Basin Water, WESA reach agreement for mining water treatment system

• New contract is first large-scale mining water treatment project for the company

RANCHO CUCAMONGA, CA, May 20, 2008 -- Basin Water Inc. announced the execution of an agreement with Water & Earth Science Associates Ltd. (WESA) (Toronto) to provide process design and equipment for mining water treatment at a site in northeastern Ontario, Canada. This agreement represents Basin Water's first large order in the industrial market following the acquisition and integration of Mobile Process Technologies, Co. last year.

According to Michael M. Stark, President and Chief Executive Officer of Basin Water, the WESA agreement signals progress in Basin Water's strategy to bring a new dimension of water treatment technology, expertise and service to the industrial sector.

"Our acquisition of Mobile Process Technologies, Co. (MPT) in September 2007 gave us a substantial platform from which to offer advanced technology+services solutions to the industrial market," Stark said. "Our agreement with WESA represents Basin Water's first major project in the mining water treatment market -- an industry that we believe our technology and expertise will allow us to serve particularly well. Basin Water now has the resources in place to deliver water treatment solutions to the mining industry and other industrial sectors. As in our municipal business, we will be offering our industrial customers superior technology and a proven pay-for-performance business model that provides them with guaranteed results at low lifecycle costs," he added.

A new ion exchange treatment system has been designed and validated via testing by Basin Water personnel to meet the needs of the project. It will be built by Basin Water and installed by WESA. The system will be delivered to the site in Q3. According to Robert Gorgol, Vice President Industrial Operations, the project demonstrates the capability of Basin Water to undertake projects for the mining industry. "In recent years, a robust commodities market, combined with supply shortfalls and record prices for certain metals have led to stepped-up production for many mining operations. Increased production has also intensified the need for water treatment technology and systems," Gorgol stated. "With our strong process technology base and distinctive approach to system design and deployment, we have the ability to offer the mining industry solutions to their water treatment requirements that fit well within their existing operations and deliver low lifecycle costs," he added.

Teamwork is critical to timing and results
According to Harry Marshall, President of WESA, the relationship between Basin Water's technology+services partnership approach and his own company's quality policy made for an excellent fit. "At WESA, we believe that the responsibility for quality is shared by all the participants in a project. This means that in order to deliver the best product we can to our clients, we all need to work together closely and maintain quality every step of the way. Basin Water has been an ideal partner in the development, design and testing of this system. This gives us confidence that the installation process will go smoothly and that our client's needs will be reliably met by this system," Marshall said.

Basin Water Inc. is a provider of reliable, long-term process solutions for a range of clients, which includes designing, building and implementing systems for the treatment of contaminated groundwater, the treatment of wastewater, waste reduction and resource recovery.

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