February 16, 2012

LOS ANGELES, CA – Cadiz Inc. [NASDAQ: CDZI] announced today the appointment of Mr. Scott Slater to its Board of Directors.  Mr. Slater, who is currently the Company’s President and General Counsel, has been added to the Board in recognition of his growing leadership role in the Company and his success in advancing the Company’s Cadiz Valley Water Conservation, Recovery and Storage Project (“Water Project”).

Mr. Slater, one of the nation’s foremost experts in water policy and groundwater law, joined Cadiz in 2008 as General Counsel to oversee the company’s land and water resource management efforts, including development of the Water Project.   He was appointed Company President in April 2011.

In addition to his role with the Company, Mr. Slater is also a shareholder in Brownstein Hyatt Farber Schreck, L.L.P., the nation’s leading water practice firm. For 27 years, Mr. Slater’s practice has emphasized the negotiation of agreements related to the acquisition, distribution, and treatment of water.  He has served as lead negotiator on a number of important water transactions, including the negotiation of the largest conservation-based water transfer in U.S. history on behalf of the San Diego County Water Authority.

Mr. Slater is also the author of California Water Law and Policy, a two volume treatise on the subject, and has taught law and graduate courses at Pepperdine University, the University of California, Santa Barbara and the University of West Australia.  In addition, Mr. Slater has served in a variety of key water policy positions, including chair of the Natural Resources Subsection of the California State Bar, member of the Board of Directors of the American Ground Water Trust, member of the Board of Directors of the California Groundwater Resources Association, and member of the Groundwater Committee of the Association of California Water Agencies.

About Cadiz
Founded in 1983, Cadiz Inc. is a publicly-held renewable resources company that owns 70 square miles of property with significant water resources and clean energy potential in eastern San Bernardino County, California. The Company is engaged in a combination of water supply and storage, organic farming and solar energy projects, including the Cadiz Valley Water Conservation, Recovery and Storage Project. In 2009 Cadiz adopted a wide-ranging “Green Compact” to implement environmental conservation and sustainable management practices at its properties. For more information about Cadiz, visitwww.cadizinc.com.

Contact: Courtney Degener, 213-271-1600

Today Santa Margarita Water District (SMWD), the Lead Agency for the proposed Cadiz Valley Water Conservation, Recovery and Storage Project (“Project”), announced that it has extended the public comment period for the Project’s Draft Environmental Impact Report (DEIR)  an additional 30 days. The comment period will now conclude on March 14, 2012.
Cadiz Inc. supports SMWD’s decision to extend the comment period and provide the public additional time to review the science and technical information that has been developed for the Project. The Company is committed to providing a safe and sustainable water supply solution for Southern California and will continue working with interested parties throughout the environmental review process.

SMWD’s press release and the Notice of Extension of the Comment Period are available at

http://www.smwd.com/operations/the-cadiz-valley-project.html

The innovative Cadiz Valley Water Conservation, Recovery and Storage Project would enable water to be beneficially used in California by capturing water that is currently being lost to evaporation in the Mojave Desert.  The Project is currently undergoing a public review under the California Environmental Quality Act (CEQA).  As with any public process, opponents are entitled and encouraged to question CEQA documents and challenge a project’s design or assumptions.  However, many of the most vocal critics of the Cadiz Project have never visited the project area or reviewed any studies and rely instead on misinformation and assumptions that are simply incorrect, untrue and wrong.

As the authors of the geologic and hydrologic studies and many of the technical reports included in the Draft Environmental Impact Report (DEIR) for the Cadiz Project, we strongly believe that the project is based on sound modern water management practices that will provide a reliable and sustainable water supply without harm to the environment. In a transparent and open public process, all supporting studies are available to the public and included as Appendices to the DEIR and are available from the following link – http://www.smwd.com/operations/cadiz-project-draft-eir.html.

Prior to inclusion of the hydrological studies in the DEIR, they were reviewed and validated by an independent peer review panel, the Project’s Groundwater Stewardship Committee (GSC).  The GSC is chaired by Dr. John Sharp a professor at the University of Texas at Austin.  Dr. Sharp is the leading expert in groundwater hydrology and carbonate aquifers, similar to one of the aquifers found beneath the Project area.  Other members of the GSC include Dr. Charles Groat, former director of the United States Geological Survey (USGS), and international groundwater experts from the regulatory, institutional, and academic sectors.  For the summary of findings of this panel, see the Groundwater Stewardship Committee report here – http://www.smwd.com/assets/downloads/GSCSum_10-20-11.pdf.

The following summarizes our responses to questions and clarifies the facts about  the project:

The Water is Renewable.  The Project is Sustainable.
First and foremost, extensive study has been done to validate that the water at Cadiz is a renewable resource.  Using a current U.S. Geological Survey model, Infil3.0, (which was developed for desert environments and accounts for local conditions), the annual recharge to the basin is estimated at approximately 32,000 acre-feet per year.  Water will continue percolating slowly into the aquifer for centuries. The estimate of 17 – 34 million acre-feet of water in the basin, and largely up-gradient of the proposed wellfield, is based on extensive test well drilling, which has been used to construct a calibrated groundwater model that was also validated with historical data.  The model was calibrated over a range of recharge rates and shows that, even with no recharge, the project would only remove 2.5 million acre-feet over 50 years.  This is less than approximately 10% of the available water stored in the basin.

The Water is Currently Being Lost to Evaporation.
The project area is centered in the middle of a closed basin.  As the basin does not have outlets to rivers, streams, freshwater lakes, or the ocean, it is considered closed.  The only discharge for the groundwater, which is slowly migrating hydraulically down-gradient (or moving downhill) towards the highly saline dry lakes, is by evaporation.

The water is generally more than 100 feet below the surface, and no plants or animals use this groundwater.  Springs at the surface that are known to support wildlife also do not use groundwater; they are fed from precipitation that occurs in the highest elevations of the surrounding mountains of the watershed. The closest springs in the area are more than 10 miles up-gradient from the project area and in different geological formations than the project wells.

The springs cannot pull water against gravity to the surface from the groundwater basin hundreds of feet below ground.   Precipitation that makes it into the deeper soil column in the higher elevations percolates by gravity drainage downward to the regional groundwater system, and some exits to the surface as springs in the mountains. Groundwater in the system continues downhill and eventually becomes saline beneath the dry lakes and ultimately evaporates.  This fresh water is being lost and can and should be put to beneficial use.

The following link explains the hydrology of the project in detail: http://www.cadizwaterproject.com/eir/downloads/4_09_Hydrology.pdf.

Using 50,000 Acre-Feet per Year Is Optimal for Conservation.
The managed yield of the basin is considered to be that amount, which will capture and conserve annual recharge plus an optimal amount to minimize losses due to evaporation from the dry lakes. If the project only captured recharge, it would not be able to conserve water already in storage and migrating towards the dry lakes (and subsequently evaporating).  Under natural conditions, approximately three-million acre-feet of fresh water will be lost in this process over the next 100 years.  To stop the loss and reduce the flow of water to the dry lakes, extraction wells will pump groundwater and reverse the hydraulic gradient (or water table slope) before it reaches the highly saline brine of the dry lakes.  Model results show that pumping an average of 50,000 acre-feet per year will accomplish that.

The Project has No Long-Term Impacts to the Desert Environment.
After thorough examination of the potential for the project to have an effect on the immediate project area, local environment, far reaches of the watershed, and the region as a whole, the DEIR concludes that the only unmitigable impacts are short-term emissions from heavy equipment during construction and secondary effects of growth in Southern California due to making water more reliable.  (See: http://www.cadizwaterproject.com/eir/downloads/0_Exec%20Summary.pdf  )
Every other potential short- or long-term impact will be mitigated.  The project’s state of the art Groundwater Monitoring, Management and Mitigation Plan (GMMMP) is the most comprehensive groundwater plan proposed in the State of California.   The GMMMP includes far-reaching and extensive specific monitoring measures for water, air, springs, subsidence and saline/fresh water movement to ensure that the basin is managed safely. The plan also includes extensive measures to address any concerns or impacts to other users of water in the basin. For example, potential lowering of groundwater levels in private wells or in the vicinity of the dry lakes can be addressed with measures included in the GMMMP.

Because any lowering of the groundwater level occurs very slowly, the GMMMP monitoring will detect any potential impact or conditions which are not consistent with any of the predictive surface and groundwater modeling. Changes or impacts (measured in the field-water levels, water quality and subsidence) would then be used to refine the predictive models in order to allow adjustments to be made to project operations if needed, to stop any impacts before they become significant.

The Cadiz Project Work Is In Accordance With Industry Standards.
Having physically worked in the Project site area many times over the past decade, we have physically observed geologic, hydrologic and various testing (pumping and recharge tests), for many years.  The project design represents best industry practices in groundwater basin management.  When compared with use of surface water and the environmental cost of moving water from the Delta or the Colorado River, the Cadiz Valley Water Conservation, Recovery and Storage Project is completely sustainable as planned.  The Project will make a new reliable source of water available to Southern California for the next 50 years and could be a critical component of the water supply portfolio in the region.

Terry Foreman has over 30 years of consulting experience in water resources projects, mostly in the Southwestern United States. He has authored over 30 technical papers and presentations and is a Registered Geologist and Certified Hydrogeologist in California. He is a member of several professional organizations, where he has held many different officer positions through his active membership.

Dr. Dennis Williams has over 35 years of experience in ground water hydrology. He has been a consultant to the United Nations and is currently a part-time research professor at the University of Southern California’s Civil and Environmental Engineering Department where he has taught graduate level classes in geohydrology and groundwater modeling since 1980. He has authored over 30 publications on ground water and wells and was the principal author of the Handbook of Ground Water Development (John Wiley & Sons, 1990.)

During my time as the secretary of California’s Environmental Protection Agency, I worked hard to implement environmentally sound policies to address many of California’s most pressing environmental challenges, including water supply. While conservation has been crucial in helping to curb growth in water demand, most water policy experts agree that reducing demand alone will not be enough to meet the California’s future water needs. We need new supplies.

After leaving government service in the mid-2000s, I joined the Board of Directors of Cadiz Inc., a publicly-traded company that owns 70 square miles of land with significant groundwater resources in eastern San Bernardino County. The company has maintained an organic agriculture operation at its property in the Cadiz Valley for over 20 years and has pursued water supply, groundwater storage and more recently clean energy projects. I became a part of Cadiz largely because they demonstrated a commitment to implementing these projects in an environmentally responsible way.

Today Cadiz is working with water providers to develop the Cadiz Valley Water Conservation, Recovery and Storage Project, which will offer Southern California significant new groundwater storage capacity and a reliable annual supply of water. The project has been designed according to proven groundwater basin management practices, and Cadiz has invested in an exhaustive scientific and technical analysis to gain the best understanding of the project and its impact on the environment. These studies have confirmed that there is a vast quantity of water in storage in the watersheds surrounding the project area – a quantity on par with Lake Mead, the nation’s largest surface reservoir – and that billions of gallons in annual natural recharge is currently evaporating from nearby dry lakes, which could be put to beneficial use.

In designing the project, environmental protection has been paramount. Working with a first-in-class team of groundwater experts from a broad range of disciplines, Cadiz and the project’s participants have designed the project with two principles in mind: 1) to ensure that the environment is protected; and 2) that the groundwater basin is managed to maximize the beneficial use of water. A key design feature of the project is a state-of-the-art groundwater monitoring program, which follows a high standard for groundwater monitoring long championed by the environmental community. We believe this program can serve as a model for groundwater basins up and down the state.

The CEQA Draft Environmental Impact Report for the project is currently out for public comment. Water projects, and development projects in general, are sometimes difficult to support, but the goals here are highly laudable and the science is sound. I commend the participants for their effort to bring forward this local water supply/storage solution in an environmentally responsible and sustainable way in order to help secure the region’s future. I hope all Californians will too.

Winston H. Hickox, the former Secretary of the California Environmental Protection Agency, and former Special Assistant to the Gov. Jerry Brown for Environmental Affairs, is currently a principal with the consulting firm California Strategies.

San Bernardino Sun
by Winston Hickox

LOS ANGELES, CA – (December 15, 2011) – Cadiz Inc. [NASDAQ: CDZI] is pleased to announce today that it sold 500,000 shares of the Company’s common stock to Water Asset Management, L.L.C (“WAM”), an existing shareholder, increasing the fund’s position in the Company to approximately 8%. The investment by WAM of $4.5 million, when combined with the proceeds of the direct private placement completed with affiliates of Altima Partners L.L.P. last week, results in an additional $11 million of working capital for the Company. As the Company has no payment obligation on its credit facility before 2013, the proceeds will be used to fund the Company’s development activities at optimal levels.

Water Asset Management, L.L.C. is a water industry focused investment company that invests exclusively in water-related companies and assets worldwide. Founded in 2005, WAM manages a portfolio of assets across the global water sector. WAM has been a Cadiz shareholder since 2009. Additional information is available at www.waterinv.com.

“We believe that Cadiz’s significant water resources can be a critical addition to Southern California’s long term water supply needs and that the company’s management team has the vision and ability to ensure that its Water Project is implemented and operated in an environmentally and financially sound manner,“ said Water Asset Management principal Matthew Diserio.

The sale of 500,000 shares to WAM was part of an issuance by the Company of a total of 570,000 shares of its Common Stock at a price of $9 per share. Following completion of this offering, the Company will have a total of 15,359,541 shares of Common Stock outstanding.

About Cadiz Inc.

Founded in 1983, Cadiz Inc. is a publicly-held renewable resources company that owns 70 square miles of property with significant water resources and clean energy potential in eastern San Bernardino County, California. The Company is engaged in a combination of water supply and storage, organic farming and solar energy projects, including the Cadiz Valley Water Conservation, Recovery and Storage Project. In 2009 Cadiz adopted a wide-ranging “Green Compact” to implement environmental conservation and sustainable management practices at its properties. For more information about Cadiz, visit www.cadizinc.com.

###
Courtney Degener
213-271-1600

About the Draft EIR

The Draft EIR, which provides a detailed Project description and examines the potential for environmental impacts, was published for public review on December 5, 2011 by the Santa Margarita Water District (“SMWD”). SMWD is the second largest water retail agency in Orange County, a Project Participant and the Lead Agency for the Project’s California Environmental Quality Act (“CEQA”) review and permitting process. The Draft EIR is available at http://www.smwd.com/operations/cadiz-project-draft-eir.html.

A key component of the Project’s environmental review and permitting process, the Draft EIR was compiled following more than two years of significant technical analysis and field survey of environmental resources at the Project area, including critical resources of the desert environment such as vegetation, mountain springs, and water and air quality.  The Draft EIR considered the peer-reviewed technical reports, as well as independently collected data, existing reports and a new state of the art Groundwater Management, Monitoring and Mitigation Plan (GMMMP) to complete its analysis of the Project.  The Draft EIR summarizes that, with the exception of unavoidable short-term construction emissions, by implementing the measures developed in the GMMMP, the Project will avoid any significant impacts to desert resources.

“An extraordinary amount of technical work has been undertaken by countless professionals and we are grateful for the careful evaluation that has led to the completion of the DEIR.” said Scott Slater, President and General Counsel of Cadiz Inc. “We look forward to the next phase of the process and demonstrating our commitment to implementing the Project in an environmentally-responsible manner.”

The public will have the opportunity to comment on the Draft EIR until February 13, 2012. During this comment period, SMWD will conduct two public meetings and hold an informational workshop to answer questions about the Draft EIR and its supporting technical and scientific reports.  Following the close of the comment period, a Final EIR will be compiled responding to public comments. Once complete, the Final EIR will be brought to the SMWD Board of Directors for certification and Project approval.  Following the completion of all environmental requirements, construction of Project facilities would begin.

New Participant – Cal Water

In addition to the ongoing permitting process, the Company also announced today that it has entered into an Option Agreement with California Water Service Company (“Cal Water”) for conserved water and carry-over storage capacity in the Project.  Cal Water is the sixth water provider to join the Project.  With the addition of Cal Water, 80% of the water to be conserved annually by the Project is now under option.

The terms of Cal Water’s participation in the Project are consistent with those previously announced for the other Project Participants.  Cal Water will have the right to acquire a firm, annual water supply of 5,000 acre-feet and will also have the option to acquire storage capacity in the Project to manage this new supply in complement with its other water resources.  These rights will be exercisable upon completion of the CEQA process.

Cal Water, the third largest investor-owned American water utility, distributes and sells water to 1.7 million Californians through 435,000 connections. Its 24 separate water systems serve 63 communities from Chico in Northern California to the Palos Verdes Peninsula in Southern California.  Cal Water is the largest subsidiary of the California Water Service Group [NYSE: CWT] (“CWSG”), which also includes Washington Water Service Company, New Mexico Water Service Company, Hawaii Water Service Company, and CWS Utility Services. For more information, visit http://www.calwater.com.

About the Project

The Project proposes to capture and conserve thousands of acre-feet of native groundwater that will otherwise be lost to evaporation and deliver approximately 50,000 acre-feet per year to Southern California water providers.  The Project’s second phase also offers approximately one million acre-feet of aquifer storage capacity that can be used to carry-over – or “bank” – annual supplies, without the high rates of evaporative loss suffered by local surface reservoirs.

To safeguard the environment, the Project’s state-of-the-art GMMMP includes specific monitoring and mitigation features to provide the broadest assurance that the Project will be operated in a manner that causes no harm.  The GMMMP would provide a broad monitoring and mitigation safety net for Project operations.

All Project facilities will be built on privately-owned land to ensure protection and preservation of nearby wilderness areas and undisturbed federal lands. Current water provider participants include SMWD, Three Valleys Municipal Water District, Suburban Water Systems, Golden State Water Company, Jurupa Community Services District, and California Water Service Company.  The Arizona & California Railroad Company, which owns and operates the railroad right-of-way to be used by the Project’s proposed water conveyance pipeline, will receive water from the Project as well as appurtenant power and access rights for railroad purposes.  Cadiz is also in discussions with additional water providers interested in acquiring rights to the remaining annual supply conserved by the Project and is exploring opportunities with additional parties related to the imported storage component of the Project.

About Cadiz Inc.

Founded in 1983, Cadiz Inc. is a publicly-held renewable resources company that owns 70 square miles of property with significant water resources and clean energy potential in eastern San Bernardino County, California.  The Company is engaged in a combination of water supply and storage, organic farming and solar energy projects.  In 2009 Cadiz adopted a wide-ranging “Green Compact” to implement environmental conservation and sustainable management practices at its properties.  For more information about Cadiz, visit www.cadizinc.com.

###

Contact:
Courtney Degener
213-271-1600

LOS ANGELES, CA – (October 20, 2011) – Today Cadiz Inc. [NASDAQ: CDZI] (“the Company”) is pleased to announce that a multi-disciplinary panel of groundwater experts has found the Cadiz Valley Water Project can be operated on an environmentally sustainable basis to offer Southern Californians a significant water supply and storage option. The Groundwater Stewardship Committee’s findings were announced today by the Santa Margarita Water District, lead agency in the California Environmental Quality Act (CEQA) review of the Project. SMWD’s press release detailing the panel’s findings is available at www.smwd.com/gsc.“We are grateful for the GSC’s time and efforts to analyze the new science and are excited about their report, which affirms that the science supports the operation of this Project in a safe and sustainable manner. We look forward to working with the Santa Margarita Water District in the implementation of this top panel’s recommendations,” said Cadiz President Scott Slater.

The 12-member Groundwater Stewardship Committee reached its conclusions following an extensive review of the technical studies conducted as part of the ongoing CEQA process. Its findings will be incorporated into a Draft Environmental Impact Report scheduled to be released for public comment in November.

About the Project

The Cadiz Valley Water Conservation, Recovery and Storage Project is designed to capture and conserve thousands of acre-feet of native groundwater currently being lost to evaporation through an aquifer system beneath private property owned by Cadiz Inc. in eastern San Bernardino County, California. SMWD is serving as the lead agency of the CEQA review for the Project. The Project will maximize the beneficial use of groundwater currently lost to evaporation by 1) capturing the natural recharge of rain and snow that filters through the ground from the nearby mountains and 2) recovering groundwater that would otherwise continue on its down slope path and be lost to salt contamination and evaporation.

By implementing established groundwater management practices, the Project will create a new, sustainable annual water supply for Project participants, which includes SMWD, Three Valleys Municipal Water District, Suburban Water Systems, Golden State Water Company and Jurupa Community Services District. In addition, the Project offers approximately one million acre-feet of storage capacity that can be used by participants to carry-over – or “bank” – annual supplies, without the high rates of evaporative loss suffered by local surface reservoirs. Safeguarding the preservation of nearby wilderness areas and undisturbed federal lands, Project facilities will be built on privately-owned land.

About Cadiz Inc.

Founded in 1983, Cadiz Inc. is a publicly-held renewable resources company that owns 70 square miles of property with significant water resources and clean energy potential in eastern San Bernardino County, California. The Company is engaged in a combination of water supply and storage, organic farming and solar energy projects. In 2009 Cadiz adopted a wide-ranging “Green Compact” to implement environmental conservation and sustainable management practices at its properties. For more information about Cadiz, visit www.cadizinc.com.

Contact: Courtney Degener, 213-271-1603

Last year, following the release of new scientific findings about the water resources at the Project area, the Company produced a video describing the extent of the area’s water resources and the science behind the Project. This video can be viewed at the following link: http://www.cadizinc.com/pureproof.

About the Project

The Cadiz Valley Water Conservation, Recovery and Storage Project is designed to capture and conserve thousands of acre-feet of native groundwater currently being lost to evaporation through an aquifer system beneath the Company’s property in eastern San Bernardino County, California. By implementing established groundwater management practices, the Project proposes to create a sustainable annual water supply for Project participants. In addition, the Project offers storage capacity that can be used by participants to carry-over – or “bank” – annual supplies, without the high rates of evaporative loss suffered by local surface reservoirs. Project facilities would be built on Cadiz property and other privately-owned land in the area.

A Groundwater Stewardship Committee comprised of leading hydrology, geology, and environmental experts will oversee the Project’s operating and monitoring program to ensure the environmental sustainability of the Project and safeguard nearby federal lands and pristine desert.

The Project is currently in a CEQA environmental review and permitting phase led by Santa Margarita Water District (“SMWD”). A Notice of Preparation (“NOP”) of a Draft Environmental Impact Report (“DEIR”) formally commencing the public portion of the CEQA process was issued in February 2011 by SMWD. Preparation of the DEIR is ongoing and the document is expected to be released in the coming months.

About Cadiz Inc.

Founded in 1983, Cadiz Inc. is a publicly-held renewable resources company that owns 70 square miles of property with significant water resources and clean energy potential in eastern San Bernardino County, California. The Company is engaged in a combination of water supply and storage, organic farming and solar energy projects. In 2009 Cadiz adopted a wide-ranging “Green Compact” to implement environmental conservation and sustainable management practices at its properties. For more information about Cadiz, visit www.cadizinc.com.

###

This release contains forward-looking statements that are subject to significant risks and uncertainties, including statements related to the future operating and financial performance of the Company and the financing activities of the Company. Although the Company believes that the expectations reflected in our forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Factors that could cause actual results or events to differ materially from those reflected in the Company’s forward-looking statements include the Company’s ability to maximize value for Cadiz land and water resources, the Company’s ability to obtain new financing as needed, and other factors and considerations detailed in the Company’s Securities and Exchange Commission filings.

Contact: Courtney Degener, Investor Relations, 213-271-1600

LOS ANGELES, CA (May 24, 2011) – Today Cadiz Inc. [NASDAQ: CDZI] (“Cadiz”) announced the release of a report by prominent economist John E. Husing, Ph.D. which found that the Cadiz Valley Water Conservation, Recovery and Storage Project (“Project”) would create and support over 5,900 jobs, generate more than $878 million in economic activity over its two phases, and infuse tens of millions in tax revenue to local governments. The Project is designed to provide renewable local groundwater to Southern California communities by building a wellfield and pipeline on privately owned land to deliver water to the Colorado River Aqueduct. A second phase of the Project would provide approximately one million acre-feet of underground storage for imported water.
“The construction phase of the Cadiz Valley Water Project would create a cumulative total of nearly 6,000 direct, indirect and induced jobs over the four years of effort, to tap into San Bernardino County’s extensive labor supply, where the high desert unemployment was 16.4% in March 2011. It would also support local manufacturers of materials used in construction of wells, pipelines, and power generation, with a net local four year economic impact of $878 million,” said Dr. Husing. “Over the long term, the Project also would significantly increase property tax revenue, annually increasing tax revenue to San Bernardino County by approximately $5.4 million per year, and approximately $613,000 to the Needles Unified School District.”
“The Cadiz Project would bring exactly the kind of quality green jobs we need in our area, and support Fontana’s local manufacturers. I am very impressed by the report and encouraged that the Cadiz Project offers a new opportunity to help the local economy bounce back,” said Fontana Mayor Aquanetta Warren.

Over 45 years, Dr. Husing has focused his work primarily on the Inland Empire, studying the economy and demographic trends in San Bernardino and Riverside Counties. His report released today analyzed the year-by-year results of the Project’s design and construction, considering annual expenditures, direct, indirect and induced job creation, and the long-term increase in property tax value over the life of the Project. The report, available at http://www.cadizinc.com/econ-impact-report, was prepared in advance of final design for the phased project. The environmental impacts attributable to the expected job creation will be analyzed in the Environmental Impact Report for the Project taking into account Project phasing and final design.

The job creation and economic impact findings are based on an estimated construction cost of approximately $278 million for the conservation and recovery phase of the Project, and an estimated construction cost of approximately $258 million for the second imported water storage phase. Dr. Husing found that this investment would directly create quality engineering, construction and manufacturing jobs at the Project area and additional employment opportunities in the surrounding communities as the Project’s vendors and workers spend their earnings locally. Altogether the ripple effect of Project construction totals more than $878 million in new economic activity in San Bernardino County.

“The Inland Empire’s recovery depends on jumpstarting the construction and manufacturing sectors which are our primary economic engines,” said Bob Van Valer, President of Roscoe Moss Company. “The Project comes at a time when we need it most and presents a unique opportunity for the County to support local vendors and job creation.”

“Our industry is currently suffering from three consecutive years of declining markets, and this Project represents nearly a full year of production for our employees and our local supply partners in the Adelanto/Victorville community,” said Gary Stokes, President, Water Transmission Group, Northwest Pipe Company.

“Families in San Bernardino County have been hit hard by the weak economy, especially the lack of jobs in the construction industry, and we are excited by the opportunity to get people to work in good green jobs building this project,” said Richard Sierra, area Business Manager of the Laborers International Union.

The Riverside-San Bernardino-Ontario metropolitan area has one of the highest unemployment rates in the nation according to the Bureau of Labor Statistics (http://www.bls.gov/news.release/metro.nr0.htm). In April 2011, San Bernardino County’s unemployment rate was estimated at 13.3% (http://www.edd.ca.gov/About_EDD/pdf/urate201105.pdf). Case-Shiller recently named the area one of the five worst housing markets in the nation.

About the Project

The Cadiz Valley Water Conservation, Recovery and Storage Project is designed to capture and conserve thousands of acre-feet of native groundwater currently being lost to evaporation through an aquifer system beneath Cadiz’s property in eastern San Bernardino County, California. By implementing established groundwater management practices, the Project proposes to create a sustainable annual water supply for Project participants. In addition, the Project offers storage capacity that can be used by participants to carry-over – or “bank” – annual supplies, without the high rates of evaporative loss suffered by local surface reservoirs. Project facilities will be built on Cadiz’s property and other privately-owned land in the area. A Groundwater Stewardship Committee comprised of leading hydrology, geology, and environmental experts has been assembled to oversee the Project’s operating and monitoring program, which will ensure the environmental sustainability of the Project and safeguard nearby federal lands and pristine desert.
The Project is currently in a CEQA environmental review and permitting phase led by Santa Margarita Water District (“SMWD”). A Notice of Preparation (“NOP”) of a Draft Environmental Impact Report (“DEIR”) formally commencing the public portion of the CEQA process was issued in February 2011 by SMWD, and a 30-day scoping period was initiated. Two public scoping meetings were held in March 2011. Preparation of the DEIR is ongoing and the document is expected to be released for public comment in the coming months.

About Cadiz Inc.

Founded in 1983, Cadiz Inc. is a publicly-held renewable resources company that owns 70 square miles of property with significant water resources and clean energy potential in eastern San Bernardino County, California. The Company is engaged in a combination of water supply and storage, organic farming and solar energy projects. In 2009 Cadiz adopted a wide-ranging “Green Compact” to implement environmental conservation and sustainable management practices at its properties. For more information about Cadiz, visit www.cadizinc.com.

###

This release contains forward-looking statements that are subject to significant risks and uncertainties, including statements related to the future operating and financial performance of the Company and the financing activities of the Company. Although the Company believes that the expectations reflected in our forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Factors that could cause actual results or events to differ materially from those reflected in the Company’s forward-looking statements include the Company’s ability to maximize value for Cadiz land and water resources, the Company’s ability to obtain new financing as needed, and other factors and considerations detailed in the Company’s Securities and Exchange Commission filings.

Contact: Courtney Degener, 213-271-1603

LOS ANGELES, CA (May 6, 2011) – Today Cadiz Inc. [NASDAQ: CDZI] (“Cadiz”) announced that it has entered into an Option Agreement with Southern California water provider Jurupa Community Services District (“JCSD”) for conserved water and carry-over storage capacity from its Cadiz Valley Water Conservation, Recovery and Storage Project (“the Project”). JCSD, which serves customers in parts of western Riverside County, is the fifth water provider to agree to participate in the Project, joining Santa Margarita Water District, Three Valleys Municipal Water District, Golden State Water Company and Suburban Water Systems. With the addition of JCSD, over 70% of the water to be conserved annually by the Project is now under option.

JCSD’s involvement in the Project will be on terms consistent with those previously announced for the other Project participants. JCSD will have the right to acquire a firm, annual supply of 5,000 acre-feet of water and will also have the option to acquire storage capacity in the Project to manage this new supply in complement with its other water resources. These rights will be exercisable upon completion of the Project’s California Environmental Quality Act (“CEQA”) review, which is currently underway. JCSD has committed funds to the CEQA review process and will share costs with the other Project participants and Cadiz.

“The Jurupa Community Services District is dedicated to ensuring the future delivery of a reliable, high-quality water supply for our

customers,” said JCSD Board of Directors President Jane Anderson. “The Cadiz Valley Project offers a new way to minimize variability in our annual supplies and improve reliability for our customers at a competitive cost. We look forward to participating in the next phase of this exciting Project.”

“We are pleased that Jurupa Community Services District has joined the four other water providers as a participant in the Project.” said Scott Slater, Cadiz General Counsel. “The Project is committed to improving long-term water supply reliability in Southern California without harm to the desert and watershed environment at the Project area. Jurupa has a long history of safe and sustainable use of Southern California’s groundwater and we welcome their participation in the Project.”

Cadiz is in discussions with additional water providers that are interested in acquiring rights to the remaining annual supply conserved by the Project and is also exploring opportunities with additional parties related to the imported storage component of the Project.

About the Project

The Cadiz Valley Water Conservation, Recovery and Storage Project is designed to capture and conserve thousands of acre-feet of native groundwater currently being lost to evaporation through an aquifer system beneath Cadiz’s property in eastern San Bernardino County, California. By implementing established groundwater management practices, the Project will create a new, sustainable annual water supply for Project participants. In addition, the Project offers storage capacity that can be used by participants to carry-over – or “bank” – annual supplies, without the high rates of evaporative loss suffered by local surface reservoirs. Project facilities will be built on privately-owned land to safeguard nearby federal lands and pristine desert.

The Project is currently in a CEQA environmental review and permitting phase led by Santa Margarita Water District (“SMWD”). A Notice of Preparation (“NOP”) of a Draft Environmental Impact Report (“DEIR”) formally commencing the public portion of the CEQA process was issued in February 2011 by SMWD, and a 30-day scoping period was initiated. Two public scoping meetings were held in March 2011. A Groundwater Stewardship Committee of leading national groundwater experts was formed in April 2011 to guide the development of an operating plan and monitoring program for the Project. Preparation of the DEIR is ongoing and the document is expected to be released in the coming months.

About Jurupa Community Services District

Founded in 1956, the Jurupa Community Services District is a public agency known as a Special District, responsible for providing water and sewer services and maintaining parks and frontage landscape in an unincorporated, 48-square-mile region of western Riverside County, California. For more information, visit JCSD’s web site at www.jcsd.us.

About Cadiz Inc.

Founded in 1983, Cadiz Inc. is a publicly-held renewable resources company that owns 70 square miles of property with significant water resources and clean energy potential in eastern San Bernardino County, California. The Company is engaged in a combination of water supply and storage, organic farming and solar energy projects. In 2009 Cadiz adopted a wide-ranging “Green Compact” to implement environmental conservation and sustainable management practices at its properties. For more information about Cadiz, visit www.cadizinc.com.

Contact:  Courtney Degener, Investor Relations, p. 213-271-1603