About Sky RanchSky Ranch is located in Arapahoe County, Colorado directly adjacent to I-70, approximately 16 miles east of Downtown Denver, 4 miles north of the Lowry Range, and 4 miles south of Denver International Airport. Sky Ranch has been zoned for residential, commercial and retail uses and may include up to 4,850 single family equivalent units. Current development plans anticipate entry level housing (houses costing less than $300,000). The water and wastewater utilities at Sky Ranch are anticipated to generate approximately $132.8 million in tap fee revenue and approximately $6 million annually in service fee revenue upon completion of development (based on current tap fees and usage charges). We do not anticipate developing the property ourselves. Rather we plan to partner with national home builders/developers to provide them with competitively priced lots that are ready for development together with affordable, sustainable, environmentally sound water and wastewater services. With a land acquisition price of approximately $1,400 per entitled lot, we believe this property is well positioned to offer affordable land and utilities to home builders and developers looking to construct entry level houses. Although we do not know exactly when this property will develop, land development experts believe the entry level housing market will be the first product to rebound in the Denver metropolitan area. We will host a conference call to discuss this acquisition on August 5, 2010 at 10:00 AM Mountain (12:00 PM Eastern). The call in number is (877) 377-7104, which will be webcast on our website, and we will have a slide presentation available at www.purecyclewater.com . Company Information Pure Cycle owns water assets in multiple river basins in the State of Colorado as well as in certain aquifers in the Denver metropolitan area. Pure Cycle provides water and wastewater services to customers located in the Denver metropolitan area including the design, construction, operation and maintenance of water and wastewater systems.