PCYO Pure Cycle Corp

Pure Cycle Corporation (NASDAQ: PCYO) announced today that effective July 1, 2006, it will raise water tap fees to $16,840 from $14,740, a 14% increase. In addition, Pure Cycle's monthly water usage rates will increase an average of 3%. Wastewater taps fees of $4,883 and monthly wastewater fees of $34.80 will remain unchanged. Tap fees, or system development charges, are fees charged to developers to gain access to the service providers water and wastewater systems. "Tap fee prices are the Denver area's benchmark to the increasing value of water in a water short region," stated Mark W. Harding, President of Pure Cycle. Mr. Harding continued by saying "These increases are primarily a result of rising prices being incurred by area water providers in order to acquire and develop additional water supplies to meet continued growth in the Denver metropolitan area. In recognition of the importance of this limited resource and exercising sound stewardship of Pure Cycle's water resources, Pure Cycle utilizes a dual pipe distribution system which allows us to continually reuse reclaimed water for outdoor irrigation purposes. Currently, Pure Cycle's valuable portfolio of water is capable of providing water service to 80,000 SFEs." Additional information about Pure Cycle, including recent press releases and our 2005 Annual Report, are available at www.purecyclewater.com, or you may contact Mark Harding at 303-292-3456.