RCC Holdings Corp

I s s u e 1, A p r i l 1 5, 2 0 09

Company Introduction

RCC Holdings, Corp. (OTCBB:PK RCCH) through acquisitions offers consult-

Granada Capital Group ing, financing and overall business structure in the public and private equity sectors.
RCC Holdings, Corp. specializes in finding undervalued small cap and microcap
2544 Collier Avenue companies with exciting products, services or technology that are poised for signifi-
San Diego, CA 92116
cant growth. RCC Holdings Corp. provides these companies with guidance and
Phone: (619) 543-0328 strategic counseling to help them succeed. RCC Holdings Corp. is currently in ne-
Fax: (619) 297-3464 gotiations with several companies which meet these criteria.
Email: info@granadacapital.com
Website: www.granadacapital.com RCC International Wastewater Systems is a wastewater treatment company
based in Kissimmee, FL and is a sole subsidiary of RCC Holdings Corporation.

IWS is a Solutions Company. It specializes in taking the developer through all the
RCC Holdings Corp necessary phases, from design, to city, county and state meetings, through the ap-
proval process, and then through installation and operation of the system. To date,
Public Company Info: International Wastewater Systems has completed 13 systems in Idaho and 7 systems in
Ticker: RCCH Montana, along with new projects currently submitted for state approval. IWS em-
Industry: Water Utilities phasizes strong planning and coordination in design, installation and opera-
Sector: Utilities tion. Each project is carefully analyzed to clearly identify the true costs of the entire
Fiscal Year: 9/30 project. Too often, the developer receives a wastewater treatment quote, but is not
Address: PO Box 420122
fully aware of engineering, construction, power, startup and other requirements that
Kissimmee, FL 34742-0122
Contact: Phone: (407) 319-2029 are necessary to complete the plant. In summary, IWS views its responsibility to
Fax: (909) 483-6501 educate the developer as much as possible to give the highest level of assurance that
Website: www.rccholdings.com the system goes in, on time and within budget.

RCC Holdings, Corp. has completed its 2009 strategic planning meeting, attempting
to update its path in light of the changing economic conditions and experience it
has gained over the last year and a half. Based on the result of this planning, it has
directed its management team to focus on future acquisitions/partnerships that:
Inside This Report:
 Provide remote or rural operational capability
 Company News
 Company Profile  Are participating in environmental, energy, or
communications related business sectors
 Industry Overview
 Develop relationships with Universities across
 Competitive Analysis the United States allowing earlier business
stage opportunities

This does not preclude other sectors if the opportunity arises, but it does direct the
Sign Up for FREE Research company into areas that the company believes it has particular strengths in manage-
Reports! ment, relationships and understanding. Future business relationships will not be
limited to the continental United States, and in fact, RCC anticipates that opportu-
nities will emerge that will allow RCC to participate in business outside the U.S.,
Sign Up Now some of which it has already begun preliminary work on.
 RCC Holdings Corp.

Company Headlines

Tuesday, April 7, 2009

RCC Plans for Positive Growth in Adverse Economy
Thursday, February 5, 2009
RCC Clarifies Previous Release

Wednesday, February 4, 2009

Announcement

Friday, January 30, 2009

RCC Announces Key Board and Financial Positions

Wednesday, December 10, 2008

RCC Holdings Corp Announces New International Environmental Partner

Thursday, May 15, 2008

RCC Plans Move to International Exchange

Thursday, April 10, 2008

RCC Upgrades Sales Projections

Tuesday, April 8, 2008

RCC Holdings Corp CEO Proudly Announces Partnership with ''CPIC''

Friday, April 4, 2008

BenchmarkJournal.com Sector Analysis for HDLM, RCCH, DIOM and GW

Thursday, March 27, 2008

RCC Holdings Announces Final Washington EPA Science Fair Approval

Wednesday, March 26, 2008

Gene Newton, CEO of RCC Holdings Corp Creates Personal Wall on Wallst.net's Financial

Thursday, March 20, 2008

RCC Holdings Corp. CEO Announces Projected Revenues

Wednesday, March 19, 2008

Featured Stocks on Today's Edition of WallSt.Net's 3-Minute Press Show: RCCH

Tuesday, March 18, 2008

RCC Begins Work on Two Hundred Million Dollar Wastewater Treatment Plant in North Carolina

Tuesday, March 11, 2008

RCC Announces Large Wastewater Treatment System Relationship

Granada Capital Group Initial Report Page 2

 RCC Holdings Corp.
Table of Contents
Company Headlines………………………………………………………………………………… 2
Company Overview…………………………………………………………………………………. 4
International Wastewater Systems…………………………………………………….......... 4
RCCIWS Operations………………………………………………………………………...……… 5
Comminution Chamber………………………………………………………………........ 5
Aeration Chamber………………………………………………………………………… 5
Contact Clarifier Chamber……………………………………………………………......... 5
System Controls…………………………………………………………………………… 6
Electronics Control Panel…………………………………………………………………. 6
Process of Producing Reclaimed Water……………………………………………………. 7
RCCIWS Projects…………………………………………………………………………………… 8
Active Sites………………………………………………………………………………... 8
Case Studies……………………………………………………………………………… 8
Industry Analysis……………………………………………………………………………………. 9
Organization and Structure……………………………………………………………........ 9
Types of Organizations……………………………………………………………………. 10
Current Conditions………………………………………………………………………... 10
Government Relations…………………………………………………………………...... 11
Interface with State Environmental Regulatory Agency………………………………….. 11
U.S. Water Utilities Industry Highlights…………………………………………………… 12
U.S. Water Utilities Industry Segmentation………………………………………………... 12
Competitive Landscape……………………………………………………………………………... 13
Workforce at a Glance…………………………………………………………………...... 13
RCCWIS Peer Analysis……………………………………………………………………………... 14
Water Utilities Industry Snapshot…………………………………………………………. 14
RCCIWS Peer Group……………………………………………………………………... 14
Disclaimer…………………………………………………………………………………………... 16

Exhibits

Engineered Sequencing Batch Reactor (SBR) Tank………………………………………………… 5

Process of Producing Reclaimed Water……………………………………………………………... 7
Capital Investment Needed to Control Wastewater Pollution in U.S. for Next 20 yrs……………….. 11
United States Water Utilities Industry Value: $ billion, 2002-2006…………………………………... 12
U.S. Water Utilities Industry Segmentation………………………………………………………….. 12
Water Utilities Industry Snapshot…………………………………………………………………… 14
RCCIWS Peer Group……………………………………………………………………………….. 14

Granada Capital Group Initial Report Page 3

 RCC Holdings Corp.
Company Overview
RCC Holdings, Corp. (OTCBB:PK RCCH) through acquisitions offers consulting, financing and overall
business structure in the public and private equity sectors. RCC Holdings, Corp. specializes in finding un-
dervalued small cap and microcap companies with exciting products, services or technology that are poised
for explosive growth. RCC Holdings Corp. provides these companies with guidance and strategic counseling
to help them succeed. RCC Holdings Corp. is currently in negotiations with several companies which meet
these criteria.

RCC International Wastewater Systems, a wastewater treatment company based in Kissimmee, FL, is a sole
subsidiary of RCC Holdings Corporation.

International Wastewater Systems

RCC International Wastewater Systems, Inc. (“IWS”), formerly International Waste-

water Systems was formed in 1993 in response to the wastewater treatment challenge
posed by the enactment of the stricter water quality laws implemented in the
1980's. International Wastewater Systems set as a goal the development of wastewa-
ter treatment technologies that would significantly surpass the standards enacted by
those laws, thereby not only preserving, but improving water quality.

Each development is unique and with water reclamation a goal for many states, the wastewater treatment
system design takes on many issues. Some of the treatment units are combined with filtration and disinfec-
tion equipment to provide reclaimed water that meets 1993 drinking water standards for safety and pu-
rity. The company’s current projects use the system effluent in conventional drain fields, storage for fire
protection, for irrigation along medians, and discharge directly into a lake or creek for unrestricted irrigation.

Although aerobic treatment systems have been used since the early 1900's, the advent of reliable control
systems and other technology has significantly changed their operational reliability. IWS now manufactures
sequencing batch reactor systems that can handle small to medium size communities. These systems boast a
small footprint, comprising of entrenched fiberglass tanks and a small control building immediately adjacent
to the tank bed area.

IWS is a Solutions Company. It specializes in taking the developer through all the necessary phases, from
design, to city, county and state meetings, through the approval process, and then through installation and
operation of the system. To date, International Wastewater Systems has completed 13 systems in Idaho and 7
systems in Montana, along with new projects currently submitted for state approval. IWS emphasizes
strong planning and coordination in design, installation and operation. Each project is carefully analyzed to
clearly identify the true costs of the entire project. Too often, the developer receives a wastewater treatment
quote, but is not fully aware of engineering, construction, power, startup and other requirements that are
necessary to complete the plant. In summary, IWS views its responsibility to educate the developer as much
as possible to give the highest level of assurance that the system goes in, on time and within budget.

Newer IWS projects include aiding larger cities in decentralizing their systems with smaller, more cost-
effective ways to fix obsolete and failing systems. Also included in the IWS workload are projects in South
America and Eastern Europe, where newer technology is required to serve emerging countries’ needs. Illi-
nois-based Lakeside Equipment Company has also provided a higher end capability for IWS, allowing IWS
to compete on projects that require up to millions of gallons per day in processing capability.

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 RCC Holdings Corp.
RCCIWS Operations
Engineered Sequencing Batch Reactor (SBR) Tank

Comminution Chamber

The first chamber of the SBR is a comminution or solids break-up area. All incoming sewage enters this
compartment and is broken up through a process of aeration and circulation by pumps (1) and (2) located in
the Aeration Chamber. The divider separating the Comminution and Aeration Chambers is a fiberglass
frame supporting plumbing pipes and, in the lower half of the tank, a non corrosive screen that prevents
foreign objects from continuing through the treatment system.

Aeration Chamber Contact Clarifier Chamber

The Aeration Chambers are located in the second
section of tank 1 and the first section of tank 2. In
these chambers, the mixed liquor is alternately
mixed with and then deprived of oxygen. This pro-
cedure accelerates the removal of nitrogen from the
sewage being treated. Three pumps are located in
each Aeration Chamber. Pumps 1 and 2 provide
the main aeration for the treatment process by
drawing in outside air and mixing it with the liquor
circulating against the retention screen. Aeration
pumps 3 and 4 transfer the mixed liquor between
the two aeration chambers, also using venture aspi-
rators to pull air into the liquor mixture. Pumps 5
and 6 transfer liquid to the clarifier chamber. Dur-
ing this transfer stage, mixed liquor is drawn from
the Aeration Chamber by either pump 5 or 6 and
moved to the Contact Clarifier Chamber causing
the contents of the Contact Clarifier Chamber to
overflow through weirs located at the top of the
baffle separating these two chambers. This allows
the scum that rises to the top of the liquor being
pumped into the Contact Clarifier Chamber to flow
back into the Aeration Chamber and provides for
additional aeration.
The function of the Contact Clarifier Chamber is to
provide an area where the mixed liquor that has
been processed in the Aeration Chamber can be
allowed to have a quiet settling time to allow par-
ticulate to settle. A normal batch cycle consists of
two settling periods. The first happens immediately
after the transfer of liquor from the aeration cham-
ber to the clarification chamber is halted. Subse-
quent to this settling period, pumps (7 or 8), two of
four pumps in the Clarifier Chamber, transfer the
settled particulate from the lower section of the
contact clarifier chamber back to the Aeration
Chamber. After another period of settling, the
clarified effluent is transferred to the next treatment
phase by either pump 9 or10. Pumps 9 and 10 pro-
vide an identical discharge, but alternate in use
every other discharge cycle. The next phase of
treatment is dependent on the design of the sys-
tem. Effluent may be passed to a disinfection sys-
tem, a soil absorption system or some combination
thereof. Properly treated effluent can also be recy-
cled for uses such as irrigation or fire suppression.

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 RCC Holdings Corp.

RCCIWS Operations
System Controls
An integrated system of controls and data collection devices allow a International Wastewater Systems SBR
to operate at peak performance, adjust to abnormal flows and conditions, provide statistical information for
reporting and monitoring, and send alarms when operator intervention is required to their people operating
and monitoring the system. These controls consist of an Electronics Control Panel, floats and sensors in-
stalled in the SBR chambers and piping, as well as electronic and manual valves to control the flow of the
sewage being treated and the air being induced into the treatment process.

Electronics Control Panel

The Electronics Control Panel houses a Programmable Logic Controller (PLC), relays, a modem, phone
line, phone dialer, circuit breakers, and associated electrical wiring. It can also be connected, communica-
tions-wise, via the Internet. The PLC provides for the master control of the SBR. It contains a computer
program which has been written by International Wastewater Systems, Inc. and adapted to the site specific
conditions relative to the SBR being controlled. The PLC, in conjunction with the program, implements the
design parameters for the operation of the system, and provides for adjustment of those parameters based
upon information it receives from the floats and sensors within the system. It also records data relating to
the operation of pumps, floats, and sensors for transfer to the International Wastewater Systems, Inc. exter-
nal monitoring site.

The PLC communicates with the outside world by way of the modem and phone line installed in the Elec-
tronics Control Panel. Using this phone connection in conjunction with the phone dialer, the PLC notifies
those maintaining the system of abnormal operating conditions and alarm conditions that may require op-
erator intervention. Maintenance personnel can initiate communication with the PLC by dialing the phone
number associated with the phone line in the Electronics Control Panel. Once in contact with the PLC,
maintenance personnel can observe the operation of the SBR in real time, make adjustments to the program
controlling the operation of the SBR, download statistical information that the PLC has collected relative to
the operation of the SBR, or go to a manual control mode that allows the operator in a remote location to
control the pumps and electronic valves in the SBR

Limited Space Required. The Springhill Park wastewater treatment

system shown to the left demonstrates the foot print required for a
15,000 gallon per day plant (~50 homes). The operation is completely
odor free.

During RCCIWS’ start up of the first community system, Springhill Park

Subdivision-Bozeman, Montana, they were able to have a third party pro-
vide the testing. The results of this testing added credibility to their re-
sults. The study was funded through the Drinking Water Assistance Pro-
gram at Montana State University in Bozeman, Montana. .

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 RCC Holdings Corp.

RCCIWS Operations
Process of Producing Reclaimed Water

This step utilizes a International Wastewater System (IWS) Se-

quencing Batch Reactor. This system is a “miniature” municipal
Step 1: Primary wastewater treatment system scaled to fit inside a small multi-
and Secondary chamber fiberglass tank. The wastewater stream is sequentially
Treatment passed through a series of computer controlled batch processes to
breakdown the solids, remove impurities and ready the effluent for
discharge.

During this step the SBR effluent is injected with a small amount of
Step 2: coagulant, in this case polyaluminum chloride (PAC). The fluid is
Coagulation then passed through a static mixer. This process causes particles to
flock together in preparation for the filter.

A dynamic bed sand filter system treats the coagulated efflu-

Step 3: ent. The filtration process further reduces the levels of impurities in
Filtration the water, normally yielding 24-hour averages of 2 NTU or less.

The liquid leaving the filter is then monitored by a turbidity meter

Step 4: and if the effluent meets its high standard of clarity it is then di-
Disinfection rected through two ultraviolet units for disinfection. The UV units
provide pathogen kills to meet standards for reclaimed water.

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 RCC Holdings Corp.
RCCIWS Projects
Active Sites

Idaho
 Moon Lake Ranch Subdivision - Eagle, ID
 Danskin Ridge Subdivision - Meridian, ID
 Callaway Ranch - Eagle, ID
 Holy Apostle - Meridan, ID
 Liberty Charter School - Nampa, ID
 Middleton Elementary - Middleton, ID
 Trellis Subdivision, River Birch Golf Course and Eagle Knoll Winery - Star, ID
 Jug Mountain Ranch Subdivision and Golf Course - Lakefork, ID
 Elk Valley Golf Course and subdivision - Featherville, ID
 Stonebriar Subdivisions - Start, ID
 Garden Valley, ID

Montana
 Springhill Subdivision - Bozeman, MT
 Comfort Inn - Big Sky, MT
 Everybody's Gym - Belgrade, MT
 PPL Madison Hydroelectric Dam - Ennis, MT
 PPL Hauser Hydroelectric Dam - Helena, MT
 Valley Grove Subdivision - Bozeman, MT
 East Gallatin Commercial Center - Bozeman, MT

Case Studies

Jug Mountain - Jug Mountain was the first golf course project that IWS undertook. Reclaimed water was
used for the golf course, with the standards in nitrogen, again being very stringent. In addition, an NPDES
permit was required for this upscale course community, requiring special reporting to the US EPA, in addi-
tion to the normal Idaho State Government reporting.

Moon Lake - Moon Lake Ranch was one of the earliest WS systems and led the way for others. It is an
upscale subdivision located in Eagle, Idaho, with very tight nitrogen standards required. In addition, this
was the system used by the EPS's ETV program, in conjunction with NSF and Eagle County, to verify the
IWS technology. That report was published in 2006

Valley Grove Subdivision - Valley Grove is another early IWS project, built in Bozeman, Montana. This
project supports well over 100 homes and operates at extremely low nitrogen removal levels. It is one of
the larger IWS configurations in existence, and has been successfully operating for nearly 8 years.

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 RCC Holdings Corp.
Industry Analysis

Wastewater management became big business with federal amendments to the Safe Drinking Water Act
(SDWA) of 1996 and the Clean Water Action Plan of 1998 putting new life and new money into environ-
mental protection. Even with calls for greater federal spending in wastewater management through the first
decade of the twenty-first century, however, local governments and their ratepayers covered more than 90
percent of the costs to build, operate and maintain public water and sewer systems in the mid- to late 2000s.

In the mid-2000s the U.S. wastewater infrastructure was aging and often inadequate to handle the needs of
growing populations. When it rained, many sewer systems were overwhelmed, and wastewater spilled di-
rectly into rivers and lakes. The Environmental Protection Agency (EPA) continued to implement regula-
tions regarding the amount of sewerage that overflowed into the U.S. water supply. As municipalities
worked to meet the EPA's expectations, all were looking at the huge price tag of repairing or replacing fail-
ing sewage infrastructures. A report the EPA delivered to Congress in January 2008 based on information
from the 2004 Clean Watersheds Needs Survey estimated that $202.5 billion in capital investment was
needed nationwide to control wastewater pollution for up to 20 years.

Organization and Structure

Organizations in the wastewater industry are responsible for collecting wastewater from homes, businesses,
and institutions, for treating wastewater to acceptable standards before discharging it into a waterway, and
for disposing of residues called sludge. These activities entail building, operating, and maintaining a trans-
port system and constructing and operating primary treatment facilities that remove or dilute toxins, syn-
thetic debris, human waste, and other refuse.

Wastewater managers are expected to devise a system that transports wastewater as much as possible by
gravity and that offers almost no threat of disruption in flow or service. Managers must also ensure that
wastes do not seep into water supplies and that plant effluents are treated in a manner that does not signifi-
cantly harm the environment. In accomplishing their duties, managers must comply with numerous state
and federal regulations, financial restrictions, and political pressures. In addition, wastewater managers are
often charged with developing resource recovery programs.

The majority of wastewater treatment plants consist of holding reservoirs that contain, chemically treat, and
aerate wastewater until pollutants have settled out and the water can be safely jettisoned into a natural water-
way. A few treatment plants use other systems. Approximately 300 municipal and industrial artificial marsh-
land wastewater treatment systems were in operation across the country in the late 1990s. These marshes use
plants and microorganisms to absorb and biodegrade the organics.

The two main sources of wastewater are residential and industrial. The large majority of residential wastewa-
ter is discharged into local sewer systems and treated by local utilities or publicly owned treatment works
(POTWs). According to the EPA, in the mid-2000s there were about 16,000 POTWs across the nation,
serving about 70 percent of the population, or 200 million people. The infrastructure also included an esti-
mated 100,000 major pumping stations, 600,000 miles of sanitary sewers, 200,000 miles of storm sewers.
POTWs treated more than 32 billion gallons of wastewater every day. POTWs range widely in size, with
daily treatments capabilities from less than 100,000 gallons to more than 500 million gallons. About 80 per-
cent of all POTWs treat less than one million gallons per day, but the remaining 20 percent of the largest
systems serve 89 percent of the population.

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 RCC Holdings Corp.
Industry Analysis
Types of Organizations
Most organizations that provide wastewater treatment services are publicly owned and operated as nonprofit
entities. They may be established under a variety of organizational structures. A regional wastewater author-
ity, for example, provides service either directly or through governmental entities such as cities, townships,
water and sanitation districts, and counties. The regional authority may provide direct service and billing to
individual customers, or it might offer wholesale service to several governmental entities that would in turn
provide service and billing to local customers.

Large centralized treatment facilities, such as regional authorities, benefit from economies of scale. The
drawback of this type of arrangement, however, is that centralized facilities often require pumping of waste-
water over long distances. As a result, they tend to be less energy efficient and produce greater amounts of
residue in a concentrated area than satellite (or local) treatment plants. Municipal special service districts,
which represent a more localized wastewater organizational structure, avoid these drawbacks. Localized utili-
ties, however, often have higher costs and lack capital for investment in new technology.

In addition to POTWs, some wastewater treatment facilities are operated by private companies that have a
profit motive. These companies bid to either own or manage the wastewater plants or a portion of the op-
eration for a set period of time. The private company's incentives for providing quality service are profit and
the hope of winning the bid again when the contract ends. The private companies also inject private capital
into the operation, which frees the community's capital for other uses.

Current Conditions

The House Transportation and Infrastructure Committee, concurring with many other environmental, in-
dustry, and advocacy groups, stated in 2005: "Without increased investment in wastewater infrastructure, in
less than a generation, the U.S. could lose much of the gains it made thus far in improving water quality, and
wind up with dirtier water than existed prior to the enactment of the 1972 Clean Water Act."

According to the Water Infrastructure Network, local fees and taxes accounted for about $60 billion in op-
erating revenues. The main source of federal funding is the Clean Water Act State Revolving Loan Fund
(SRF), which helped local communities repair and replace clean water infrastructures since it was created in
1987.

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 RCC Holdings Corp.
Industry Analysis

The EPA's $202.5 billion estimate for capital investment needed to control wastewater pollution in the
United States for the next 20 years included $134.4 billion for wastewater treatment and collection systems,
$54.8 billion for combined sewer overflow corrections, and $9 billion for stormwater management. In the
mid-2000s federal funding for drinking water remained level at $850 million annually. The projected annual
shortfall to replace and improve aging drinking water facilities was more than $11 billion.

Capital Investment Needed to Control Wastewater Pollution in U.S. for

Next 20 yrs.

Stormwater
Management - $9
Billion
Combined Sewer (4%)
Overflow
Corrections - $56.9
Billlion
(28%)

Wastewater
Treatment and
Collection Systems -
$136.6 Billion
(68%)
Source: EPA

Government Relations
It is vital for a Wastewater Treatment supplier to provide necessary functions to prospective customers and
to have a proven track record of achievement in those areas.

Interface with the State Environmental Regulatory Agency

IWS will provide full consultation including chairing customer meetings that provide the future IWS cus-
tomer the very best hearing on setting parameters for compliance and working out favorable schedules for
its customers. As part of the company’s service, they provide this as a necessary function, without which the
system, no matter how good, may always be subject to compliance issues. IWS has a proven track record of
providing exceptional consultation services on these issues, putting the customer “First”.

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 RCC Holdings Corp.
Industry Analysis
U.S. Water Utilities Industry Highlights
The United States water utilities industry generated total revenues of $125.3 billion in 2006, this representing
a compound annual growth rate (CAGR) of 4.2% for the period spanning 2002-2006.

Industry consumption volumes increased with a CAGR of 0.1% between 2002-2006, to reach a total of
483.1 cubic kilometers per year in 2006.

The performance of the industry is forecast to accelerate, with an anticipated CAGR of 4.2% for the 2006-
2011 period expected to drive the industry to a value of $154.3 billion by the end of 2011.

United States Water Utilities Industry Value: $ billion, 2002-2006

130 $125.30
125 $120.30
120 $115.80
$Dollars Billion

115 $110.70
110 $106.50
105
100
95
2002 2003 2004 2005 2006
Year

U.S. Water Utilities Industry Agriculture

Industrial
Segmentation 24.3%
35.5%

The domestic segment was the United States

industry's most lucrative in 2006, generating
total revenues of $50.4 billion, equivalent to
40.2% of the industry's overall value. The in-
dustrial segment contributed revenues of $44.5
billion in 2006, equating to 35.5% of the indus-
try's aggregate revenues.
Domestic
40.2%

Source: Datamonitor

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 RCC Holdings Corp.
Competetive Landscape

The following are some of the major players in the water utilities industry:

Veolia Water North America Operating Services, Inc. (which changed its
name from USFilter Operating Services in 2003), based on Houston, Texas,
is the leading operator of water and wastewater services. Owned by French
conglomerate Veolia Environment SA, Veolia Water North America serves
about 115 industrial facilities in addition to 600 communities in the United
States, typically through public-private partnerships.

American Water Works Company, owned by Germany's utility giant

RWE's water unit, Thames Water, is one of the largest U.S. water utility
holding companies. Along with providing water utilities in thirty-two states,
it also operates wastewater treatment facilities in some areas. The company
reported revenues of $2.1 billion in 2006.

United Water, Inc. (formerly United Water Resources), of Harrington Park,

New Jersey, provides water and wastewater treatment services to approxi-
mately seven million people. The company, owned by French utilities giant
SUEZ S.A., manages utilities in twenty states in the U.S.

One of the largest publicly owned and operated wastewater utilities in the
United States is the Hyperion treatment facility, the largest of four waste-
water plants in Los Angeles, California. The plant can handle 450 million
gallons of wastewater per day and is unique in that it burns its sludge resi-
due to help produce the energy that operates the plant. It services more
than two-thirds of Los Angeles.

Workforce at a Glance

Workers in the wastewater treatment industry are typically employed by POTWs, engineering and construc-
tion companies that build and improve facilities, or consulting firms. The industry hires a disproportionate
share of engineers and chemists. Consultants typically provide services such as hydraulic analysis and model-
ing, feasibility and financial studies, design and specifications for construction, lab services, resource recov-
ery, hazardous waste management, and environmental litigation. According to the U.S Bureau of Labor Sta-
tistics (BLS), water and wastewater treatment plant and system operators held about 111,000 jobs in 2006,
with almost four in five operators working for local governments. The median annual salary was just more
than $36,000.

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 RCC Holdings Corp.
RCCIWS Peer Analysis

Water Utilities Industry Snapshot

Div. Net Profit Price To

Description Market Cap P/E ROE %
Yield % Margin (mrq) FCF (mrq)

Utilities 505.16B 11.455 12.374 4.881 7.335 -12.422

Water Utilities 8.34B 0 0 3.528 -7.7 -9.7

13 Water Utilities Companies in RCCIWS’ Peer Group

Div. Net Profit Price To

Company Market Cap P/E ROE %
Yield % Margin (mrq) FCF (mrq)

American States Water Company 607.17M 27.825 7.184 2.9 3.404 -32.614

American Water Works Company 2.92B NA -13.013 4.4 6.403 -17.109

Aqua America Inc. 2.58B 26.19 9.625 2.8 16.057 -102.783

Artesian Resources Corp. 107.27M 16.748 7.423 4.9 9.034 -110.858

Basin Water Inc. 10.22M NA -55.308 NA -225.832 -3.607

California Water Service Group 796.01M 20.195 10.05 3.1 7.31 -32.825

Cascal N V 82.22M 4.088 23.966 6.7 15.62 -7.335

Connecticut Water Service Inc. 182.91M 19.524 9.189 4.1 13.203 156.737

Middlesex Water Co. 197.94M 16.517 8.773 4.8 8.951 -85.392

Pennichuck Corp. 91.77M 19.494 10.115 3.2 6.695 -36.448

SJW Corp. 490.61M 23.044 8.737 2.5 8.496 -52.611

Southwest Water Co. 133.78M NA -4.704 1.8 -1.379 -20.482

York Water Co. 147.85M 22.847 9.386 3.9 22.069 -17.036

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 RCC Holdings Corp.

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 RCC Holdings Corp.

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ranted by Granada Capital Consulting, Inc. (GCC) as to accuracy or completeness. GCC firm is not a member of any association for other research
providers. There may be instances when fundamental, technical and quantitative opinions contained in the reports are not in concert. Under no
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 RCC Holdings Corp.
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 RCC Holdings Corp.
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