ISELIN, NJ -- (MARKET WIRE) -- 09/23/08 -- Middlesex Water Company (NASDAQ: MSEX), a provider of water and wastewater and related services in New Jersey and Delaware, has entered into agreements to own and operate water and wastewater systems for a project that is presently under construction in North Carolina. Under the terms of the agreement, the Company will provide regulated water and wastewater service to 1,500 people in the Blue Ridge Mountain Estates, a community that will include luxury single-family homes, rental villas, spa homes and commercial properties, situated in western North Carolina. Blue Ridge Mountain Estates is owned by Spring Ridge Vista LLC, whose principals are Robert Willis and Raymond Olivier. This opportunity is a significant initial step in extending the Company's geographic footprint beyond its existing service areas in New Jersey and Delaware, and is consistent with the company's strategy to expand into additional areas on the eastern seaboard.

"Our expansion into North Carolina and other states, through the relationships we continue to develop, is an important component of our growth plans," said Middlesex Water President and CEO Dennis W. Doll. "The demand for the broad range of technical and management expertise in the utility services we offer developers and municipalities remains positive, in spite of the present challenges facing our economy. We view this, and other viable opportunities, as a platform for further growth in customers, operating revenues and ultimately, shareholder value."

About Middlesex Water Company

Middlesex Water Company, organized in 1897, provides regulated and unregulated water and wastewater utility services in New Jersey and Delaware. Middlesex Water is the parent company of Tidewater Utilities, which serves more than 41,000 businesses and homes in Delaware. For additional information regarding Middlesex Water Company, visit the Company's Web site at www.middlesexwater.com or call (732) 634-1500. For information about Tidewater Utilities, visit www.tuiwater.com

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, our long-term strategy and expectations, the status of our acquisition program, the impact of our acquisitions, the impact of current and projected rate requests and the impact of our capital program on our environmental compliance. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including: general economic business conditions, unfavorable weather conditions, the success of certain cost containment initiatives, changes in regulations or regulatory treatment, availability and the cost of capital, the success of growth initiatives and other factors discussed in our filings with the Securities and Exchange Commission.

Contact:
Bernadette Sohler
Vice President -- Corporate Affairs
Middlesex Water Company
Bsohler@middlesexwater.com
1500 Ronson Road
Iselin, New Jersey  08830
www.middlesexwater.com