[GRAPHIC OMITTED]                  NEWS RELEASE                 [OBJECT OMITTED]

             CALIFORNIA WATER SERVICE GROUP

             1720 North First Street
             San Jose, CA 95112-4598                                    00 GO 12
                                                                    May 25, 2000
                                                           For Immediate Release

Contact:     Gerry Feeney (408) 367-8216 (analysts)
             Jim Good (408) 367-8219 (media)


                      CAL WATER - DOMINGUEZ COMPLETE MERGER


SAN JOSE, CA (May 25, 2000) -- California  Water  Service Group  (NYSE:CWT)  and
Dominguez  Services  Corporation today completed the merger of the two companies
after receiving California Public Utilities Commission approval last week.

         Per the terms of the  merger  agreement,  Dominguez  shareholders  will
receive  1.38 Cal Water  common  shares for each  Dominguez  common share owned.
Dominguez  shareholders will be mailed instructions  regarding stock certificate
exchange procedures in approximately ten days.

         "This transaction has taken a long time to complete, but we are just as
confident  today  as we were  in  November  1998,  when  the  merger  was  first
announced, that it will result in significant benefits to our stockholders,  our
customers and our employees," said Cal Water Chairman Robert W. Foy.

         The merger with Dominguez adds about 40,000 new customers to Cal Water.
Dominguez'  primary operations serve about 32,000 accounts in the South Bay area
of Los Angeles County adjacent to Cal Water's  Hermosa-Redondo  and Palos Verdes
districts.  Other Dominguez operations include 5,500 customers in the Kern River
and Antelope Valley areas near Cal Water's  Bakersfield  district and in an area
north of San  Francisco  serving  about 2,000  customers.  Dominguez  also has a
successful water rights brokerage  business in the Los Angeles area. At December
31, 1999,



Dominguez  had  total  assets  of  $57,889,000  and  recorded  1999  revenue  of
$28,497,000.

         "A transition  team made up of both Cal Water and  Dominguez  personnel
has been  planning for the  integration  of the  companies for some time. We are
pleased to finally  welcome the Dominguez  employees  into our ranks.  Together,
we'll  continue  to  provide  the high level of service  the  customers  of both
companies  have come to  expect,"  said  Peter C.  Nelson,  President  and Chief
Executive Officer of Cal Water.

         California  Water  Service  Group is the parent  company of  California
Water Service Company,  CWS Utility  Services,  New Mexico Water Service Company
and Washington Water Service Company. Together these companies provide regulated
and  non-regulated  water  utility  services  to over 1.8  million  people in 83
California, New Mexico and Washington communities.

         This news release  contains  forward-looking  statements that are based
upon current information and expectations. Actual results may differ materially.

         Additional    information   is   available   on   our   Web   site   at
www.calwater.com.