Board Declares Quarterly Dividend on Common Stock

SJW Corp. (NYSE:SJW) today reported operating revenue for the second quarter ended June 30, 2008 of $60.1 million versus $55.1 million for the same period in 2007, an increase of $5.0 million. The increase in revenue was primarily attributable to cumulative rate increases and increased demand for water.

Net income was $6.3 million for the quarter. Diluted earnings per common share were $0.34, compared to $0.29 per share for the second quarter in 2007.

Water production costs for the second quarter of 2008 were $25.6 million versus $24.1 million for the same period in 2007, an increase of $1.5 million. Higher per-unit costs for purchased water and groundwater extraction charges contributed $1.6 million to the increase and higher demand contributed $488,000. These expenses were partially offset by $589,000 which was attributable to lower spending on purchased water due to increased surface water supply compared to a year ago.

Non-water production costs for the second quarter of 2008 were $20.6 million versus $19.1 million for the same period in 2007, an increase of $1.5 million. This was attributable to increases of $441,000 in other operating expenses, $383,000 in administrative and general expenses, $312,000 in depreciation expense, $277,000 in maintenance expenses and $67,000 in other expenses. Income tax expense increased $474,000 in the second quarter to $4.3 million in 2008 from $3.8 million in 2007 as a result of higher pre-tax income.

Year-to-date operating revenue increased by $7.2 million to $101.3 million from $94.1 million in the first six months of 2007. The increase was attributable to $5.9 million in cumulative rate increases, $646,000 in increased customer demand, $450,000 from new customers, and $122,000 from other sources.

Year-to-date net income was $9.0 million, compared to $7.5 million in 2007. Diluted earnings per common share were $0.48 in the first six months of 2008, compared to $0.41 per share for the same period in 2007.

Year-to-date water production costs increased to $39.1 million from $37.9 million in 2007. The increase was primarily attributable to $2.5 million in higher costs for groundwater extraction and purchased water, offset by $1.5 million due to increased surface water supply. Non-water production costs increased $2.3 million to $40.8 million from $38.5 million. Components of the increase included $762,000 in depreciation expense, $529,000 in maintenance expenses, $503,000 in other operating expenses, $432,000 in administrative and general expenses, and $75,000 in other expenses. Income tax expense increased $854,000 year-to-date due to higher income.

The Directors of SJW Corp. today declared a quarterly dividend on common stock of $0.16125 per share. The dividend is payable on September 1, 2008 to shareholders of record on August 4, 2008.

SJW Corp. is a publicly traded holding company headquartered in San Jose, California. SJW Corp. is the parent company of San Jose Water Company, SJWTX, Inc. and SJW Land Company. Together, San Jose Water Company and SJWTX, Inc. provide regulated and nonregulated water service to more than one million people in San Jose, California and nearby communities and in Canyon Lake, Texas. SJW Land Company owns and operates commercial buildings, has a majority interest in a real estate partnership, and has properties in the states of California, Florida, Connecticut, Texas, Arizona and Tennessee.

This press release may contain certain forward-looking statements including but not limited to statements relating to SJW Corp.'s plans, strategies, objectives, expectations and intentions, which are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of SJW Corp. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The results for a quarter are not indicative of results for a full year due to seasonality. Certain factors that may cause actual results, performance or achievements to materially differ are described in SJW Corp.'s most recent reports on Form 10-K, Form 10-Q and Form 8-K filed with the Securities and Exchange Commission. SJW Corp. undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

SJW Corp.
Suzy Papazian, 408-279-7961
Corporate Secretary