Santa Monica, CA – Cadiz Inc. (Nasdaq: CLCI), today reported substantially improved operating results for the third quarter ended September 30, 2002. Cadiz operating profit was $9.0 million, and net income applicable to common stock was $3.2 million for the third quarter of 2002, excluding a $4.1 million non-cash charge for the removal of approximately 1,900 acres of underperforming crops. By comparison, in the third quarter of 2001, operating profit was $0.0 million, and net loss applicable to common stock was $5.0 million, excluding a $0.2 million non-cash charge for the removal of underperforming crops.

Cadiz’ wholly-owned subsidiary, Sun World International, Inc., generated earnings before income taxes plus interest expense, depreciation and amortization (EBITDA) and before the non-cash charge for removal of underperforming crops of $13.9 million for the third quarter of 2002 compared to $5.3 million for the third quarter of 2001. The improved EBITDA is primarily attributable to the performance of our proprietary products, improved market conditions as normal production windows returned for Sun World’s key growing areas, and the contribution from crops that turned commercial in 2002 out of our crop development program. For the nine months ended September 30, EBITDA before removal of underperforming crops was $17.1 million for 2002 compared to $5.0 million excluding non-recurring compensation expense for 2001.

"We are very pleased with the underlying operating performance of the Sun World business for the quarter," said Tim Shaheen, chief executive officer of Sun World. "We believe 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 unique position of strength in this segment of the industry."

Revenues for the third quarter increased to $64.3 million versus $48.7 million in the prior year. Operating profit was $4.9 million for the 2002 third quarter compared to an operating loss of $0.2 million in the 2001 third quarter. Net loss applicable to common stock for the 2002 third quarter was $1.0 million, or ($0.03) per share compared to $5.3 million or ($0.15) per share for the third quarter of 2001.

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 nine 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 nine months ended September 30, 2002, revenues were $95.1 million, operating profit was $2.6 million and net loss applicable to common stock was $14.7 million or ($0.41) per share. The 2002 nine-month net loss included $14.6 million of depreciation, amortization and non-cash charges for interest and removal of underperforming crops. By comparison, for the nine months ended September 30, 2001, revenues were $76.4 million, operating loss was $2.5 million and net loss applicable to common stock was $17.5 million or ($0.49) per share. The 2001 nine-month net loss included $9.5 million of depreciation, amortization and non-cash charges for interest and removal of underperforming crops.

As previously reported on October 8, 2002, the Board of Directors of the Metropolitan Water District of Southern California narrowly voted to reject the terms and conditions of the right-of-way grant and to not proceed with the Cadiz Groundwater Storage and Dry-Year Supply Program contrary to their Staff’s recommendation. The terms and conditions of the right-of-way grant issued by the U.S. Department of Interior was part of their Record of Decision issued upon approval of the Final Environmental Impact Statement for the Cadiz Program in August 2002, the final step in the federal environmental review process for the Cadiz Program.

Irrespective of Metropolitan’s actions, Southern California’s need for water storage and supply programs has not abated. Cadiz management believes there are several different scenarios to maximize the value of this water resource, all of which are under current evaluation. These alternatives may have different anticipated capital requirements and implementation periods than the previously disclosed contractual arrangements for the Cadiz Program. Consequently, the Company has taken prompt action to extend the maturity dates of its outstanding debt at the Cadiz level.

As previously reported, on October 15, 2002, Cadiz entered into an agreement with ING Capital LLC for a three-year extension of the maturity date of its outstanding $35 million of senior secured loans with ING to January 31, 2006 subject to execution of definitive documentation. In addition, Cadiz entered into an agreement with the holders of the $12.5 million of its preferred stock to extend the mandatory redemption date until July 2006.

Sun World will require its annual revolving credit facility for the 2003 growing season. Sun World estimates that it will also require approximately $15 million in additional financing beyond that available under the revolving credit facility to bridge the temporary funding gap to fund farming expenses in the April to June timeframe. Sun World believes it will be able to borrow these additional monies on commercially reasonable terms if it is able to reach certain arrangements with the holders of its $115 million First Mortgage Notes. Sun World is currently in discussions with holders of the First Mortgage Notes to allow for this new funding.

Cadiz management will host its regular quarterly conference call shortly after the conclusion of these financing discussions.

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, the status of the Cadiz Program, and the financing activities of the Company. 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, yield, and seasonality fluctuations in its agricultural operations, the Company’s ability to maximize value for Cadiz land and water resources, the Company’s ability to obtain extensions on currently outstanding debt, the Company’s ability to obtain new financings as needed to meet our ongoing working capital needs, and other factors and considerations detailed in Cadiz’ Securities and Exchange Commission filings.

CADIZ INC.
FINANCIAL SUMMARY

CONSOLIDATED BALANCE SHEET INFORMATION

     $       3,057

$       1,458

     $     13,196

$     11,758

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