CADIZ REPORTS SECOND QUARTER RESULTS
Operating Profit Doubles In Quarter

Santa Monica, CA -- Cadiz Inc. (Nasdaq: CLCI)  today reported results for the second quarter ended June 30, 1999.  Revenues for the quarter were $26.2 million, operating profit was $2.7 million and net loss was $1.9 million, or ($.06) per share.  The 1999 second-quarter net loss amount included $2.0 million of depreciation, amortization and non-cash interest charges. By comparison, in the second quarter of 1998, revenues were $22.6 million, operating profit was $1.4 million and net loss was $3.1 million, or ($.09) per share.  The 1998 second-quarter net loss amount included $1.7 million of depreciation, amortization and non-cash interest charges.

The increase in operating profit for the second quarter of 1999, compared to the same period in 1998, is attributable to newly planted crops reaching commercial production and favorable market conditions for the Company’s primary crop varieties, which have continued throughout July.

The majority of the Company’s annual revenues are currently 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 six-month results are not indicative of the results of operations for a full fiscal year.  Once the Company’s water development programs are operational, revenues are not expected to be as seasonal in nature.

For the six months ended June 30, 1999, revenues were $32.8 million, operating loss was $0.3 million and net loss was $9.3 million, or ($.27) per share.  The 1999 six-month net loss amount included $3.3 million of depreciation, amortization and non-cash interest charges. For the six months ended June 30, 1998, revenues were $28.1 million, operating loss was $1.8 million and net loss was $10.3 million, or ($.31) per share.  The 1998 six-month net loss amount included $2.8 million of depreciation, amortization and non-cash interest charges.

Earnings before income taxes plus interest expense, depreciation and amortization (EBITDA) contributed from Sun World rose to $4.0 million for the six months ended June 30, 1999, compared to $2.0 million for the six months ended June 30, 1998.

The Company is also pleased to report consistent progress with the Cadiz Groundwater Storage & Dry-Year Supply Program (“Program”), the cooperative water management effort between Cadiz and the Metropolitan Water District of Southern California.  A number of significant milestones within the environmental review process have been achieved in the past few months. Most notably, all field studies and surveys analyzing environmental resources have now been completed, the first phase of public meetings have been held, and the Program continues to move forward on schedule as anticipated

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

CADIZ INC.
Financial Summary

###

Return to Press Releases