Basin Water Making Excellent Progress Implementing New Sales Process, CEO Michael Stark Tells Annual Meeting

Basin Water, Inc. (NASDAQ: BWTR) is making excellent progress in implementing a new sales and marketing strategy, Michael M. Stark, President and Chief Executive Officer, told the annual meeting. Basin Water has substantially rebuilt its sales organization and sales and marketing support capabilities over the past months, he said. "We have developed a professional, focused systematic approach that identifies high-potential customers based on technical need for our services, the urgency a customer faces in resolving a water quality issue, and our ability to solve the problem cost-effectively for the customer and profitably for Basin,” he said. "We now have the right people throughout our organization doing the right things to grow the business, and we have a large number of potential contracts in our pipeline. However, it will take some time to fully realize the benefits of our improved sales and marketing systems,” he said. "Our customers typically require from 6 to 18 months between initial discussions and closing a sale. So, we expect that it will take a few more quarters for our revenues to reflect the significant strengthening of our sales and marketing efforts that we have implemented over the last few months,” he said. "As a result, although first quarter sales, which we will report next week, will be higher than the first quarter a year ago, they will be less than the sales we reported for the fourth quarter of 2007.” He noted that due to seasonality of the company's business, the first quarter is typically slower than other quarters, and also that there is some delay on sales to municipalities because of reduced homebuilding nationally. "Despite the housing slow down our Potable and Industrial pipeline is strong and populated with opportunities outside these recessionary influences,” he said. Mr. Stark also said that the company’s balance sheet remains strong. The company has no debt outstanding, and does not expect to borrow to meet its cash needs in the foreseeable future, he said. In addition, Mr. Stark noted that the company's first quarter cash usage will be greater than the fourth quarter of 2007 in part due to a number of one time items; however, the company expects to have sufficient cash to fund operations for the foreseeable future. Basin Water will announce its quarterly results on Monday, May 12, and, as previously announced, will conduct its quarterly investor conference call the same day. A copy of the presentation slides from the annual meeting is available on the company’s website at www.basinwater.com under "Investor Relations.” About Basin Water Basin Water, Inc. designs, builds and implements systems for the treatment of contaminated groundwater, and industrial process water. It provides reliable sources of drinking water for many communities, and the ability to comply with environmental standards and recover valuable resources from process and waste water streams. Basin Water has developed a proprietary, scalable ion-exchange treatment systems that effectively process contaminated water 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.