Basin Water Selected to Reduce Arsenic Levels in Arizona Community

The City of Cottonwood, Arizona, has selected Basin Water (Nasdaq:BWTR) for a minimum 5-year, $4.3-million contract to treat the community’s water and meet federal water quality standards for arsenic. Basin Water will construct a network of systems to treat the growing community’s 25 wells through 5 coagulation filtration (CF) and 15 ion-exchange (IX) units featuring a unique mobile regeneration capability. "After reviewing multiple options, we chose Basin Water because they were the most responsive bidder and offered a guaranteed process with single-source responsibility,” said City Manager Brian Mickelsen. "They are applying multiple technologies to our community’s wells but are doing so under an agreement that uniformly guarantees service and operations.” The city must meet new EPA standards requiring arsenic levels to be 10 parts per billion or less. The unanimous vote by Cottonwood City Council was based in part on a recommendation from the city’s engineering consultant Coe and Van Loo. Mr. Ken Knickerbocker, Senior V.P., said, "We viewed the combination of IX and CF systems as the most effective treatment choices for reducing arsenic levels given the chemistry of Cottonwood’s water supply.” "Basin Water holds a number of patents on the application of its technologies and, since 2002, we have been selected to provide treatment and service expertise on 57 systems nationwide,” said Mike Stark, Basin Water’s President and COO. "Obviously, we’re very proud of this latest agreement and will bring Cottonwood residents a reliable, worry-free source of drinking water. We’re engaging in a long-term partnership with the City of Cottonwood that guarantees a reliable source and quality of water. In addition, Basin Water is committed to provide services which ensure the efficient operation of the treatment units.” Stark said all 20 systems will be phased in throughout the year to meet the EPA’s standards by year-end 2007. About Basin Water Basin Water, Inc. designs, builds and implements systems for the treatment of contaminated groundwater, providing reliable sources of drinking water for many communities. Basin Water has developed a proprietary, scalable-ion-exchange wellhead treatment system that 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 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 and the company’s ability to manage its capital to meet future liquidity needs. 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 Form S-1 and Quarterly Reports filed on Form 10-Q. The company assumes no obligation to update these forward-looking statements to reflect any change in future events.