Pure Cycle is reporting net losses of approximately $3.5 million ($.18 pershare) and $3.4 million ($.19 per share), for the six months ended February29, 2008 and February 28, 2007, respectively. However, approximately $2.8million and $2.6 million of the reported losses relate to expense itemswhich do not currently require the use of cash or other current assetswhich results in cash expenses totaling approximately $.8 million for eachperiod. Although they are components of our net losses, management does notinclude these items when reviewing the performance of the company;therefore, management believes it is necessary to highlight these items forinvestors. The items are comprised of the following:

                                                    Six Months Ended:                                                February 29,  February 28,                                                    2008          2007                                                ------------- -------------Imputed expenses or non-cash expenses:  Imputed Interest on the Tap Participation Fee $   2,141,000 $   2,286,700  Loss on extinguishment of contingent   obligations                                        273,700             -  Depreciation and depletion                          190,800       182,200  Stock based compensation expense                    170,400       156,500                                                ------------- -------------Total imputed and non-cash expenses             $   2,775,900 $   2,625,400                                                ============= =============

These items are explained in greater detail in our Form 10-K for the yearended August 31, 2007 and further in our Form 10-Q for the three and sixmonths ended February 29, 2008, to be filed with the SEC on April 9, 2008.In addition to the above items, for the six months ended February 29, 2008and February 28, 2007, respectively, we also incurred approximately$152,700 and $5,000 of consulting fees related to the ongoing discussionswith the Land Board and Lend Lease over the water and wastewater serviceagreements for the proposed development at the Lowry Range. Excluding thecash paid for consulting and the expenses described above our net lossesfor the six months ended February 29, 2008 and February 28, 2007 would havebeen:

                            Six Months Ended:                        February 29, February 28,                           2008         2007        $ Change     % Change                        -----------  -----------  -----------  -----------Net losses as reported  $(3,544,700) $(3,414,500) $   130,200            4%  Imputed and non-cash   expenses described   above                  2,775,900    2,625,400  Consulting fees           152,700        5,000                        -----------  -----------  -----------  -----------As adjusted net losses  $  (616,100) $  (784,100) $  (167,800)         -21%                        ===========  ===========  ===========  ===========

The as adjusted net losses for the current year decreased as a result oflower professional fees due to the consultation with the SEC we had in theprior fiscal year and the reduction of state franchise fees paid to theState of Delaware as a result of our reincorporation into Colorado.

We will host a conference call to discuss the results on Thursday, April10, 2008 at 2 pm Mountain. The call will be hosted by our President, MarkW. Harding. Call details are presented below.

                             FINANCIAL HIGHLIGHTS                       Unaudited Results of Operations                                                    Six Months Ended:                                                February 29,  February 28,                                                    2008          2007                                                ------------  ------------Total revenues                                  $    126,500  $    115,700Total cost of revenues                               (82,200)      (80,600)                                                ------------  ------------Gross margin                                          44,300        35,100Total operating expenses                          (1,369,100)   (1,267,200)Other (expense) income  Including imputed interest of $2.1 million   and $2.3 million                               (2,219,900)   (2,182,400)                                                ------------  ------------Net loss                                        $ (3,544,700) $ (3,414,500)                                                ============  ============Weighted average shares outstanding (basic and diluted)                              20,170,588    18,361,083                                                ============  ============Loss per share                                  $      (0.18) $      (0.19)                                                ============  ============                          Financial Position Data                                        February 29, 2008  August 31, 2007                                        ----------------- -----------------Current assets                          $       6,303,700 $       7,288,400                                        ----------------- -----------------Total assets                            $     110,858,200 $     111,891,900                                        ----------------- -----------------Current liabilities                     $         145,000 $         183,300                                        ----------------- -----------------Total liabilities                       $      54,489,600 $      54,047,100                                        ----------------- -----------------Total stockholders' equity              $      56,368,600 $      57,844,800                                        ----------------- -----------------CALL INFORMATION------------------------------------------------------------------------What:            Second quarter fiscal 2008 Financial ReleaseWhen:            April 10, 2008 at 2:00 pm MountainTo 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: (888) 679-8038Passcode:        95637026REPLAY INFORMATION------------------------------------------------------------------------The call will be available for replay until 9:59 p.m. on April 17, 2008:Toll free:       (888) 286-8010Passcode:        24325281A replay will be available on the Company's Website through May 31, 2008.

For questions, please contact Investor Relations atinfo@purecyclewater.com.

Company Information

Pure Cycle owns water assets in several river basins in the State ofColorado as well as certain aquifers in the Denver, Colorado metropolitanarea. Pure Cycle provides water and wastewater services to customerslocated 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 AnnualReports are available at www.purecyclewater.com, or you may contact ourPresident, Mark W. Harding, at 303-292-3456.