Pure Cycle Corporation Announces Fiscal 2007 Financial Results

THORNTON, CO -- (MARKET WIRE) -- 11/14/07 -- Pure Cycle Corporation (the "Company") (NASDAQ: PCYO) announced today it posted a net loss of approximately $6.9 million ($.37 per share) on revenues of approximately $265,700 for the year ended August 31, 2007. This compares to a net loss of approximately $792,900 ($.05 per share) on revenues of approximately $271,700 for the year ended August 31, 2006, and a net loss of approximately $1.1 million ($.08 per share) on revenues of approximately $234,700 for the year ended August 31, 2005. The increased loss is mainly attributable to the following, which are described in greater detail in the Company's Form 10-K filed with the SEC today:

--  Approximately $4.7 million of imputed interest expense related to the
    "Tap Participation Fees payable to HP A&M," which the Company began
    expensing on September 1, 2006;

--  Approximately $366,100 of depreciation and depletion charges, which
    relate mainly to the Arkansas River Valley assets and the assets
    constructed to provide water to the Arapahoe County Fairgrounds, which were
    not depreciated in fiscal 2006 or 2005;

--  Approximately $287,300 of stock-based compensation expenses related to
    stock options recorded pursuant to SFAS 123(R), which is compared to
    $209,600 and $0 expensed in fiscal 2006 and 2005, respectively;

--  Approximately $256,000 of water assessment fees expensed, which is
    compared to $0 in both fiscal 2006 and 2005;

--  Approximately $190,000 of additional professional fees related to the
    High Plains asset acquisition and consultations with the SEC; and

--  Approximately $113,500 of additional State of Delaware franchise fees
    and NASDAQ fees, which are a result of the increased asset values and
    shares outstanding due to the High Plains asset acquisition on August 31,
    2006.

The Company will host a conference call to discuss these results on November 15, 2007. Details of the call and additional financial highlights are below.

                  FINANCIAL HIGHLIGHTS
           Unaudited Results of Operations

                                          Years Ended August 31,
                                      2007          2006          2005
                                  ------------  ------------  ------------
Total revenues                      $ 265,700     $ 271,700     $ 234,700
Total cost of revenues
  Increase due mainly to
   depletion of the Arapahoe
   County Fairgrounds water
   system                             (165,200)      (73,900)      (63,200)
                                  ------------  ------------  ------------
Gross margin                           100,500       197,800       171,500
Total operating expenses            (2,754,800)   (1,556,600)   (1,322,400)
Other (expense) income
  Including imputed interest of
   $4.7 million, $0 and $0          (4,260,400)      565,900       100,000
                                  ------------  ------------  ------------
Net loss                          $ (6,914,700) $   (792,900) $ (1,050,900)
                                  ============  ============  ============
Weighted average shares
 outstanding (basic and diluted)    18,589,737    14,693,585    13,674,156
                                  ============  ============  ============
Loss per share                    $      (0.37) $      (0.05) $      (0.08)
                                  ============  ============  ============



                           Financial Position Data

                                              August 31,       August 31,
                                                2007             2006
                                            ==============   ==============

Current assets                              $    7,288,400   $    3,121,400
                                            --------------   --------------
Total assets                                $  111,891,900   $  108,833,900
                                            --------------   --------------

Current liabilities                         $      183,300   $      380,000
                                            --------------   --------------
Total liabilities                           $   54,047,100   $   54,169,200
                                            --------------   --------------

Total stockholders' equity                  $   57,844,800   $   54,664,700
                                            --------------   --------------


CALL INFORMATION
What:           Fiscal 2007 Earnings Release Call
When:           November 15, 2007 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) 510-0676
Passcode:       16124045


REPLAY INFORMATION
The call will be available for replay until 9:59 p.m. on November 22, 2007:
Toll free:      (888) 286-8010
Passcode:       70477808
A replay will be available on the Company's Website through January 2,
2008.

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

Pure Cycle Corporation Announces Fiscal 2007 Financial Results

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