Pure Cycle Corporation Announces Change in Independent Registered Public Accounting Firms

Business Wire, Dec 17, 2004

THORNTON, Colo. -- Pure Cycle Corporation (NASDAQ Smcap:PCYO) today announced it has retained Anton Collins Mitchell LLP (ACM) as its independent registered public accounting firm, effective for the fiscal year ending August 31, 2005. ACM replaces KPMG LLP.

The decision to change independent registered public accounting firms was made by our Audit Committee of the Board of Directors following the solicitation of proposals from and discussions with qualified public accounting firms to perform the Company's fiscal year 2005 audit. We have had a positive working relationship with KPMG and we would like to thank them for all their years of service.

The reports of KPMG on our financial statements for the past two fiscal years did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles.

During the most recent two fiscal years ending August 31, 2004, and 2003, respectively, there were no disagreements with KPMG on any matter of accounting principles or practices, financial statements disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of KPMG, would have caused KPMG to make reference to the subject matter of the disagreements in connection with its report.

Company Information

Pure Cycle Corporation owns water assets located in the Denver, Colorado, metropolitan area and on the western slope of Colorado. Pure Cycle is providing water and wastewater services to customers located in the Denver metropolitan area and provides services such as the design, construction, operation and maintenance of water and wastewater systems. We also own patented water recycling technologies which are capable of processing wastewater into potable drinking water.

Our common stock is traded on the NASDAQ SmallCap market under the symbol "PCYO." Additional information including our recent press releases and our fiscal year ended August 31, 2004, Annual Report are available at www.purecyclewater.com, or you may contact our President, Mark W. Harding, at 303-292-3456.