Layne Christensen Reports Second Quarter Fiscal 2011 Earnings

• Revenues for the quarter increased $36.1 million, or 16.6%, to $253.3 million from $217.2 million last year.
• Net income for the quarter was $6.5 million, or $0.33 per share, compared to a loss of $8.6 million, or $0.45 per share last year which included an after-tax non-cash impairment charge of $13.0 million, or $0.68 per share.

Financial Data	Three Months		%	Six Months		%
(in 000's, except per share data)	7/31/10	7/31/09	Change	7/31/10	7/31/09	Change
Revenues
--Water infrastructure	$193,990	$174,141	11.4	$366,895	$342,228	7.2
--Mineral exploration	50,785	30,257	67.8	96,663	55,051	75.6
--Energy	5,843	11,988	(51.3)	15,392	22,309	(31.0)
--Other	2,682	841	218.9	5,065	1,831	176.6
Total revenues	253,300	217,227	16.6	484,015	421,419	14.9
Net income (loss)	6,450	(8,640)	*	13,021	(7,644)	*
Diluted EPS	0.33	(0.45)	*	0.67	(0.40)	*
Net income excluding energy impairment charge	6,450	4,399	46.6	13,021	5,395	141.4
Diluted EPS excluding energy impairment charge	0.33	0.23	43.5	0.67	0.28	139.3
* Not meaningful

"The strength of our mineral exploration business, projects in specialty drilling and improvements in Layne's legacy water well drilling business carried earnings in the second quarter. Earnings in the more infrastructure intensive part of the water business were flat in the quarter and Layne Energy's quarterly results reflected the weak pricing in the natural gas market. Going forward, the second half of the year looks a little more challenging than the first. We will have tougher year-over-year comparables with the absence of last year's Katrina related work in New Orleans, lower natural gas prices and water infrastructure margins that are weaker. Mineral exploration and Layne's legacy water business should improve over the second half of last year so that should provide some positive offsets."  --- Andrew B. Schmitt, President and Chief Executive Officer

MISSION WOODS, Kan., Sept. 2, 2010 (GLOBE NEWSWIRE) -- Layne Christensen Company (Nasdaq:LAYN) today announced net income for the second quarter ended July 31, 2010, of $6,450,000, or $0.33 per diluted share for the three months and $13,021,000, or $0.67 per diluted share for the six months, compared to a net loss of $8,640,000, or $0.45 per diluted share, for the three months and a net loss of $7,644,000, or $0.40 per diluted share, for the six months ended July 31, 2009.  Earnings in the prior periods were impacted by non-cash impairment charges in the energy division. Excluding the non-cash charges, net income for the three months ended July 31, 2009, was $4,399,000, or $0.23 per diluted share, and for the six months ended July 31, 2009, was $5,395,000, or $0.28 per diluted share.

Revenues increased $36,073,000, or 16.6% to $253,300,000, for the three months ended July 31, 2010, and $62,596,000, or 14.9%, to $484,015,000 for the six months ended July 31, 2010, as compared to the same periods last year. A further discussion of results of operations by division is presented below.