CADIZ REPORTS THIRD QUARTER RESULTS
Announces Sale of American SunMelon

Santa Monica, CA - Cadiz Inc., (Nasdaq: CLCI) today reported results for the third quarter ended September 30, 1998. Revenues for the quarter were $45.6 million, operating loss was $0.2 million and net loss was $4.9 million, or ($.15) per share. In the third quarter of 1997, revenues were $53.0 million, operating profit was $7.6 million and net income was $3.6 million, or $.11 per share.

The difference in 1998 and 1997 third quarter results is primarily attributable to a delay in the harvest season, which was caused by wet and cool spring weather conditions. Therefore, a significant portion of the Company's revenues and operating profit, typically recognized in the third quarter, will be recognized in the fourth quarter of 1998.
The majority of the Company's annual revenues are generated by the harvest and sale of crops produced by its wholly owned subsidiary, Sun World International, Inc., ("Sun World"). Those revenues are primarily recognized between June and October, while fixed overhead costs are incurred throughout the year. Therefore, the Company's three- and nine-month results are not indicative of the results of operations for a full fiscal year.

For the nine months ended September 30, 1998, revenues were $73.7 million, operating loss was $2.0 million and net loss was $15.1 million, or ($.46) per share. For the nine months ended September 30, 1997, revenues were $83.5 million, operating profit was $4.4 million and net loss was $7.3 million, or ($.30) per share.

Earnings before income taxes plus interest expenses, depreciation and amortization (EBITDA) contributed from Sun World were $7.3 million for the nine months ended September 30, 1998, compared to $12.7 million for the nine months ended September 30, 1997.

Additionally, the Company announced that American SunMelon, a 50/50
partnership between Sun World Brands, a wholly-owned subsidiary of Sun World, and American Seedless Corporation, sold the majority of its assets to Novartis Seeds, Inc., for $35.0 million in cash on October 27, 1998. In conjunction with this sale, Sun World received an initial distribution of $15.2 million from the partnership. American SunMelon primarily focuses on the production and distribution of watermelon seeds throughout North America, Europe and Australia.

The Company expects that the distribution generated from the sale of American SunMelon assets, when combined with fourth quarter results, will positively impact overall results for 1998 when compared to 1997.

As previously reported, the Company and the Metropolitan Water District of Southern California ("Metropolitan") have initiated the environmental review process for a groundwater storage and dry-year supply program ("the Program") at the Company's Cadiz, California property. In preparing for the Environmental Impact Report/Environmental Impact Statement, Metropolitan and the Company have commenced with a variety of hydrological and engineering tasks in order to determine the optimum design of program facilities, and are pleased with the progress to date.

Founded in 1983, Cadiz Inc., is a publicly held agricultural and water development 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.

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. 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 include price and yield fluctuations in the agricultural operations, seasonality, timing and terms of various approvals required to complete the Program, and other factors and considerations detailed in the Company's Securities and Exchange Commission filings.

CADIZ INC.
FINANCIAL SUMMARY

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