July 8, 2008

Basin to Install Three Small-Scale Uranium Removal Systems in New Hampshire Condominium Developments

Basin Water, Inc. (NASDAQ:BWTR) announced today that it will install small-scale uranium removal systems treating groundwater wells for three private condominium developments in New Hampshire. The first installation, for the Saco Woods Condominium Association in North Conway, NH, has just come on-line and is operating successfully. The second, for Davis Hill Condominiums in Center, NH, is planned for start-up in mid-July. The third project, for the Saco Forest Condominiums, has had a successful validation study, and a treatment system is currently being constructed for a planned start-up date in August. These projects represent the first activity for Basin Water in its new Northeast region. They are also the first installations that feature Basin Water's newly acquired technology for smaller flow applications. These small-scale systems, which are designed and built at the Company's facilities in Memphis, TN, represent a new answer for real estate developers, institutions, commercial entities and private water utilities struggling to achieve compliance with increasingly stringent regulations.

According to Michael Stark, President and Chief Executive Officer of Basin Water, these contracts are a sign of progress in the Company's planned geographical expansion that was put into motion in mid-2007. "In a relatively short time, Basin Water is beginning to see success in gaining footholds in the new geographical regions we have entered," Stark said. "In the process, we've not only had sales successes but technological successes as well. These small-scale systems provide an efficient solution for small drinking water utilities, a market segment that we feel is not well-served currently and which is quite large. As with all Basin Water installations, these systems combine design and operational efficiencies to produce low lifecycle cost, along with a water services agreement that assures long-term, trouble-free operation. We can now deliver Basin Water's guaranteed performance on a much smaller scale to communities that need this help," he added.

The Saco Woods Condominiums' treatment system features vessels containing uranium-selective ion exchange resin. It currently serves 240 connections and has been designed for flow rates of 43 thousand gallons per day (30 gallons per minute). The Basin Water system is treating groundwater with uranium levels of around 60 micrograms per liter (ug/L) down to non-detectable levels. The U.S. EPA has set the maximum contaminant level (MCL) for uranium in drinking water at 30 ug/L. The compact Basin Water treatment system at this site is housed in the utility's existing well house. The agreement between Basin Water and Saco Woods covers the sale of the equipment as well as assistance with the disposal of depleted media as necessary. Assistance with system design, installation and testing was performed on Saco Woods' behalf by Northeast Engineering of Weare, NH.

Uranium is a naturally occurring radioactive element found in rocks, soil and groundwater that breaks down (decays) very slowly into other elements such as radium and radon gas. It is present in many areas throughout the USA and Canada, as well as other parts of the world. The presence of radionuclides - which include uranium, radium-226 and radium-228 - in drinking water has been linked to a number of deleterious effects on human health. Basin Water has uranium treatment systems installed for well flows ranging from 30 gpm to 1,000 gpm.

According to David Caton, Director of Business Development, Northeast and Southeast Regions, Basin Water's technology and business model represent a straightforward solution for real estate developers and small utilities that are finding it difficult to deal with increasingly stringent water quality regulations. "Since radionuclide MCLs were adopted by the EPA in 2000, it has become a national problem for smaller systems to comply with the new regulations. Meeting these regulations cost effectively requires a range of different types of expertise that are not available to a small water system," he said. "Basin Water brings treatment technology, engineering and waste disposal expertise together in a cost-effective package that guarantees performance and costs. When you factor in the speed with which we can implement a treatment system like this - sometimes as fast as 90 days - we feel like we have the best solution for delivering 'worry-free water' to small water providers on the market today," he added.

About Basin Water

Basin Water, Inc. is a provider of reliable, long-term process solutions for a range of clients, which includes designing, building and implementing systems for the treatment of contaminated groundwater, the treatment of wastewater, waste reduction and resource recovery. Basin Water employs treatment technologies including its own proprietary, scalable ion-exchange wellhead treatment system, along with a host of other treatment technologies designed to meet customer needs in an efficient, flexible and cost-effective manner. Additional information may be found on the Company's web site: www.basinwater.com.

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including expectations relating to future revenues and income, the Company's ability to gain new business and control costs, involve risks and uncertainties, as well as assumptions that, if they prove incorrect or never materialize, could cause the results of the Company to differ materially from those expressed or implied by such forward-looking statements. Actual results may differ materially from these expectations due to various risks and uncertainties, including: the Company's limited operating history, significant operating losses associated with certain of the Company's contracts, the Company's ability to identify and consummate other acquisition opportunities that improve the Company's revenues and profitability, significant fluctuations in its revenues from period to period, its ability to effectively manage its growth, the success of the Company's strategic partners, its long sales cycles, market acceptance of its technology, the geographic concentration of its operations and customers, its ability to meet customer demands and compete technologically, the Company's ability to protect its intellectual property, regulatory approvals of the Company's systems, changes in governmental regulation that may affect the water industry, particularly with respect to environmental laws, the Company's ability to attract and retain qualified personnel and management members, the Company's ability to manage its capital to meet future liquidity needs, changes in the Company's management and board of directors and the timing of the Company's stock repurchases, if any. More detailed information about these risks and uncertainties are contained in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2007 and subsequent Quarterly Reports on Form 10-Q. The Company assumes no obligation to update these forward-looking statements to reflect any change in future events.