Cadiz Reports Third-Quarter Results.

Business Editors

SANTA MONICA, Calif.--(BUSINESS WIRE)--Nov. 14, 2000

Cadiz Inc. (Nasdaq: CLCI) today reported results for the third quarter ended September 30, 2000. Revenues for the quarter were $55.4 million, operating profit was $4.6 million and net loss was $0.3 million, or ($.01) per share. The 2000 third-quarter net income amount included $5.0 million in charges for depreciation, amortization and non-cash interest. By comparison, in the third quarter of 1999, revenues were $60.6 million, operating profit was $7.4 million and net income was $3.0 million, or $.09 per share. The 1999 third-quarter net income amount included $5.5 million of depreciation, amortization and non-cash interest charges.

The majority of the Company's annual revenues are currently generated by the harvest and sale of crops produced by its wholly owned subsidiary, Sun World International Inc. ("Sun World"). Those revenues are primarily recognized between June and October, while fixed overhead costs are incurred throughout the year. Therefore, the Company's three- and nine-month results are not indicative of the results of operations for a full fiscal year. Once the Company's water development programs are operational, revenues are not expected to be as seasonal in nature.

The decrease in operating profit for the third quarter of 2000, compared to the same period in 1999, is primarily attributable to less than favorable market conditions for farming operations. Specifically, an oversupply of product within the agricultural industry has created significant pressure on pricing.

"Oversupply across the sector has generally led to increased pressure on commodity crop prices and reduced returns," said Tim Shaheen, chief executive officer of Sun World International.

"However, Sun World's proprietary products continue to outperform typical commodity crops," added Shaheen. "Accordingly, the company has continued to shift its permanent crop development to proprietary crops and further leverage these products through international licensing arrangements."

For the nine months ended September 30, 2000, revenues were $90.2 million, operating loss was $1.1 million and net loss was $15.5 million, or ($.44) per share. The 2000 nine-month net loss amount included $8.8 million of depreciation, amortization and non-cash interest charges. For the nine months ended September 30, 1999, revenues were $93.4 million, operating profit was $7.1 million and net loss was $6.3 million, or ($.18) per share. The 1999 nine-month net loss amount included $8.8 million of depreciation, amortization and non-cash interest charges.

Earnings before income taxes, interest expense, depreciation and amortization (EBITDA) contributed from Sun World were $8.1 million for the nine months ended September 30, 2000, compared to $17.7 million for the nine months ended September 30, 1999.

As detailed in an October 19, 2000 press release, the Company announced that the Metropolitan Water District of Southern California (Metropolitan) and the U.S. Bureau of Land Management (BLM), in cooperation with the U.S. Geological Survey and the National Park Service, have published a Supplement to the previously released Draft Environmental Impact Report/Environmental Impact Statement for the Cadiz Groundwater Storage & Dry-Year Supply Program. A primary component of the Supplement is a comprehensive groundwater monitoring and management plan, which is designed to ensure the safe operation of the aquifer system and protect surrounding natural resources.

After the close of the public comment period for the Supplement, a Final Environmental Impact Report/Environmental Impact Statement will be compiled and brought to Metropolitan and the BLM for final action.

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. 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 include price and yield fluctuations in the agricultural operations, seasonality, 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, Form 10-Q and other Securities and Exchange Commission filings.

                              Cadiz Inc.
                           Financial Summary

                                      Three Months      Nine Months
                                     Ended Sept. 30    Ended Sept. 30
                                      2000    1999     2000     1999

$ in thousands except per share data
Revenues                             55,376  60,644   90,240   93,397
Operating profit (loss)               4,593   7,427   (1,065)   7,121
Interest expense, net                 4,935   4,434   14,401   13,457
Net income (loss)                      (342)  2,993  (15,466)  (6,336)
Basic net income (loss) per
 common share                          (.01)    .09     (.44)    (.18)
Basic weighted average shares
 outstanding                         35,364  35,036   35,290   34,528