The transfer from agricultural conservation to an urban retailer was initiated by Western Water Company, on behalf of the sellers.

The water transferred through Western Water Company arose from irrigation district-wide conservation efforts by Sutter Mutual and Reclamation District 108. In a series of complex petitions and hearings, instigated by Western Water Company, the State Water Resource Control Board (SWRCB) approved the transfer. The SWRCB orders approved several potential places of use for the conserved water, thus providing more marketing flexibility than with prior transfers.

"This process has required over nine months of thoughtful collaboration with our partners at Sutter Mutual, Reclamation District 108, and Contra Costa Water District," explained Michael Patrick George, president & CEO of Western Water Company.

In spite of the inherent complexity of this effort, Western Water Company also overcame multiple objections and requirements of the relevant regulatory agencies.

"We are proud to have completed this transfer of water derived from environmentally appropriate water conservation practices," George said. "Although this is a relatively small volume of water, we look forward to originating and selling more commercial quantities in the near future, using our proprietary capabilities, and working with our strategic partners. We believe that farm communities can help their urban neighbors by making conservation water available, but only under appropriate controls and with the necessary environmental and economic safeguards."

In a related transaction, Contra Costa Water District purchased an option to buy up to 8,000 acre feet of water next year based on a price matrix reflecting different possible hydrological conditions.

"We respect Western Water Company's initiative in gaining approval by the State Water Resources Control Board and other state and federal agencies for this transfer of conserved water," said Luther Hintz, general manager of Reclamation District 108.

"Through this innovative sale, the Mutual Water Company has finally gotten credit for its water conservation efforts, benefiting its farmers," stated Max Sakato, general manager of Sutter Mutual.

Western Water Company is engaged in the identification, development, transportation, sale and lease of water rights and water to municipalities and other end users in the western United States and owns water rights and real estate in California and Colorado.

Statements contained in this release which are not historical facts are forward looking statements that involve risks and uncertainties that could cause actual results or future events to differ from those contained herein. Factors that could cause actual results or events to differ include the company's ability to purchase and sell water rights and obtain financing and other factors and considerations detailed in the company's Securities and Exchange Commission filings.