MISSION WOODS, Kan., Oct. 3, 2001 — Layne Christensen Company announced today that it has formed a new company to pursue opportunities in the areas of risk management and financial services for water resources, water rights, resource acquisition, development and management.
The new company will manage water-related risks and opportunities for clients from the energy, high-tech, real estate and investment sectors. The company intends to acquire and develop water assets with a focus on combining sustainable water resources with financial services for a total solution for water-short areas primarily in the United States. Layne's partner in this effort will be Western Development and Storage, LLC ("WDS"), whose principals are Disque Deane Jr. and D. Cole Frates. The new company will be called Layne Water Development and Storage, LLC ("LWDS").
Andrew B. Schmitt, President and Chief Executive Officer of Layne Christensen Company, stated: "We held off entering this market for a number of years. Although we felt it had enormous potential, we were concerned with the difficulties early entrants into the market were encountering. In our opinion, these companies laid a lot of good groundwork and advanced the state of public/private partnerships, but timing, bureaucracy, and the many vested interests negated much of their progress. We also felt most entrants understood the `deal' side but did not have the history, credibility, marketing network and construction skills which Layne has built through its more than a century of service in the water business. What makes this new company different is that we combined those extensive resources with individuals whose skill sets are strongest in the areas of risk management, financing, acquiring and developing water assets. Disque Deane Jr. and his associates bring a unique understanding of the complexities of this segment of the water business and we believe a correct vision for what must happen if the U.S. and world's needs for water are going to be met in the years ahead. Their partnering with Layne, a company that has found and developed more water than anyone in the United States, is a great combination. I feel, although we are new to this segment of the market, our combined experience, size and depth immediately positions LWDS as an industry leader."
Disque Deane Jr., commenting further, stated: "The opportunity exists for LWDS and, by extension, Layne to become the one-stop water provider. If LWDS does its job correctly, every entity, public or private, that works with water in a significant way is a potential customer for LWDS to manage their water-related risks and to develop and possibly finance their water needs on a permanent basis. For the next quarter century LWDS' ability to grow will only be limited by its ability to contact, close and service potential clients. With Layne as a partner LWDS is off to a running start because we are already a known entity to literally thousands of potential customers."
