Santa Monica, CA – Cadiz Inc. (Nasdaq: CLCI), today reported results for the second quarter ended June 30, 2002. Cadiz’ wholly-owned subsidiary, Sun World International, Inc., generated EBITDA (earnings before income taxes plus interest expense, depreciation and amortization) of $4.0 million for the second quarter of 2002, compared to $2.5 million for the second quarter of 2001. The improved EBITDA for the second quarter of 2002 is primarily attributable to improved market conditions as normal production windows returned for Sun World’s key growing areas for 2002. Based upon the operating results through July and management’s current expectations for market conditions for the remainder of the year, the Company forecasts EBITDA for Sun World in excess of $20 million for 2002.

"Sun World’s performance to date and our outlook for the balance of the year is very positive," said Tim Shaheen, chief executive officer of Sun World. "Our continued emphasis on redeploying capital from marginal commodity production to the development, licensing, and delivery of consumer preferred proprietary varieties of fruit puts us in a position of strength in this segment of the industry."

Cadiz revenues for the quarter were $23.1 million, operating profit was $0.3 million, and net loss applicable to common stock was $6.0 million, or ($.16) per share. The 2001 second-quarter net loss amount included $3.4 million of depreciation, amortization and non-cash interest charges. Operating profit for the 2002 quarter was negatively impacted by $0.8 million of professional fees related to the KADCO combination that was not completed. By comparison, in the second quarter of 2001, revenues were $20.4 million, operating loss was $0.1 million, and net loss applicable to common stock was $5.0 million or ($.14) per share. The 2001 second-quarter net loss amount included $2.4 million of depreciation, amortization and non-cash interest charges.

The majority of Cadiz’ annual revenues are currently generated by the harvest and sale of crops produced by Sun World. Those revenues are primarily recognized between June and October, while fixed overhead costs are incurred throughout the year. Therefore, Cadiz’ quarterly and six month results are not indicative of the results of operations for a full fiscal year. Once Cadiz’ water development programs are operational, revenues are not expected to be as seasonal in nature.

For the six months ended June 30, 2002, revenues for Cadiz were $30.8 million, operating loss was $2.2 million and net loss attributable to common stock was $13.8 million, or ($.38) per share. The 2002 six-month net loss amount included $5.2 million of depreciation, amortization and non-cash interest charges. For the six months ended June 30, 2001, revenues were $27.7 million, operating loss was $2.4 million and net loss attributable to common stock was $12.2 million, or ($.34) per share. The 2001 six-month net loss amount included $3.9 million of depreciation, amortization and non-cash interest charges. The six-month 2001 results included $2.4 million of income from non-recurring items. The non-recurring items, which occurred in the first quarter of 2001, were a $7.9 million special litigation recovery from the settlement of Cadiz’ claims against Waste Management Inc. related to its proposed Rail-Cycle landfill and an offsetting $5.5 million non-cash compensation charge.

In April 2001, the Board of Directors of Metropolitan Water District of Southern California approved definitive economic terms and responsibilities for the Cadiz Groundwater Storage and Dry-Year Supply Program (Cadiz Program). The definitive terms will serve as the basis for a final agreement to be executed between Metropolitan and Cadiz. Execution of a final agreement will be contingent upon and subject to completion of the environmental review process.

In October 2001, Metropolitan and the U.S. Bureau of Land Management (BLM), in cooperation with the U.S. Geological Survey and the National Park Service, issued the Final Environmental Impact Report/Environmental Impact Statement for the Cadiz Program. In addition, the U.S. Fish and Wildlife Service issued a biological opinion in March 2002 which concluded that the Cadiz Program fully complies with the Endangered Species Act and will not adversely impact plants and wildlife. The next step in the environmental review process is completion of final actions by the U.S. Bureau of Land Management through the issuance of Records of Decision which is anticipated to occur shortly. The issuance of the Records of Decision will be followed by final actions by Metropolitan.

Cadiz management will host an earnings conference call today at 8:00 a.m. Pacific Daylight Time/11:00 a.m. Eastern Daylight Time. To hear a live webcast of the conference call, please visit Cadiz’ web site at www.cadizinc.com and click on "Investor Relations". The call will be archived on Cadiz’ web site for one week.

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. Cadiz owns significant landholdings with substantial water resources throughout California. Further information on Cadiz and Sun World can be obtained by visiting Cadiz’ 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 Cadiz and Sun World and the successful implementation of the Cadiz Program. Although Cadiz 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 Cadiz’ forward-looking statements include price and yield fluctuations in its agricultural operations, seasonality, and other factors and considerations detailed in Cadiz’ Securities and Exchange Commission filings.

CADIZ INC.
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