Cadiz Program Fully Complies With Endangered Species Act; US Fish and Wildlife Service Issues Biological Opinion.

Business Editors

SANTA MONICA, Calif.--(BUSINESS WIRE)--April 4, 2002

Cadiz Inc. (Nasdaq: CLCI) today reported that the U.S. Fish and Wildlife Service has released a biological opinion, which concludes that the Cadiz Groundwater Storage and Dry-Year Supply Program fully complies with the Endangered Species Act and will not adversely impact the desert tortoise. In fact, the compensation program lands will benefit this threatened species. No other habitat or listed species, in or surrounding the Cadiz Program area, are considered to be impacted by the USFWS.

The 27-page opinion definitively concludes USFWS analysis of potential impacts to threatened or endangered species. It addresses concerns raised during the comment periods of the Environmental Impact Report/Environmental Impact Study (EIR/EIS). The only listed species identified by the USFWS that could potentially be impacted by the Cadiz Program is the desert tortoise. The analysis concludes, "the construction, maintenance, and operation of the conveyance pipeline, well field and spreading basins will not appreciably reduce the ability of the desert tortoise to survive and recover."

The opinion notes that the pipeline alignment is in low-density desert tortoise habitat, and that mitigation lands -- which will be deeded to the Bureau of Land Management as part of implementing the Cadiz Program -- are located in "critical" habitat. The report continues, "(t)herefore, implementation of the proposed action would include acquisition and management of compensation lands which support desert tortoises and would result in beneficial effects on this species."

"The program is environmentally sensitive to the habitat and the species in the area. The U.S. Fish and Wildlife opinion confirms these facts," said Marv Shaw, Cadiz' Vice President, Resource Management.

The biological opinion must precede the issuance of the Record of Decision (ROD) which is expected shortly.

The Cadiz Program, a public/private partnership between Cadiz and Metropolitan, will help Metropolitan maximize the efficiency of its Colorado River Aqueduct and provide a reliable, high quality water supply for the 17 million Southern Californians it serves. The Cadiz Program is cited as a key component in California's official plan to reduce its draw on the Colorado River. The 50-year partnership will store surplus Colorado River water supplies, up to one million acre-feet at any one time, beneath the Company's agricultural landholdings in the eastern Mojave Desert. During dry years, the stored Colorado River water and indigenous groundwater will be extracted, in accordance with the terms and conditions of a comprehensive Groundwater Monitoring and Management Plan, and returned for use within Metropolitan's service area. The program still awaits the issuance of the Record of Decision by the Bureau of Land Management and final approval from the Metropolitan Board.

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. The Company owns significant landholdings with substantial water resources throughout California. 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 and the successful implementation of the Cadiz Program. 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 the timing and terms of various approvals required to complete the Program, and other factors and considerations detailed in the Company's most recent Form 10-K, and other Securities and Exchange Commission filings.