Pure Cycle Corporation Announces Q1 Fiscal 2008 Financial

THORNTON, CO--(Marketwire - January 9, 2008) - Pure Cycle Corporation (NASDAQ: PCYO) announced financial results today for the first quarter of fiscal 2008. For the three months ended November 30, 2007, we posted a net loss of approximately $1.9 million ($.09 per share) on revenues of approximately $69,700. This compares to a net loss of approximately $1.6 million ($.09 per share) on revenues of approximately $63,700 for the three months ended November 30, 2006. The main components of our net losses for both periods noted above, as well as reasons for the increase are as follows (certain terms used below, as well as further details of our financial results, are described in our November 30, 2007 Form 10-Q):

--  Approximately $1.1 million of imputed interest expense, which is the
    same for both periods, related to the Tap Participation Fee payable to HP
    A&M;
    
--  Approximately $273,700 of loss related to the acquisition of certain
    CAA interests, which did not occur in the first quarter of fiscal 2007;
    
--  Approximately $112,900 of consulting fees have been expensed during
    the first quarter of fiscal 2008. These relate to the ongoing discussions
    with the Land Board and Lend Lease over the water and wastewater service
    agreement for the proposed development at the Lowry Range;
    
--  Approximately $95,600 and $90,500 of depreciation and depletion
    charges have been incurred for the first fiscal quarter of 2008 and 2007,
    respectively. These charges relate mainly to the Arkansas River Valley
    assets and the assets constructed to provide water to the Arapahoe County
    Fairgrounds;
    
--  Approximately $81,300 and $78,200 of stock-based compensation expenses
    related to stock options recorded pursuant to SFAS 123(R) were recorded
    during first fiscal quarter of 2008 and 2007, respectively;
    
--  Approximately $89,300 and $75,000 of Fort Lyon Canal water assessment
    fees were expensed during the first fiscal quarter of 2008 and 2007,
    respectively.

We will host a conference call to discuss the results at our Annual Stockholders' Meeting on Tuesday, January 15, 2008 at 2 pm Mountain. The call will be hosted by our President, Mark W. Harding. Call details are presented below.

Additional information regarding the Annual Stockholders' Meeting is included in our Proxy Statement filed with the Securities and Exchange Commission on December 14, 2007.

                        FINANCIAL HIGHLIGHTS
                   Unaudited Results of Operations

                                                    Three months ended
                                                       November 30,
                                                    2007          2006
                                                ------------  ------------
Total revenues                                  $     69,700  $     63,700
Total cost of revenues                               (41,400)      (41,400)
                                                ------------  ------------
Gross margin                                          28,300        22,300
Total operating expenses                            (725,100)     (512,100)
Other (expense) income
  Including imputed interest of $1.1 million
   for both periods                               (1,198,200)   (1,095,400)
                                                ------------  ------------
Net loss                                        $ (1,895,000) $ (1,585,200)
                                                ============  ============
Weighted average shares outstanding (basic and
 diluted)                                         20,136,157    18,353,443
                                                ============  ============
Loss per share                                  $      (0.09) $      (0.09)
                                                ============  ============





                        Financial Position Data

                                                November 30,   August 31,
                                                    2007          2007
                                                ------------- -------------

Current assets                                  $   6,903,500 $   7,288,400
                                                ------------- -------------
Total assets                                    $ 111,421,000 $ 111,891,900
                                                ------------- -------------

Current liabilities                             $     215,500 $     183,300
                                                ------------- -------------
Total liabilities                               $  53,484,400 $  54,047,100
                                                ------------- -------------

Total stockholders' equity                      $  57,936,600 $  57,844,800
                                                ------------- -------------


CALL INFORMATION
What:            First quarter fiscal 2008 Financial Release and
                 2008 Annual Stockholders' meeting Call
When:            January 15, 2008 at 2:00 pm Mountain
To listen:       Click on the link posted on the Company's website:
                 www.purecyclewater.com
                 Log-on 5 minutes early in case downloads are required.
Call in Number:  Toll free: (866) 362-4831
Passcode:        90079735


REPLAY INFORMATION
The call will be available for replay until 9:59 pm on January 22, 2008:
Toll free:       (888) 286-8010
Passcode:        56280144
A replay will be available on the Company's Website through April 10, 2008.

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

Pure Cycle Corporation Announces Q1 Fiscal 2008 Financial Results

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