PCYO Pure Cycle Corp

Pure Cycle Corporation (the �Company�) (NASDAQ Capital Market: PCYO) today announced it has filed for an extension for reporting of results for the three fiscal years ended August 31, 2006. Pure Cycle Corporation entered into an Asset Purchase Agreement with High Plains A&M on the last day of its fiscal year, August�31, 2006, whereby we acquired (i)�approximately 60,000 acre-feet of water rights in the Arkansas River and its tributaries, (ii)�approximately 17,500 acres of real property, and (iii)�certain contract rights, tangible personal property, mineral rights, and other water interests associated with the real property. The transaction substantially increased the assets and service capacities of the Company and included a number of complex features which significantly increased the amount of time necessary to complete our financial statements. Most notably, certain of the properties acquired are subject to outstanding promissory notes which are secured by deeds of trust on the properties. Pure Cycle did not assume these promissory notes, and it is not responsible for making the required payments. High Plains remains responsible for these notes. However, Pure Cycle is reporting information about the debt represented by these notes because it may elect to cure the notes in the event of a default by High Plains. Because this debt is the obligation of a third party, and not Pure Cycle, Pure Cycle is unable to obtain the necessary information to confirm the debt in time to complete the financial reporting for the transaction without unreasonable effort and expense. �The Arkansas acquisition is a very exciting and important acquisition for the Company and our shareholders,� commented Mr. Mark Harding, President of Pure Cycle. �Our staff and our independent auditors have been working diligently to complete this audit and have encountered unanticipated difficulties in confirming certain of the mortgages retained by High Plains under our agreements,� continued Mr. Harding. The Company will file its Fiscal 2006 Financial Results prior to the expiration of the extension deadline of November 29, 2006. Company Information Pure Cycle provides water and wastewater services to customers located in the Denver metropolitan area. These services include the design, construction, operation and maintenance of water and wastewater systems utilizing the valuable water supplies that we own. 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. Pure Cycle Corporation (the "Company") (NASDAQ Capital Market: PCYO) today announced it has filed for an extension for reporting of results for the three fiscal years ended August 31, 2006. Pure Cycle Corporation entered into an Asset Purchase Agreement with High Plains A&M on the last day of its fiscal year, August 31, 2006, whereby we acquired (i) approximately 60,000 acre-feet of water rights in the Arkansas River and its tributaries, (ii) approximately 17,500 acres of real property, and (iii) certain contract rights, tangible personal property, mineral rights, and other water interests associated with the real property. The transaction substantially increased the assets and service capacities of the Company and included a number of complex features which significantly increased the amount of time necessary to complete our financial statements. Most notably, certain of the properties acquired are subject to outstanding promissory notes which are secured by deeds of trust on the properties. Pure Cycle did not assume these promissory notes, and it is not responsible for making the required payments. High Plains remains responsible for these notes. However, Pure Cycle is reporting information about the debt represented by these notes because it may elect to cure the notes in the event of a default by High Plains. Because this debt is the obligation of a third party, and not Pure Cycle, Pure Cycle is unable to obtain the necessary information to confirm the debt in time to complete the financial reporting for the transaction without unreasonable effort and expense. "The Arkansas acquisition is a very exciting and important acquisition for the Company and our shareholders," commented Mr. Mark Harding, President of Pure Cycle. "Our staff and our independent auditors have been working diligently to complete this audit and have encountered unanticipated difficulties in confirming certain of the mortgages retained by High Plains under our agreements," continued Mr. Harding. The Company will file its Fiscal 2006 Financial Results prior to the expiration of the extension deadline of November 29, 2006. Company Information Pure Cycle provides water and wastewater services to customers located in the Denver metropolitan area. These services include the design, construction, operation and maintenance of water and wastewater systems utilizing the valuable water supplies that we own. 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.