Layne Christensen

Layne Christensen Company provides services and related products in four principal markets: water resources, mineral exploration, geoconstruction services and energy services and production. However, with the recent acquisition of Reynolds,ACS and CWI, management has transformed Layne Christensen into a complete water solution company that offers products and services through the water lifecycle. Revenue from water resources accounts for 80% of total revenues.

Competition included ITT and GE.

Revenues and Earnings

Recent News

August 30, 2006 -- Revenues and net earnings set quarterly records, with revenues up 76.4% to $187.1 million and earnings per share up 34.3% to $0.47 per share, compared to prior year.

Revenues and operating earnings from the water and wastewater infrastructure division increased 94.0% and 31.6%, respectively, from the prior year, driven mainly by the Reynolds acquisition and continued expansion into water treatment markets.

All of our business units contributed to what was an outstanding quarter for the Company. The water, minerals and energy sectors where we work continue to be great places in today's economy. The second quarter will likely be our peak this year as it was last year, but all our business units continue to be extremely busy. The housing market, rising interest rates and the leveling off of precious and base metal pricing will eventually have some impact on activity, but at this stage the effect is not discernable. The Reynolds acquisition and our continued success in the water treatment markets are beginning to provide momentum as we move into the second half. Fiscal 2007 is looking like it will be a really good year." -- Andrew B. Schmitt, President and Chief Executive Officer

July 13, 2006--Layne Christensen Company (NASDAQ:LAYN - News) announced today it has acquired Collector Wells International, Inc. ("CWI"), a specialty water services firm that designs and constructs water supply systems with yields ranging from less than 1 million gallons per day to over 100 million gallons per day. The management team of CWI has been together for over 25 years. CWI will be combined with a similar business acquired in the Reynolds, Inc. ("Reynolds") acquisition completed in September 2005. CWI had combined revenues of approximately $6.5 million in the previous 12 months and brings in approximately $9.6 million in current contracts. The acquisition was financed through normal revolving bank credit lines.

Key among the water supply systems provided by CWI and Reynolds in this product offering are radial collector wells, seawater collector wells, fixed-screen surface water intakes, infiltration galleries/riverbank infiltration, hydrogeological investigations, including riverbank filtration studies and water supply development feasibility studies. Radial collector wells (often referred to as Ranney wells) offer many unique solutions to a variety of water supply needs. When properly sited and constructed in alluvial aquifers near streams, rivers, and lakes, these units can yield up to 50 million gallons per day from a single well. Given the high capacity and unique design, they offer many advantages over traditional approaches and are well suited to the growing international desalination marketplace.

Jeff Reynolds, Executive Vice President of Layne and head of the Company's Water and Wastewater Infrastructure division, stated, "We are very excited and proud to have CWI as part of the Layne family of companies. Our combined experience, resources and technologies should afford our customers an unprecedented level of service and capabilities."