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Regarding the Sandalwood Fire

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Dear South Mesa Customers and Shareholders,

I want to inform you that South Mesa Water Company’s reservoir levels are
at over 90 percent after fires erupted in Calimesa on the afternoon of
October 10th in what is being called the “Sandalwood Fire“.

We are pleased to have sufficient supplies helping firefighters to prevent the
fire from spreading in our service territory in Calimesa. South Mesa’s water
is also being used to fight the fire spreading in our neighboring supplier’s
area, the Yucaipa Valley Water District, that also serves a portion of the City
of Calimesa. We urge all our customers to conserve as much water as
possible during this time to assure that our supplies remain robust in light
of this emergency.

We have instructed our General Manager, David Armstrong, to stay in touch
with firefighting authorities to assure them of our ability to provide the water
supplies they need to do their heroic jobs during this emergency. I am sure
that we will all rise up to do our parts to assure the safety and recovery of
our friends and neighbors throughout the Calimesa area.

George Jorritsma
President of the Board
South Mesa Water Company

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