California Water Service Company, Salinas District Contracts Basin Water for Nitrate...

California Water Service Company, Salinas District Contracts Basin Water for Nitrate Removal Program

New System Marks Seventh Well-Site Installation and
Technology+Services Agreement between Parties
RANCHO CUCAMONGA, Calif.--(Business Wire)--
Basin Water Inc. (NASDAQ:BWTR), announced the finalization of a
ten-year technology+services agreement with California Water Service
Company (Cal Water) in its Salinas District for the removal of
nitrates from groundwater at the District's 65-01 well site. The Basin
Water proprietary high-efficiency ion exchange treatment system
currently in preparation for the site will be the seventh system
installed for Cal Water in this heavily agricultural district. Like
Salinas' other Basin Water systems, this installation will be managed
under an agreement that guarantees system performance on the basis of
treated water volume and effluent compliance. In addition to
guaranteed performance, the new system will generate low waste rates,
maximize water recovery and accommodate the district's need to fit the
new treatment capacity into a minimal footprint at the well-head.

According to Orlando Carreno, Vice President, West Region for
Basin Water, the new contract underlines not only the continuing
success of Basin Water's relationship with Cal Water in Salinas but
also the value that is delivered via the technology+services business
model. "California Water Service Company was one of the first water
providers in the United States to recognize the value that Basin Water
technology+services provide and we are very proud that our
relationship has grown with each passing year," Carreno said. "Cal
Water is at the leading-edge of a phenomenon that we expect to see
grow throughout the West and across the United States as communities
face new and increasingly stringent water quality regulations in an
environment where economic and personnel resources are limited. At
Basin Water, we believe we are up to the challenge of helping them
meet their goals," he continued.

Companies continue 6-year "partnership" relationship

Cal Water is one of six subsidiaries of California Water Service
Group, one of the largest investor-owned, U.S.-based water utilities
in the nation. Cal Water serves nearly 2 million people through
approximately 461,000 connections and utilizing nearly 900 wells. The
Salinas District is 100% dependent on groundwater sources, and faces a
constant threat from both nitrate contamination and saltwater
intrusion.

The 65-01 site, like all of Basin Water's other installations with
Cal Water Salinas, will be a turnkey installation in which Basin Water
assists the district with California Department of Public Health
permitting and provides all treatment equipment and associated
connections, piping, wiring, startup and commissioning services,
followed by full operation and maintenance of the unit for a ten-year
period. The ten-year agreement features guaranteed cost of equipment
and operation and represents a lowest life-cycle solution for the
District. Basin Water employs a full-time dedicated technician in the
Salinas District to provide these services at all seven installations.
Start-up of the new system is expected to take place in spring 2008.

"At Cal Water, water quality is our highest priority, and we look
forward to working with the Basin Water team on this important
project," said Assistant District Manager Mike Jones. "Basin Water has
been an important partner to the Salinas District for six years, and
we're happy to continue the relationship," he added.

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. 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