Net income was $8.3 million for the quarter compared to $8.0 million for the same quarter in 2007. Diluted earnings per common share were $0.44, compared to $0.43 per share for the same quarter in 2007.

Water production costs for the third quarter of 2008 were $30.8 million versus $29.6 million for the same period in 2007, an increase of $1.3 million. Higher per-unit costs for purchased water and groundwater extraction charges contributed $2.2 million to the increase. These expenses were significantly offset by lower spending on purchased water due to increased surface water supply compared to a year ago.

Non-water production costs for the third quarter of 2008 were $21.7 million versus $19.4 million for the same period in 2007, an increase of $2.3 million. This was attributable to increases of $747,000 in administrative and general expenses, $619,000 in other operating expenses, $477,000 in maintenance expenses, $298,000 in depreciation and amortization and $180,000 in property and other non-income taxes. Income tax expense increased $338,000 in the third quarter to $5.5 million in 2008 from $5.2 million in 2007 as a result of higher pre-tax income.

Year-to-date operating revenue increased by $11.8 million to $170.8 million from $159.0 million in the first nine months of 2007. The increase was attributable to $10.4 million in cumulative rate increases, $831,000 in increased usage, $432,000 from new customers, and $144,000 from other sources.

Year-to-date net income was $17.3 million, compared to $15.5 million in 2007. Diluted earnings per common share were $0.93 in the first nine months of 2008, compared to $0.84 per share for the same period in 2007.

Year-to-date water production costs increased to $69.9 million from $67.5 million in 2007. The increase was primarily attributable to $4.7 million in higher costs for groundwater extraction and purchased water, partially offset by $1.9 million saved due to increased surface water supply. Non-water production costs increased $4.6 million to $62.5 million from $57.9 million. Components of the increase included $1.2 million in administrative and general expenses, $1.1 million in other operating expenses, $1.0 million in maintenance expenses, $1.0 million in depreciation and amortization expense and $255,000 in property and other non-income taxes. Income tax expense increased $1.2 million year-to-date due to higher pre-tax income.

The Directors of SJW Corp. today declared a quarterly dividend on common stock of $0.16125 per share. The dividend is payable on December 1, 2008 to shareholders of record on November 3, 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 and nearby communities.