BWTR Basin Water (MM)

Basin Water, Inc. (NASDAQ:BWTR) announced today that it has been selected to provide a nitrate removal treatment system for delivering reliable, high quality drinking water to the City of Pomona in Los Angeles County, CA. Basin Water�s proprietary high-efficiency ion exchange technology will treat over one million gallons per day at the City�s Well #37 and will reduce high nitrate levels to meet State and Federal regulations. Extremely low waste rates made possible by Basin Water technology will reduce costs and add millions of gallons of additional drinking water to the City�s water resources. The cost for treating nitrate contaminated groundwater will lower the City�s cost for delivered drinking water compared to imported water supplies � by nearly 40%. Basin Water is partnering with Schuler Engineering (Corona, CA) on this project. As part of the overall project, the City will create an informational kiosk that will be used to educate the citizens of Pomona about the programs and technology that are employed by the City to ensure a reliable, safe drinking water supply. The Well 37 project is the second installation by Basin Water for the City of Pomona. According to Orlando Carre�o, Vice President, Western Region of Basin Water, treating groundwater is the lowest cost and potentially the only way that cities in drought-stressed areas can keep up with the drinking water demands of their communities. �Southern California has seen a sharp increase in the cost of imported surface water supplies of drinking water in the last few years, because of an eight year drought affecting one of the main sources of that water � the Colorado River watershed. Increasingly, the region is considering treatment of groundwater as an alternative to imported water because new technology allows treated groundwater to be delivered at a lower cost. It also gives these communities more security and control over their water supplies,� he said. �The City of Pomona is on the leading edge of adjusting to the new realities of water supplies in the West and has made groundwater treatment an important part of their solution. We are grateful for the opportunity to work with the Pomona Utility Services Department and Schuler Engineering on behalf of the citizens of this community,� he said. The new water realities of Southern California The City of Pomona covers nearly 23 sq mi (60 km2) and serves a population of approximately 167,000 people. Like many cities in Southern California, Pomona was a major agricultural producer until it began the transition to high tech industry and residential use. Its history in agriculture means that much of its groundwater has been subject to nitrate contamination from fertilizer use. In addition to treating surface water supplies from the Mt. Baldy Watershed, the City's Utility Services Department also draws water from three groundwater aquifers: the Chino Basin, the Six Basins, and the Spadra Basin. The new well is a part of the City of Pomona�s on-going program to reduce its reliance on expensive imported water, provide a higher level of drought-proofing for the City's customers, and more fully utilize adjudicated groundwater rights. The City currently imports water from the Metropolitan Water District of Southern California -- a cooperative of 26 cities and water agencies serving 18 million people in six counties. The District draws water from the Colorado River and Northern California to supplement local supplies. The Colorado River watershed is in the midst of an 8-year drought. This year, Southern California is poised to have its driest season since 1877. As an example, this season, which ends June 30, nearby Long Beach has received 2.10 inches of rain, about 16 percent of the 12.89 inches it normally receives. As part of the new construction, the City of Pomona will develop educational resources at the well site that sits close to one of the area�s schools. "In the arid West, water resource development that has the support of our customers is all important because projects are so expensive," said Jim Taylor, Pomona Water/Wastewater Operations Manager. "If we are to get the support of the community, I can think of no better way to get our story out than to build an educational component into the design of new facilities. We are fortunate to showcase a number of innovative educational experiences for the children of Pomona that can be seen at the new water treatment plant and this is exciting," he added. New business model creates new opportunities With over 50 installations in the United States today, Basin Water has refined its groundwater contamination solutions to offer a number of attractive benefits to both public and private water purveyors. Basin Water treatment systems are low profile and have a small footprint, making them ideal for placement at a wellhead or in residential areas. The design of the systems means that they can be rapidly built, deployed, and permitted at the site. They offer dramatically lower waste rates compared with conventional ion exchange systems and other treatment approaches, allowing disposal of waste via trucking and eliminating the need for new waste-handling facilities. Automatic operation of these systems means they require minimal training and operator supervision for a customer. The company adds a long-term service-based operation and maintenance program that maintains reliability, guarantees compliance, capital and operations cost as well as flexible financing options that feature payment based on performance. The combination of these benefits delivers reliable potable water supplies at the lowest cost. About Basin Water Basin Water, Inc. is a provider of reliable, long-term sources of water for many communities, which includes designing, building and implementing systems for the treatment of contaminated groundwater. Basin Water employs treatment technologies including its own proprietary, scalable ion-exchange wellhead treatment system which reduces groundwater contamination levels in an efficient, flexible and cost effective manner. Additional information may be found on the company's web site: www.basinwater.com. Forward Looking Statements This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including expectations relating to future revenues and income, the company's ability to gain new business and control costs, involve risks and uncertainties, as well as assumptions that, if they prove incorrect or never materialize, could cause the results of the company to differ materially from those expressed or implied by such forward-looking statements. Actual results may differ materially from these expectations due to various risks and uncertainties, including: the company's limited operating history, significant operating losses associated with certain of the company's contracts, the company's ability to improve its business processes, the company's ability to consummate any acquisitions of water resource projects and convert non-potable water into drinking water supplies, the company's ability to identify and consummate acquisition opportunities that improve the company's revenues and profitability, significant fluctuations in its revenues from period to period, its ability to effectively manage its growth, the success of the company's strategic partners, its long sales cycles, market acceptance of its technology, the geographic concentration of its operations and customers, its ability to meet customer demands and compete technologically, the company's ability to protect its intellectual property, regulatory approvals of the company's systems, changes in governmental regulation that may affect the water industry, particularly with respect to environmental laws, the company's ability to attract and retain qualified personnel and management members and the company's ability to manage its capital to meet future liquidity needs and the timing of the company's stock repurchases, if any. More detailed information about these risks and uncertainties are contained in the company's filings with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended December 31, 2006 and Quarterly Report on Form 10Q for the quarter ended March 31, 2007. The company assumes no obligation to update these forward-looking statements to reflect any change in future events.