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## DIVIDEND INCREASE 

## OUR VISION 

After carefully considering 2002 operating results and the outlook for the future, on January 29, 2003, our Board of Directors increased the dividend for the 36th consecutive year to $1.125 per share. Our stockhold- ers place great value on dividends, and 2002 marked the 58th consecutive year that we have paid a dividend. 

In the coming year, we will continue to execute the strategy that resulted in improved performance in 2002. We will pursue strategic growth opportunities in the western United States; we will proactively seek fair and timely rate relief; and we will maintain discipline in our fiscal management. Most importantly, we will continue to transact all of our business prudently, forthrightly, and with integrity. 

We invite you to read on to see how our Vision, Value, Quality, and Commitment make us the refreshingly clear choice–not just for investors, but for customers and employees as well. In our view, financial per- formance is but one of the measures of our success in 2002. 

We look forward to achieving even better results in the com- ing years, and we thank you for your continued investment in the California Water Service Group. 

Sincerely, 

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