Los Angeles, CA -- Cadiz Inc., (Nasdaq:CDZI), is pleased to announce today the following:

        ·           The completion of a new five-year capital facility
      ·           Important progress in our large groundwater storage project, the Cadiz Valley                   Groundwater Storage Program
        ·           Plans to explore land development proposals for our approximately 45,000 acres                   of property in San Bernardino County 

Cadiz announces today that we have completed an agreement with Peloton Partners LLP (“Peloton”) to provide the Company with a new long-term capital facility of $36.375 million.  Peloton currently owns approximately 9% of the Company’s outstanding common shares, and we welcome the expansion of this long-term relationship.

         The Company has entered into this facility in order to retire our existing secured debt with ING Capital LLC of approximately $26 million and provide the Company with additional working capital. 

        The infusion of this additional working capital gives the Company financial security that will be critical in meeting our long term objectives through further development of our water and real estate assets.  The Company will continue to work to complete the final entitlement process necessary to implement the Cadiz Valley Groundwater Storage Program and will also further direct the development potential of our 45,000 acres of real estate in San Bernardino County.  

       In this regard, the Company is pleased to report that the County of San Bernardino has agreed to serve as the California Environmental Quality Act (CEQA) lead agency for the completion of the environmental review of the Cadiz Valley Groundwater Storage Program and to issue any outstanding permits required under California law once the review is completed. 

         As the Groundwater Storage Program utilizes only a small portion of our total landholdings, we are also evaluating compatible real estate development of our Cadiz Valley and Piute properties.   Given the tremendous growth occurring in the region, we believe that there is now significant value in the Company’s real estate holdings separate and independent of the Company’s water programs. 

         San Bernardino County and neighboring Riverside County are two of the fastest growing counties in the United States, and this development has strongly influenced the value of our assets.   Population influx and rising housing demand has significantly elevated real estate prices in all of the desert communities surrounding the Company’s properties, including Laughlin, Lake Havasu City, Kingman, Pahrump, Barstow, Victorville, and the Coachella Valley. 

        Comparable land prices for all of these areas has led the Company to conclude that the value of our landholdings, separate and apart from the value of our Groundwater Storage Program, now comfortably exceeds $100 million.   As the availability of large contiguous parcels and significant water supplies diminishes in this region, we expect our landholdings and water resources to continue to grow in value.

 Details of the new financing-

         Under the terms of the new facility, Peloton invested $36.375 million in a five year zero coupon secured convertible term loan with an interest rate of 5% per annum for the first three years of the loan and 6% thereafter.   At the lender’s option, $10 million of principal and accrued interest thereon may be converted into Cadiz common stock at $18.15 per share, and $26.375 million of principal and accrued interest thereon is convertible at $23.10 per share.  These conversion prices are set for the entire term of the loan.

         Founded in 1983, Cadiz Inc. is a publicly held water resource management firm.  The Company owns significant landholdings with substantial water resources throughout California.  Further information on the Company can be obtained by visiting our 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 and the financing activities of the Company.  Although the Company believes that the expectations reflected in our 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 the Company’s ability to maximize value for Cadiz land and water resources, the Company’s ability to obtain new financing as needed, and other factors and considerations detailed in the Company’s Securities and Exchange Commission filings.

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