Basin Water Announces Patent for High-Efficiency Nitrate Removal System; Cutting-Edge Technology Drives Costs Down for Nitrate Treatment.

RANCHO CUCAMONGA, Calif. -- Basin Water Inc. announced today that it has received a U.S. patent for its high-efficiency Ion Exchange System for removing nitrate from water. The patent, No. 6,878,286, was issued to Peter L. Jensen, Gerald A. Guter and Dan Ziol of Basin Water. In broad terms, the patent covers the use of a multiple bed ion exchange system controlled by a computer specifically for the removal of nitrate from water. "This is one of the most important advances in the use of ion exchange technology for nitrate removal since the introduction of nitrate selective resins. Significantly, the inventor of nitrate selective resins, Dr. Gerald Guter, was also one of the co-inventors of this patent," stated Basin Water President Peter Jensen.

Nitrate contamination of water is a worldwide problem caused by the use of fertilizers for agriculture and septic systems in the absence of centralized wastewater treatment. Nitrate is an acute toxin, and both the U.S. Environmental Protection Agency (USEPA) and the World Health Organization (WHO) have set stringent limits on nitrate in drinking water.

The system described by the patent allows Basin Water to package a cost-effective, turn-key water treatment solution in a standard shipping container, deliverable to a client site in a short period of time. The system can also be designed for installation into a building. The Basin Water Ion Exchange (BWiX) treatment approach provides waste rates in the 0.1 to 0.5 percent range, compared to standard ion exchange treatment with waste rates ranging from 1 to 7 percent of treated flow. The automated control system allows for remote operation with minimal operator involvement. Superior uptime (in excess of 98 percent) and unique multi-vessel design approach assure the system will be available for use with minimal downtime and maintenance burden to the owner or operator.

Jensen stated: "We are extremely pleased to receive Patent Office recognition of the uniqueness of our operating system. The benefits of this system to our clients are a dramatic reduction in waste generated during the ion exchange regeneration process, simplified operator use and a significant cost savings due to the high efficiency of the system." The patent provides broad coverage for Basin Water's BWiX systems, assuring market clarity for its clients and future customers, while protecting the company's unique intellectual property. "We have been very successful to date in providing water treatment services for customers utilizing this technology for the removal of nitrate contaminated groundwater throughout the west and with the strength of this patent, look to expand this success nationally," Jensen added.

The high-efficiency Basin Water system will allow many contaminated wells, which are presently unusable, to be returned to service, creating new sources of drinking water. This is important due to the decreasing supply of clean water both in the U.S. and around the world.

Many utilities, cities and special districts rely on Basin Water every day to help them meet their clean water needs. Basin Water has over 30 million gallons per day of installed capacity using this patented design. Unit capacities range from 300 gpm (gallons per minute) to over 2,000 gpm. With headquarters in Rancho Cucamonga, Basin Water (www.basinwater.com) is a privately held water treatment and services company with experienced professionals dedicated to delivering cost-effective and reliable water treatment systems and services to municipal, industrial, and governmental customers worldwide.

Important Disclaimer. Basin Water is a privately held corporation not listed on any securities exchanges. In addition to historical information, this press release may contain "forward-looking statements" that involve risks and uncertainties. The statements contained herein that are not historical facts (including without limitation statements to the effect that Basin Water or its management "believes," "expects," "anticipates," "plans," or other similar expressions) and statements related to revenues, earnings, backlog, or other financial information or results are forward-looking statements. Such forward-looking statements are not guarantees of future performance and represent our estimates and assumptions only as of the date hereof. These statements reflect our current views with respect to future events or developments and their potential effects on Basin Water, and are based on assumptions and subject to known and unknown risks, uncertainties and other factors, many of which are outside of our control. Should one or more of such risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual results, performance or achievements may differ materially and adversely from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include but are not limited to: lengthy sales cycles for major customers, the risk that government regulatory agencies may raise or eliminate maximum contaminant levels for contaminants found in potable water, the risk of suffering reduced profits or losses as a result of intense competition, the risk that changes in energy prices and taxes may reduce Basin Water's profits, the risk that governmental authorities could terminate or modify some of Basin Water's contracts, the risk that Basin Water's compliance with environmental laws may become more costly in the future, the risk that economic or political instability or currency exchange rate fluctuations may negatively affect Basin Water's financial results, and the risk that Basin Water may incur environmental liability in connection with its past, present and future operations. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Basin Water does not undertake, nor does it have, any obligation to provide updates or to revise any forward-looking statements.