Dividend Reinvestment and Stock Purchase Plan

Dividend Reinvestment & Stock Purchase | Dividends and Splits

Shares of Southwest Water Company (NASDAQ: SWWC) common stock can be purchased directly from the company by means of the Amended and Restated Dividend Reinvestment and Stock Purchase Plan (the "Plan").

Key Features

• Minimum initial investment of $250 ($10,000 maximum)
• Optional monthly payments ($25 minimum, $10,000 maximum)
• Dividend reinvestment available at a 5% discount
• Brokerage fees on purchases paid by Southwest Water Company
• Web-based enrollment and account access and management
• Optional shareholder communication via e-mail

Why Participate?

• Great opportunity for investors to make an initial investment
• A convenient and economical way for existing shareholders to increase holdings of SWWC common stock
• Discounts on cash dividends reinvested
• No brokerage fees, no service charges on purchases

Please read the Prospectus carefully before you make the decision to invest.

Participation in the Plan
Common stock can be purchased directly from the Company through our Transfer Agent and Plan Administrator, Mellon Investor Services, who administers the Plan and acts as Plan Administrator for the participants. It purchases and holds shares of common stock for Plan participants, keeps records, sends statements and performs other duties required by the Plan.

Individuals investing in the Plan for the first time need to complete an enrollment form. Contact the Plan Administrator to receive it in the mail or enroll in the Plan online. Alternatively, you can request an enrollment form directly from Southwest Water Company at swwc@swwc.com or (213) 929-1800.

Existing shareholders can invest by accessing their accounts online.
After you log in, click on your SWWC account and go to Account Preferences. Under Dividend Distributions - Edit, select from several options—full or partial dividend reinvestment, or cash payment.

Plan Administrator
For account information and administrative support, contact:

Mellon Bank, N.A. c/o Mellon Investor Services P.O. Box 3338 South Hackensack, NJ 07606-1938 www.melloninvestor.com (800) 850-3119

Initial Investment
New investors can participate in the Plan by making an initial investment in our common stock of not less than $250 and up to a maximum of $10,000 through an electronic debit or mailing a check or money order to the Plan Administrator. If you already own Southwest Water Company stock directly in your name, simply fill out the enrollment form and your participation will begin promptly after your application form is received.

Optional Cash Purchases
As a shareholder, you can buy additional shares of our common stock at any time for as little as $25 but you cannot exceed $10,000 in any month. You can send a check or a money order to the Plan Administrator or you can authorize an automatic deduction from your bank account.

Dividend Reinvestment at a Discount to Market Price
If you own 100 shares or more, you can reinvest all or a portion of your dividends. If you own fewer than 100 shares, you can reinvest all of your dividends. Reinvested dividends will be used to buy additional shares of Southwest Water Company common stock at a 5% discount from the prevailing market price. Participation in the Plan includes full investment of your funds because participants are credited with both whole and fractional shares. Dividends are paid on both whole and fractional shares.

Direct Deposit of Dividends
Should you choose not to reinvest your dividends, you can authorize the Plan Administrator to deposit your cash dividends directly into your U.S. bank account. A confirmation of the deposit will be sent to you in the mail.

Sale of Shares
You may request that all or part of your shares be sold. When your shares are sold, you will receive the proceeds from such sale less a handling charge of $15.00 and applicable brokerage trading fees.

(The viewer understands this communication does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful. The hypertext link to information about the Plan is maintained and administered by Mellon Investor Services.)