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Cadiz Subsidiary ATEC Water Systems Awarded $5.2 Million Contract, Increases ATEC 2024 Revenue Forecast to $15 Million from $12 Million

Award Represents ATEC’s 12th Successful Bid within the last 12 Months

Los Angeles, CALIFORNIA (05.13.24) – Cadiz, Inc. (NASDAQ: CDZI / CDZIP) (“Cadiz” or the “Company”), a California water solutions company, is pleased to announce today that the Company’s water treatment operating subsidiary ATEC Water Systems, LLC (“ATEC”), a leading producer of specialized water filtration solutions for groundwater, was the successful bidder to supply water treatment filtration systems for the Cascade Groundwater Alliance treatment project in Gresham, Oregon (“Cascade Project”). Under the terms of the award, ATEC will manufacture 140 filters to remove manganese from local groundwater for a total gross contract value of approximately $5.2 million. The filters are anticipated to be delivered over the next 12 months.

We believe“ATEC solutions offer the most affordable and effective water treatment solution on the market to address iron, manganese, arsenic, nitrates, and many other constituents of concern,” said Susan Kennedy, Chairman and CEO of Cadiz. “Addressing the growing threat of groundwater contamination is the key to making the human right to water a reality for all. We welcome the opportunity to support the Cascade project and improve access to clean water in Gresham.”

ATEC has experienced rapid growth in orders in 2024 propelled by tightening water quality regulatory standards and the need to integrate groundwater into the portfolio of water supply for growing communities. Cadiz acquired ATEC in a 2022 asset acquisition for $2 million and today expects gross ATEC segment revenues to reach $15 million in 2024, revised upward from $12 million.

ATEC’s award of the Cascade Project follows several successful bids over the last 14 months.  In March 2023, ATEC was awarded a $10 million contract to provide all wellhead filters for removal of iron and manganese for the Central Utah Water Conservancy District, the largest water district in Utah.  Earlier this year, ATEC finalized installation of new arsenic filtration systems at wells on tribal lands in Thermal, California near the Salton Sea for the Torres Martinez Desert Cahuilla Indian Tribe and also at a new water treatment facility for the Big Valley Band of Pomo Indians near Clearlake, California.

“ATEC pioneered the first successful municipal iron and manganese removal system using dioxide media and we’ve built hundreds over the last 20 years,” said Lee Odell, COO of ATEC. “Our team is thrilled to support Rockwood and the City of Gresham in this important effort.”

Manganese is currently being considered for regulation by the U.S. EPA. Manganese can cause aesthetic impacts (such as water discoloration and staining of fixtures and laundry) and studies suggest consumption poses potential risks to public health particularly for young children and babies.

The Cascade Project is a part of the Cascade Groundwater Alliance, a partnership of City of Gresham and Rockwood Water People’s Utility District formed in 2020 to expand Gresham’s groundwater system and reduce reliance on imported surface water from Portland. The new groundwater system is under construction and will be complete in 2026. It is expected to serve approximately 100,000 people in Gresham.

About ATEC

ATEC Water Systems, LLC is a wholly owned subsidiary of Cadiz Inc and a leading producer of specialized water filtration solutions for contaminated groundwater sources. ATEC’s filtration solutions are affordable, highly scalable, and easy to maintain, making them practical for a variety of applications from small, underserved communities to large municipalities. ATEC’s filters have been installed at over 450 locations, including community, municipal, agricultural, and industrial sites and used to successfully reduce and remove iron, manganese, arsenic, chromium-6 and other constituents of concern, solving some of the toughest groundwater treatment challenges. To learn more, visit www.atecwater.com.

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Award Represents ATEC’s 12th Successful Bid within the last 12 Months

Los Angeles, CALIFORNIA (05.13.24) – Cadiz, Inc. (NASDAQ: CDZI / CDZIP) (“Cadiz” or the “Company”), a California water solutions company, is pleased to announce today that the Company’s water treatment operating subsidiary ATEC Water Systems, LLC (“ATEC”), a leading producer of specialized water filtration solutions for groundwater, was the successful bidder to supply water treatment filtration systems for the Cascade Groundwater Alliance treatment project in Gresham, Oregon (“Cascade Project”). Under the terms of the award, ATEC will manufacture 140 filters to remove manganese from local groundwater for a total gross contract value of approximately $5.2 million. The filters are anticipated to be delivered over the next 12 months.

We believe“ATEC solutions offer the most affordable and effective water treatment solution on the market to address iron, manganese, arsenic, nitrates, and many other constituents of concern,” said Susan Kennedy, Chairman and CEO of Cadiz. “Addressing the growing threat of groundwater contamination is the key to making the human right to water a reality for all. We welcome the opportunity to support the Cascade project and improve access to clean water in Gresham.”

ATEC has experienced rapid growth in orders in 2024 propelled by tightening water quality regulatory standards and the need to integrate groundwater into the portfolio of water supply for growing communities. Cadiz acquired ATEC in a 2022 asset acquisition for $2 million and today expects gross ATEC segment revenues to reach $15 million in 2024, revised upward from $12 million.

ATEC’s award of the Cascade Project follows several successful bids over the last 14 months.  In March 2023, ATEC was awarded a $10 million contract to provide all wellhead filters for removal of iron and manganese for the Central Utah Water Conservancy District, the largest water district in Utah.  Earlier this year, ATEC finalized installation of new arsenic filtration systems at wells on tribal lands in Thermal, California near the Salton Sea for the Torres Martinez Desert Cahuilla Indian Tribe and also at a new water treatment facility for the Big Valley Band of Pomo Indians near Clearlake, California.

“ATEC pioneered the first successful municipal iron and manganese removal system using dioxide media and we’ve built hundreds over the last 20 years,” said Lee Odell, COO of ATEC. “Our team is thrilled to support Rockwood and the City of Gresham in this important effort.”

Manganese is currently being considered for regulation by the U.S. EPA. Manganese can cause aesthetic impacts (such as water discoloration and staining of fixtures and laundry) and studies suggest consumption poses potential risks to public health particularly for young children and babies.

The Cascade Project is a part of the Cascade Groundwater Alliance, a partnership of City of Gresham and Rockwood Water People’s Utility District formed in 2020 to expand Gresham’s groundwater system and reduce reliance on imported surface water from Portland. The new groundwater system is under construction and will be complete in 2026. It is expected to serve approximately 100,000 people in Gresham.

About ATEC

ATEC Water Systems, LLC is a wholly owned subsidiary of Cadiz Inc and a leading producer of specialized water filtration solutions for contaminated groundwater sources. ATEC’s filtration solutions are affordable, highly scalable, and easy to maintain, making them practical for a variety of applications from small, underserved communities to large municipalities. ATEC’s filters have been installed at over 450 locations, including community, municipal, agricultural, and industrial sites and used to successfully reduce and remove iron, manganese, arsenic, chromium-6 and other constituents of concern, solving some of the toughest groundwater treatment challenges. To learn more, visit www.atecwater.com.

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