Water conservation, storage project contracts with Layne Christensen for well-field construction

March 8, 2010
LOS ANGELES, CA, March 8, 2010 -- Layne Christensen Company will be the preferred provider of well-field construction for the Cadiz Water Conservation & Storage Project...

• Internationally renowned firm named preferred provider in agreement with Cadiz; Believes in sustainability of the project

LOS ANGELES, CA, March 8, 2010 -- Today, Cadiz Inc. announced that following the completion of extensive field studies, Layne Christensen Company, a recognized leader in water-related drilling, installation, and maintenance services, will be its preferred provider of well-field construction for the Cadiz Water Conservation & Storage Project (the "Project"). Under an agreement between Layne Christensen and Cadiz, Layne Christensen will have the right of first refusal on well-field construction for the Project. One of Layne Christensen's largest offices in the United States is located in Fontana in San Bernardino County, California. From its Fontana office, Layne Christensen can provide water well infrastructure and labor for the Project. Cadiz plans to conserve up to 50,000 acre-feet of water per year and to store and recover potentially one million acre-feet of water as part of the Project.

Layne Christensen has made a significant commitment to the Project to obtain its preferred status. Through the agreement with Layne, Cadiz intends for Layne Christensen to construct a multi-million dollar well field. Under such an agreement, Layne Christensen can drill and maintain the wells, install pumping equipment, and perform other related repair and maintenance services. Named by DeMarche Associates as one of America's best companies and in business for over a century, Layne Christensen will bring to the Project expertise and high standards rivaled by none.

The announcement of the Layne Christensen agreement comes on the heels of the completion of a year-long study by the internationally respected environmental firm CH2M Hill confirming an underground water supply in the Cadiz project area of eastern San Bernardino County that is among the largest groundwater basins in California. The aquifer system's deep, underground waters are naturally replenishing by watersheds spanning more than 1,300 square miles. As part of the study's peer review process, Layne Christensen led water drilling exploration that involved drilling two test wells and two additional bore holes to depths of 1,000 to 2,000 feet. Extensive pump testing confirmed the presence of a deep and dynamic aquifer system with the water table extending to depths of nearly 2,000 feet beneath the valley floor.

The agreement represents the first step by Cadiz in furtherance of its commitment to use "best in class" professionals to assist with project development and ongoing project management and to hire locally wherever possible.

"We are very pleased to partner with Cadiz on their Water Conservation & Storage Project," said Greg Aluce, President of Layne Christensen's worldwide Water Division. "I haven't seen our people this excited about a project in a long time -- the opportunity to add to southern California's resources and create jobs is a rare one, and we look forward to being a part of it."

Based on the CH2M Hill study of natural recharge in the aquifer system, Cadiz is developing a groundwater management plan providing for the safe and environmentally-sound, long-term withdrawal of enough clean water to sustainably meet the annual needs of 400,000 residents in drought-ridden southern California. CH2M Hill's evaluation was prepared in advance of an upcoming environmental review of the Project under the California Environmental Quality Act.

"This aquifer system is without a doubt one of Southern California's most prolific, untapped, renewable water resources, and we are delighted to be a part of the Cadiz Water Conservation & Storage Project," said Bob Ereth, General Manager of Layne Christensen. "After a lifetime of work in the field, I have never seen test wells this productive, and it is clear that this resource, responsibly managed, can be a significant piece of southern California's long-term resource puzzle."

"We are proud to have local resources meeting local water needs while providing local jobs for Southern California workers," said Scott Slater, General Counsel for Cadiz. "We look forward to a lasting partnership with the recognized leader in the field of groundwater management and well-field operations."

About Cadiz
Founded in 1983, Cadiz is a publicly-held, renewable resources company that owns 70 square miles of property with significant water resources and clean energy potential in eastern San Bernardino County, California. The Company is engaged in a combination of organic farming, solar energy and water storage projects. The Cadiz Water Conservation & Storage Project aims to provide much-needed water to Californians while preserving the desert ecology. Further information can be obtained by visiting www.cadizinc.com.


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