Basin Water to Supply High-Efficiency Nitrate Removal System to Port of Walla Walla, WA

Basin Water, Inc. (NASDAQ:BWTR) announced today that it has received approval for the installation of a high-efficiency ion exchange system to remove nitrate at a new potable water source for the Port of Walla Walla, WA. The contract marks the first Basin Water installation in the State and is part of the company’s announced plans to grow operations nationwide while also developing new technologies and applications for their water treatment technology+services business. According to Mike Stark, President and Chief Executive Officer of Basin Water, the need for effective treatment technology with manageable costs and total reliability faces communities throughout the United States. "Delivering adequate supplies of high quality drinking water is one of the biggest challenges our communities face as they look to sustain growth through a safe and reliable source of water. The treatment of groundwater for use in drinking water systems is one of the best solutions for meeting that challenge, and we at Basin Water are excited to bring our ‘worry-free water’ approach to the State of Washington,” he said. Basin Water’s high-efficiency nitrate removal unit will serve the new water system designed by Anderson Perry & Associates for the 122 acre Burbank Business Park located at the confluence of the Snake and Columbia Rivers. Basin Water is supplying the system as a subcontractor to Apollo Inc., the general contractor for the project. The installation is expected to be brought online by June of this year and will remove nitrate to levels below 7 parts per million (ppm) nitrate as nitrogen. The system will deliver up to 650,000 gallons of water per day (450 gpm) at peak flow rates. The unit is modular in design, and its treatment capacity can be easily increased to satisfy increased demand. Nitrates are ionic substances widely found in the environment as byproducts of fertilizers, septic systems and groundwater recharge and can migrate easily into drinking water supplies. Once ingested, nitrates are converted into nitrites, which react chemically within the digestive and circulatory systems and have been linked to a number of cancers, diseases and methemoglobinemia, or "blue baby syndrome.” Nationally, the EPA has established a maximum contaminant level (MCL) of 10 ppm nitrate as nitrogen as part of the Safe Drinking Water Act. Nitrate is recognized by the United States Geological Survey as one of the most widespread contaminants of shallow groundwater across the United States, particularly in agricultural areas. According to Orlando Carreño, Vice President, Western Region of Basin Water, this first project in the state of Washington bolsters Basin Water’s regional presence as a provider of water treatment technology. "Basin Water offers some of the most reliable and flexible water treatment solutions available, and we are excited by the prospect of being able to bring those solutions to new communities in the Western U.S.,” Carreño said. "We look forward to working closely with the Port of Walla Walla in getting this system running and assuring a cost-effective, compliant source of drinking water for the people they serve,” he concluded. About Basin Water Basin Water, Inc. is a provider of reliable, long-term process solutions for a range of clients, which includes designing, building and implementing systems for the treatment of contaminated groundwater, the treatment of wastewater, waste reduction and resource recovery. Basin Water employs treatment technologies including its own proprietary, scalable ion-exchange wellhead treatment system, along with a host of other treatment technologies designed to meet customer needs in an efficient, flexible and cost effective manner. Additional information may be found on the company's web site: www.basinwater.com. Forward Looking Statements This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including expectations relating to future revenues and income, the company's ability to gain new business and control costs, involve risks and uncertainties, as well as assumptions that, if they prove incorrect or never materialize, could cause the results of the company to differ materially from those expressed or implied by such forward-looking statements. Actual results may differ materially from these expectations due to various risks and uncertainties, including: the company's limited operating history, significant operating losses associated with certain of the company's contracts, the company's ability to identify and consummate other acquisition opportunities that improve the company's revenues and profitability, significant fluctuations in its revenues from period to period, its ability to effectively manage its growth, the success of the company's strategic partners, its long sales cycles, market acceptance of its technology, the geographic concentration of its operations and customers, its ability to meet customer demands and compete technologically, the company's ability to protect its intellectual property, regulatory approvals of the company's systems, changes in governmental regulation that may affect the water industry, particularly with respect to environmental laws, the company's ability to attract and retain qualified personnel and management members and the company's ability to manage its capital to meet future liquidity needs and the timing of the company's stock repurchases, if any. More detailed information about these risks and uncertainties are contained in the company's filings with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended December 31, 2006 and subsequent Quarterly Reports on Form 10Q. The company assumes no obligation to update these forward-looking statements to reflect any change in future events.