertions, we believe our tender offer is
significantly less conditional than the signed merger agreement with
Connecticut Water, which includes numerous additional conditions.
Specifically, the SJW-Connecticut Water transaction requires approval of
two-thirds of Connecticut Water’s outstanding shares, which under the
circumstances in our view makes a Connecticut Water transaction illusory.

“SJW is quick to criticize a transaction with California Water, also
noting that it would require regulatory review in California, but
curiously, SJW fails to mention in today’s rejection press release that
the California Public Utilities Commission has ordered that SJW file an
application to seek regulatory approval in California to complete its
‘merger of equals’ with Connecticut Water, a process that SJW previously
taunted could take 18 months. We encourage SJW in the future to display
a higher degree of candor with its own stockholders and other investors.”

About California Water Service Group

California Water Service Group is the parent company of California Water
Service, Washington Water Service, New Mexico Water Service, Hawaii
Water Service, CWS Utility Services, and HWS Utility Services. Together,
these companies provide regulated and non-regulated water service to
approximately 2 million people in more than 100 California, Washington,
New Mexico, and Hawaii communities. California Water Service Group’s
common stock trades on the New York Stock Exchange under the symbol
“CWT.” Additional information is available online at www.calwatergroup.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning
established by the Private Securities Litigation Reform Act of 1995
(“Act”). The forward-looking statements are intended to qualify under
provisions of the federal securities laws for “safe harbor” treatment
established by the Act. Forward-looking statements are based on
currently available information, expectations, estimates, assumptions
and projections, and management’s judgment about the Company, the water
utility industry and general economic conditions. Such words as would,
expects, intends, plans, believes, estimates, assumes, anticipates,
projects, predicts, forecasts or variations of such words or similar
expressions are intended to identify forward-looking statements. The
forward-looking statements are not guarantees of future performance.
They are subject to uncertainty and changes in circumstances. Actual
results may vary materially from what is contained in a forward-looking
statement. Factors that may cause a result different than expected or
anticipated include, but are not limited to: the failure to consummate
the proposed transaction with SJW upon the terms set forth in California
Water’s proposal; governmental and regulatory commissions’ decisions;
changes in regulatory commissions’ policies and procedures; the
timeliness of regulatory commissions’ actions concerning rate relief;
changes in environmental compliance and water quality requirements;
electric power interruptions; changes in customer water use patterns and
the effects of conservation; the impact of weather and climate on water
availability, water sales and operating results; civil disturbances or
terrorist threats or acts, or apprehension about the possible future
occurrences of acts of this type; labor relations matters as we
negotiate with the unions; restrictive covenants in or changes to the
credit ratings on our current or future debt that could increase our
financing costs or affect our ability to borrow, make payments on debt
or pay dividends; and, other risks and unforeseen events. When
considering forward-looking statements, you should keep in mind the
cautionary statements included in this paragraph, as well as our annual
10-K, Quarterly 10-Q, and other reports filed from time-to-time with the
Securities and Exchange Commission. California Water assumes no
obligation to provide public updates of forward-looking statements
except to the extent required by law.

Important Additional Information

On May 31, 2018, California Water filed a definitive proxy statement
with the Securities and Exchange Commission (the “Definitive Proxy
Statement”) to solicit proxies in opposition to resolutions related to
the pending merger between SJW Group and Connecticut Water Service, Inc.
CONTAIN IMPORTANT INFORMATION. All such documents, if filed, would be
available free of charge at the Securities and Exchange Commission’s
website (www.sec.gov)
or by directing a request to Innisfree M&A Incorporated at (888)
750-5834 (banks and brokers call collect at (212) 750-5833).

Participants in the Solicitation

California Water, its directors and certain of its officers and
employees may be deemed to be participants in any solicitation of SJW
Group stockholders in connection with the proposed transaction between
California Water and SJW Group. Information about such participants, and
a description of their direct or indirect interests, by security
holdings or otherwise, is included in the Definitive Proxy Statement.

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