Layne Christensen Announces Signed Letter of Intent to Purchase American Water's Underground Infrastructure Group

The Letter of Intent sets forth certain conditions including thesigning of a definitive agreement. The transaction is expected toclose no later than November 15, 2006.

Jeff Reynolds, Executive Vice President of Layne ChristensenCompany, stated, "UIG represents a significant opportunity for us toincrease our share of the CIPP service market which we expect willcontinue to experience rapid growth as sewer pipe infrastructure isrepaired. They have an excellent reputation in the industry and we arevery fortunate to have them join forces with us. The acquisition incombination with Reynolds' Inliner business would firmly establishLayne as the number two CIPP competitor in the U.S. market."

Andrew B. Schmitt, President and CEO of Layne Christensen Company,stated, "We really like the CIPP market. Where applicable, thisprocess offers an effective and economic alternative to sewer pipereplacement. With the U.S. facing enormous sewer pipe integrityproblems, we believe this product line will be an important growthengine for many years."

Questions to Layne concerning this transaction may be directed toJerry W. Fanska, Vice-President-Finance, at 913-677-6858 and questionsto American Water may be directed to Kimberly Cooper, Director,External Communications at 856-346-8207.

This press release contains forward-looking statements within themeaning of Section 27A of the Securities Act of 1933 and Section 21Eof the Exchange Act of 1934. Such statements may include, but are notlimited to, statements of plans and objectives, statements of futureeconomic performance and statements of assumptions underlying suchstatements, and statements of management's intentions, hopes, beliefs,expectations or predictions of the future. Forward-looking statementscan often be identified by the use of forward-looking terminology,such as "should," "will," "will be," "intended," "continue,""believe," "may," "hope," "anticipate," "goal," "forecast," "plan,""estimate" and similar words or phrases. Such statements are based oncurrent expectations and are subject to certain risks, uncertaintiesand assumptions, including but not limited to the ability of Layne andAmerican Water to negotiate and sign a mutually acceptable definitiveagreement, the results of due diligence, the ability of Layne tosuccessfully integrate the operations of UIG into its existingbusinesses, prevailing prices for various commodities, unanticipatedslowdowns in the Company's major markets, the risks and uncertaintiesnormally incident to the exploration for and development andproduction of oil and gas, the impact of competition, theeffectiveness of operational changes expected to increase efficiencyand productivity, worldwide economic and political conditions andforeign currency fluctuations that may affect worldwide results ofoperations. Should one or more of these risks or uncertaintiesmaterialize, or should underlying assumptions prove incorrect, actualresults may vary materially and adversely from those anticipated,estimated or projected. These forward-looking statements are made asof the date of this release, and the Company assumes no obligation toupdate such forward-looking statements or to update the reasons whyactual results could differ materially from those anticipated in suchforward-looking statements.

Layne Christensen Company provides sophisticated services andrelated products for the water, mineral, construction and energymarkets.