Basin Water Reaches Agreement with Water & Earth Sciences for Treatment System at...

Basin Water Reaches Agreement with Water & Earth Sciences for Treatment System at Canadian Mine Site

New contract is first large-scale mining water treatment project
for the company
RANCHO CUCAMONGA, Calif.--(Business Wire)--
Basin Water, Inc. (NASDAQ:BWTR) 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.

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.

Basin Water, Inc.
Michael M. Stark, President & Chief Executive Officer
909-481-6800
www.basinwater.com

Copyright Business Wire 2008