Pure Cycle Corporation Announces Third Quarter Fiscal 2007 Financial Results


Pure Cycle Corporation (the "Company") (NASDAQ: PCYO) announced today it posted a net loss of approximately $5.2 million ($.28 per share) on revenues of approximately $178,100 for the nine months ended May 31, 2007. This compares to a net loss of approximately $713,700 ($.05 per share) on revenues of approximately $188,200 for the nine months ended May 31, 2006. The increased loss is mainly attributable to the following:

    --  Approximately $3.5 million of imputed interest expense related
        to the "Tap Participation Fees payable to HP A&M," which the
        Company began expensing on September 1, 2006 and described in
        greater detail in the Company's Form 10-Q filed with the SEC

    --  Approximately $265,000 of additional depreciation and
        depletion charges related mainly to the depreciation of the
        Arkansas River Valley assets and the assets constructed to
        provide water to the Arapahoe County Fairgrounds which were
        not being depreciated in fiscal 2006;

    --  Approximately $224,000 of expenses related to stock options
        recorded pursuant to SFAS 123(R);

    --  Approximately $188,000 of additional expenses related to
        payment of the Fort Lyon Canal Company water assessment fees,
        which is explained in greater detail in the May 31, 2007 Form

    --  Approximately $186,000 of additional professional fees related
        to the High Plains asset acquisition and the SEC review
        process; and

    --  Approximately $63,000 of additional franchise fees payable to
        the State of Delaware which are a result of the increased
        asset values due to the High Plains asset acquisition on
        August 31, 2006.

The Company will host a conference call to discuss these results on Thursday July 12, 2007. Details of the call and additional financial highlights are below.

                         FINANCIAL HIGHLIGHTS
                   Unaudited Results of Operations

                                             Nine months ended May 31,
                                                 2007         2006
                                             ------------ ------------
Total revenues                                   $178,100     $188,200
Total cost of revenues
  Increase due mainly to approximately
   $65,000 of depletion related to the
   Arapahoe County Fairgrounds water
   system                                       (121,100)     (45,800)
                                             ------------ ------------

Gross margin                                       57,000      142,400

Total operating expenses                      (1,858,800)    (984,700)
Other (expense) income
  Includes imputed interest of $3.5
   million and $0                             (3,355,600)      128,600
                                             ------------ ------------

Net loss                                     $(5,157,400)   $(713,700)
                                             ============ ============

Weighted average shares outstanding (basic
 and diluted)                                  18,399,887   14,625,298
                                             ============ ============
Loss per share                                    $(0.28)      $(0.05)
                                             ============ ============
                       Financial Position Data

                                       May 31, 2007   August 31, 2006
                                     ---------------- ----------------
Current assets                             $1,591,500       $3,121,400
                                     ---------------- ----------------
Total assets                             $106,264,100     $108,833,900
                                     ---------------- ----------------

Current liabilities                          $183,200         $380,100
                                     ---------------- ----------------
Total liabilities                         $56,516,800      $54,169,200
                                     ---------------- ----------------

Total stockholders' equity                $49,747,300      $54,664,700
                                     ---------------- ----------------

What:           Third quarter fiscal 2007 earnings call
When:           July 12, 2007 at 2:00 pm Mountain
To listen:      Click on the link posted on the Company's website:
                Log-on 5 minutes early in case downloads are required.
Call in Number: Toll free: (888) 680-0894
Passcode:       72170707

The call will be available for replay until 9:59 p.m. on
July 19, 2007:
Toll free:      (888) 286-8010
Passcode:       51171672
A replay will be available on the Company's Website through
November 15, 2007.

For questions, please contact Investor Relations
at info@purecyclewater.com.

Company Information

Pure Cycle owns water assets in several river basins in the State of Colorado as well as certain aquifers in the Denver, Colorado metropolitan area. Pure Cycle provides water and wastewater services to customers located in the Denver metropolitan area including the design, construction, operation and maintenance of water and wastewater systems.

Additional information including our recent press releases and fiscal year ended August 31, 2005 Annual Report are available at www.purecyclewater.com, or you may contact our President, Mark W. Harding, at 303-292-3456.

Source: Pure Cycle Corporation