CADIZ AND METROPOLITAN WATER DISTRICT PARTNER
ON WATER STORAGE AND SUPPLY PROGRAM

Santa Monica, CA ­ Cadiz Land Company, Inc., (Nasdaq: "CLCI") announced today the Board of Directors of the Metropolitan Water District of Southern California ("Metropolitan") has approved the recently released principles and terms for agreement for a cooperative groundwater storage and dry-year supply program, authorized preparation of a final agreement based on these principles and terms and initiated the environmental review process for the program.

CLCI owns approximately 27,000 acres in the Cadiz and Fenner valleys of eastern San Bernardino County -- property that overlays an underground aquifer system with significant water recharge and storage capacities, and which yields substantial amounts of high-quality, indigenous groundwater. The principles and terms for agreement provide that Metropolitan will, during wet years or periods of excess supply, store surplus water from its Colorado River Aqueduct in CLCI's aquifer system. During dry-years or times of reduced allocations from the Colorado River, the previously imported water, together with additional indigenous groundwater, will be extracted and delivered, via a 35-mile conveyance pipeline, back to the Aqueduct.

During the 50-year term of the agreement, Metropolitan will store a minimum of 500,000 acre-feet of Colorado River Aqueduct water in CLCI's groundwater basin and purchase a minimum of 1,100,000 acre-feet of indigenous groundwater for transfer during dry-years. If an additional 400,000 acre-feet of dry-year supplies can be made available through proper management of the groundwater basin, Metropolitan will further commit to purchasing that water or substituting a like amount for storage. The program will have the capacity to convey, either for storage or transfer, 100,000 acre-feet in any given year.

During storage operations, Metropolitan will pay $90 per acre-foot for Colorado River Aqueduct water cycled through the basin ($50 for put of water and $40 for return of water), and a $5 per acre-foot storage fee every year that water is stored in the groundwater basin. On the transfer of water, Metropolitan will pay a base rate of $230 per acre-foot which will be adjusted according to a water price index. Additionally, recognizing that delivery of CLCI's high-quality, indigenous groundwater to the Aqueduct provides a significant water quality benefit, Metropolitan will pay CLCI a water quality fee for both transferred and returned water.

The program facilities, including spreading basins, extraction wells, conveyance pipeline and a pumping plant, are estimated to cost between $125 and $150 million, and both parties will jointly share these costs. All operational costs of the program, including annual operations, maintenance and energy costs, will be an obligation of Metropolitan.

The principles and terms for agreement call for the establishment of a comprehensive, independent groundwater monitoring and management plan to ensure long-term protection of the groundwater basin. Both parties have now authorized the funds to commence with the environmental review process, which will include compliance with California Environmental Quality Act and National Environmental Protection Act requirements. The final agreement may reflect adjustments to these principles and terms in order to reflect information identified during this review. The final agreement will be presented to the respective Boards of both parties for approval. The program is anticipated to be operational by the year 2001.

"Today's action now allows Metropolitan and Cadiz to proceed with the environmental review process, which will evaluate all relevant issues and provide opportunity for public review and comment," said Marvin Shaw, Vice President of Resource Development for Cadiz Land Company.

Facing a rapidly increasing population and reduced allocations of Colorado River water, Metropolitan is seeking reliable, high-quality alternative water supplies to assist with Southern California's projected shortages.

Founded in 1983, CLCI is a publicly held agricultural and water development firm. Through its subsidiary, Sun World International, Inc., CLCI is one of the largest vertically integrated agricultural companies in California. CLCI owns significant landholdings in Southern California with substantial underlying water resources and storage potential.

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