CADIZ REPORTS FOURTH QUARTER RESULTS
Company Records $7.7 Million Of Net Income For the Quarter

Santa Monica, CA -- Cadiz Inc., (Nasdaq: CLCI) today reported results for the fourth quarter ended December 31, 1998. Revenues were $32.8 million, operating profit was $12.1 million and net income was $7.7 million, or $.23 per share. By comparison, in the fourth quarter of 1997, revenues were $16.7 million, operating profit was $2.7 million and net loss was $1.2 million, or ($.04) per share.

For the year ended December 31, 1998, revenues were $106.5 million, operating profit was $10.1 million and, after interest charges, net loss was $7.5 million, or ($.23) per share. The 1998 operating profit amount was net of depreciation and amortization charges of $8.7 million. In comparison, for the year ended December 31, 1997, revenues were $100.2 million, operating profit was $7.1 million and net loss applicable to common stock was $9.8 million, or ($.33) per share. The 1997 operating profit amount was net of depreciation and amortization charges of $7.7 million.

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").

Revenues for the 1998 fourth quarter included $9.6 million related to the initial cash distribution received from the sale of the majority of assets of American SunMelon, a 50/50 partnership between Sun World Brands, a wholly owned subsidiary of Sun World, and American Seedless Corporation. In addition, wet and cool spring weather conditions experienced throughout California delayed the harvest season, causing a significant portion of the Company's revenues, which typically would have been recognized in the third quarter, to be recognized in the fourth quarter of 1998.

Earnings before income taxes plus interest expense, depreciation and amortization (EBITDA) contributed from Sun World were $22.8 million for the year ended December 31, 1998, compared to $17.8 million for the year ended December 31, 1997.

As reported in the Company's "Letter to Shareholders", dated January 29, 1999, significant progress has been achieved in moving forward with implementation of the Cadiz Groundwater Storage and Dry-Year Supply Program, the cooperative water management effort between Cadiz and the Metropolitan Water District of Southern California (Metropolitan). During the fourth quarter of 1998, Cadiz and Metropolitan jointly appropriated $4 million to fund environmental documentation, engineering, and hydrological work. Program milestones include the launch of the environmental review process, construction of a pilot spreading basin project that will model and further analyze the storage and extraction of water, and the design and optimization of capital facilities that will move water to and from the Cadiz property.

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 in Southern California with substantial underlying water resources. 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. 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.

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