BWTR Basin Water (MM)

Basin Water, Inc. (NASDAQ:BWTR) announced today that it has been awarded a new contract by Millersview-Doole Water Supply Corp. of Millersview, TX, pending successful completion of a pilot demonstration. The contract � which represents the first new municipal business won by Basin Water�s recently formed Southwest Region � is for equipment and services to treat a design flowrate of 450 gpm of groundwater containing 85 picocuries per liter (pCi/L) of radium to compliant levels of less than 5 pCi/L at two wells. Validation testing of the system design will begin immediately at the site, with fabrication and installation of the treatment facility expected to be complete by early 2009. The 10-year agreement will cover Basin Water providing its high-efficiency ion exchange technology along with installation, commissioning, system start-up, monitoring, operation and maintenance. Basin Water will also manage waste handling and disposal of spent media. The agreement will give Millersview-Doole a pay-for-performance guarantee for treated water quality and total cost for the volume of quality water delivered. According to James Spain, Southwest Regional Vice President of Basin Water, the new contract will lead to another versatile drinking water solution designed by Basin Water that meets a community�s need for reliable, quality, drinking water supply. It also represents a step forward in the company�s planned geographical expansion across the United States that was first put into motion last year. �Communities like Millersview-Doole depend on groundwater sources for much of their drinking water supply. Naturally occurring radium, as seen in West Texas, is pushing water providers to explore other, more costly options including surface water and further infrastructure development. It is our goal as a company to offer a better way to meet these needs, particularly in these uncertain economic times,� Spain said. �At Basin Water, we don�t just offer water treatment systems � we design low-cost technology+services solutions that directly target customer needs, and we back our solutions with a performance guarantee. We�re excited to be working with Millersview-Doole on this project, not only by the prospect of helping to bring these wells into compliance but also by gaining our first installation in the Southwest Region � effectively bringing our proven customer-focused business model to a broader audience,� he added. Millersview-Doole Water Supply Corp. is a private, non-profit water supply firm located in Millersview, about 40 miles east of San Angelo, TX. It services 1500 connections in a four-county rural service area covering about 1300 square miles. High radium levels at district wells were first noted in 2001, and since then Millersview-Doole has worked to achieve system upgrades necessary to meet demand. Radium is a naturally occurring radioactive element that is present in rocks and soil and can enter groundwater. About Basin Water 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. Basin Water employs treatment technologies including its own proprietary, scalable ion-exchange wellhead treatment system, along with a host of other treatment technologies designed to meet customer needs 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 identify and consummate other 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, the company's ability to manage its capital to meet future liquidity needs, changes in the board of directors 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, 2007 and subsequent, Quarterly Reports on Form 10-Q. The company assumes no obligation to update these forward-looking statements to reflect any change in future events.