Arkansas River Acquisition

In August 2006 we completed the acquisition of approximately 60,000 acre-feet (approximately 40,000 acre-feet of “Consumptive Use”) of Arkansas River water. This water is currently being used by the 80 farms (or approximately 17,500 acres) that we purchased in conjunction with the water. The Arkansas River water we acquired is represented by approximately 21,000 shares (over 22%) of the Fort Lyon Canal Company (www.flcc.net) which has water rights that date back to the early 1880’s and has over 100,000 acre-feet of storage in two principal reservoirs, Horse Creek and Adobe Creek. We plan to utilize this water in conjunction with our Denver based water assets in order to provide a regional and sustainable water supply to the Denver and Colorado Front Range markets. Additional information regarding our Arkansas River Water Assets can be found in our latest SEC filings located on our Investor Relations section.