Santa Monica, CA – Cadiz Inc. (Nasdaq: CLCI) In response to an article this weekend in the Los Angeles Times regarding Colorado River Programs, the Company has received several inquires regarding the status of the regulatory approvals for the Cadiz Groundwater Storage and Dry-Year Supply Program.

The Program awaits final federal approval from the Department of Interior with the issuance of the Record of Decision. The Company still anticipates that this will occur shortly.

Last Thursday, Senator Feinstein inserted language in the Department of Interior Appropriations bill to prohibit the Department from expending administrative funds to permit the Cadiz Program in fiscal year 2003. This language was not included in the House version of the bill and therefore must still be debated in a Senate/House conference committee.

While Senator Feinstein appears to continue to have concerns relating to the Program’s Groundwater Monitoring and Management Plan, the project has received widespread support from regulatory and permitting agencies. Furthermore, the Final Environmental Impact Report/Environmental Impact Statement published in October 2001 clearly states that "(the Management Plan was prepared by the Bureau of Land Management (BLM), National Park Service (NPS), United States Geological Survey (USGS), the Metropolitan Water District of Southern California (Metropolitan), the County of San Bernardino, and Cadiz Inc." The authors of this document unanimously agreed that the overriding objective of protecting critical resources would be achieved by the implementation of this Management Plan. This represents an unparalleled level of cooperation and agreement among federal, state and local agencies. Cadiz has and will continue to work to address the Senator’s issues and ensure the successful permitting and implementation of the project.

In March of 2002, the U.S. Fish and Wildlife Service issued a biological opinion determining that the Program will not adversely impact plants and wildlife, including the desert tortoise.

Prior to this action, the U.S. Environmental Protection Agency issued a "conformity determination" concluding that the program fully complies with the Clean Air Act. Both endorsements are important considerations in the review process leading to the issuance of the Record of Decision.

The project still awaits certification of the Environmental Impact Report by the Metropolitan Water District Board of Directors and approval of the final contract – the final step in almost five years of detailed and comprehensive environmental review.

Founded in 1983, Cadiz Inc., is a publicly held water resource management and agricultural firm. With its subsidiary, Sun World International, Inc., Cadiz is one of the largest vertically integrated agricultural companies in California. The Company owns significant landholdings with substantial water resources throughout California. Further information on the Company can be obtained by visiting its corporate web site at 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 successful implementation of the Cadiz Program. Although the Company believes that the expectations reflected in its 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 the timing and terms of various approvals required to complete the Program, and other factors and considerations detailed in the Company’s most recent Form 10-K, and other Securities and Exchange Commission filings.

- ### -

Return to News Releases & Program Updates