Pure Cycle is reporting net losses of approximately $5.3 million ($.26 pershare) and $5.2 million ($.28 per share), for the nine months ended May 31,2008 and 2007, respectively. The main components of our losses are itemsthat do not currently require the use of cash, and are comprised of thefollowing:

                                                     Nine Months Ended:                                                  May 31, 2008 May 31, 2007                                                  ------------ ------------Imputed expenses or non-cash expenses:  Imputed Interest on the Tap Participation Fee   $  3,255,000 $  3,463,500  Loss on extinguishment of contingent   obligations                                         273,700            -  Depreciation and depletion                           286,200      274,000  Stock based compensation expense                     263,800      223,900                                                  ------------ ------------Total imputed and non-cash expenses               $  4,078,700 $  3,961,400                                                  ============ ============

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 ninemonths ended May 31, 2008, to be filed with the SEC on July 10, 2008. Inaddition to the above items, for the nine months ended May 31, 2008 and2007, respectively, we also incurred approximately $190,200 and $24,200 ofconsulting fees related to the ongoing discussions with the Land Board andLend Lease over water and wastewater service agreements for the proposeddevelopment at the Lowry Range. Excluding the cash paid for consulting andthe expenses described above, our net losses for the nine months ended May31, 2008 and 2007 would have been:

                              Nine Months Ended:                          May 31, 2008  May 31, 2007   $ Change   % Change                          ------------  ------------  ----------  --------Net losses as reported    $ (5,273,000) $ (5,157,400) $  115,600         2%  Imputed and non-cash   expenses described   above                     4,078,700     3,961,400  Consulting fees              190,200        24,200                          ------------  ------------  ----------  --------As adjusted net losses    $ (1,004,100) $ (1,171,800) $ (167,700)      -14%                          ============  ============  ==========  ========

The as adjusted net losses for the current year decreased because (i) wedid not incur in the current year the professional fees we incurred lastyear arising out of SEC consultations and (ii) we have eliminated franchisefees paid to the State of Delaware as a result of our reincorporation inColorado.

We will host a conference call to discuss the results on Friday, July 11,2008 at 2 pm Mountain. The call will be hosted by our President, Mark W.Harding. Call details are presented below.

                             FINANCIAL HIGHLIGHTS                        Unaudited Results of Operations                                                    Nine Months Ended:                                                May 31, 2008  May 31, 2007                                                ------------  ------------Total revenues                                  $    194,100  $    178,100Total cost of revenues                              (118,500)     (121,100)                                                ------------  ------------Gross margin                                          75,600        57,000Total operating expenses                          (2,030,400)   (1,858,800)Other (expense) income  Including imputed interest of $3.3 million   and $3.5 million                               (3,318,200)   (3,355,600)                                                ------------  ------------Net loss                                        $ (5,273,000) $ (5,157,400)                                                ============  ============Weighted average shares outstanding (basic and diluted)                                         20,182,668    18,399,887                                                ============  ============Loss per share                                  $      (0.26) $      (0.28)                                                ============  ============                            Financial Position Data                                        May 31, 2008   August 31, 2007                                      ================ ================Current assets                        $      5,881,800 $      7,288,400                                      ---------------- ----------------Total assets                          $    110,392,600 $    111,891,900                                      ---------------- ----------------Current liabilities                   $        214,700 $        183,300                                      ---------------- ----------------Total liabilities                     $     55,659,000 $     54,047,100                                      ---------------- ----------------Total stockholders' equity            $     54,733,700 $     57,844,800                                      ---------------- ----------------CALL INFORMATION------------------------------------------------------------------------What:             Third quarter fiscal 2008 Financial ReleaseWhen:             July 11, 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: 888-396-2386Passcode:         11707635REPLAY INFORMATION------------------------------------------------------------------------The call will be available for replay until 9:59 p.m. on July 18, 2008:Toll free:        888-286-8010Passcode:         94544977A replay will be available on the Company's Website through August 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.