FOR IMMEDIATE RELEASE                  CONTACT: Scott Maloni
May -- 2006                                   619-231-0996 ext. 323; 858-663-8838 (cell)

Poseidon Resources Wins Excellence in Environmental Engineering Award from American Academy of Environmental Engineers

Carlsbad, CA – Poseidon Resources, Inc. announced today that their Carlsbad pilot plant has been awarded the 2006 Grand Prize for Excellence in Environmental Engineering in the Research Category from the American Academy of Environmental Engineers. 

The Excellence in Environmental Engineering competition recognizes projects or programs demonstrating excellence in environmental engineering for the categories of Research, University Research, Planning, Design, Operations/Management, and Small Projects.  The competition is judged by an independent panel of nationally-recognized experts that ranks entrees based on a holistic environmental perspective; innovation; performance and client satisfaction; and contribution to an improved quality of life and economic efficiency. 

“It is truly an honor to receive this award from the distinguished American Academy of Environmental Engineers recognizing our cutting-edge research and technology, strong respect for the environment, and the hard work of our team,” said Peter MacLaggan, Senior Vice President for Poseidon Resources. “For the past few years, Poseidon Resources has carried out comprehensive studies at our pilot plant which demonstrate this project is a safe and environmentally responsible solution to the region’s water needs.”

Since 1998, Poseidon Resources has been working in a public-private partnership with the City of Carlsbad to construct a 50-Million-Gallon-Per-Day (MGD) saltwater desalination plant at the site of the Encina Power Station to provide a cost-certain, locally-controlled, drought-proof supply of water. 

In January 2003, a pilot desalination facility began operating on site, providing a unique opportunity to demonstrate the desalination process and showcase the important balance of environmental protections inherent in the larger project, including protection of the Agua Hedionda Lagoon and offshore marine environment. The successful demonstration plant currently produces high-quality potable water that exceeds the most stringent environmental and regulatory standards.

Once operational, the Carlsbad desalination plant will provide enough drinking water to serve 300,000 residents annually at a guaranteed price, at no risk to taxpayers.  The plant is scheduled to be completed and producing potable water by 2009.

The award will be accepted by Nikolay Voutchkov, Poseidon’s Corporate Director of Technical Services, on May 3, 2006 at the Academy’s award ceremony to be held at the National Press Club in Washington, D.C.

Poseidon Resources specializes in developing and financing water infrastructure projects, primarily seawater desalination and water treatment plants.  These projects are implemented through innovative public-private partnerships in which private enterprise assumes the developmental and financial risks.  For more information on Poseidon Resources and the Carlsbad desalination plant visit our website at www.carlsbad-desal.com.

-END-