BWTR Basin Water (MM)

Coughlin Stoia Geller Rudman & Robbins LLP (�Coughlin Stoia�) (http://www.csgrr.com/cases/basin/) today announced that a class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of Basin Water, Inc. (�Basin�) (NASDAQ:BWTR) common stock during the period between May 14, 2007 and November 13, 2007 (the �Class Period�). If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff�s counsel, Darren Robbins of Coughlin Stoia at 800/449-4900 or 619/231-1058, or via e-mail at djr@csgrr.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.csgrr.com/cases/basin/. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. The complaint charges Basin and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Basin designs, builds and implements systems for the treatment of contaminated groundwater. The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company�s business and financial results. As a result of defendants� false statements, Basin stock traded at artificially inflated prices during the Class Period, reaching a high of $13.06 per share on November 8, 2007. On November 14, 2007, before the market opened, the Company reported its financial results for the quarter ended September 30, 2007, and announced that during the third quarter, the Company recorded a $4.7 million charge to cost of revenues to reserve for future projected losses. The reserve was due primarily to poorly priced contracts, increasing waste disposal and salt purchase costs and the inability to contractually pass increased costs on to the Company�s clients. This charge to cost of revenues was in addition to the reserve previously recorded in the fourth quarter of 2006. On this news, Basin�s stock declined $2.29 per share to close at $8.01 per share, a one-day decline of 22% on volume of 1.4 million shares. According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company failed to properly account for its reserves for its legacy system contracts related to its system sales and water service agreement contracts; (b) the Company�s unprofitable legacy business would continue to weigh on the Company�s results for some period of time as the Company was having difficultly reworking its unfavorable legacy contracts; (c) defendants� Class Period statements that by the end of the second quarter of 2007 the Company had largely completed its internal operational transition of its business practices and processes and had resolved the bulk of the issues concerning its legacy contracts were patently false; and (d) the Company lacked requisite internal controls to ensure that Company was properly accounting for its reserves for its legacy contracts, and, as a result, the Company�s projections and reported results issued during the Class Period were based upon defective assumptions and/or manipulated facts. Plaintiff seeks to recover damages on behalf of all purchasers of Basin common stock during the Class Period (the �Class�). The plaintiff is represented by Coughlin Stoia, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. Coughlin Stoia, a 190-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston and Philadelphia, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. Coughlin Stoia lawyers have been responsible for more than $45 billion in aggregate recoveries. The Coughlin Stoia Web site (http://www.csgrr.com) has more information about the firm.