Layne Christensen (LAYN) 8-K Layne Christensen Reports Third Quarter Fiscal 2008 Earnings

Exhibit 99

News Release

Contacts:	Layne Christensen Company
	Jerry W. Fanska
	Sr. Vice President Finance
	913-677-6858 www.laynechristensen.com

TUESDAY, DECEMBER 4, 2007

LAYNE CHRISTENSEN REPORTS THIRD QUARTER FISCAL 2008 EARNINGS

• Revenues set quarterly record up 21.2% to $225.2 million from $185.8 million in the prior year.

• Earnings per share increased $0.09 to $0.59 per share, up 18.0% from the prior year.

• Water and wastewater infrastructure division revenues and earnings up 18.8% and 6.3%, respectively, from the prior year.

• Mineral exploration division revenues and earnings up 19.2% and 16.0%, respectively, from the prior year.

• Energy division revenues and earnings up 47.5% and 38.1%, respectively, from the prior year.

• Other segment revenues double to $5.5 million, contributing $2.0 million in increased income before income taxes from the prior year.

Financial Data	Three Months				%			Nine Months				%
(in 000’s, except per share data)	10/31/07		10/31/06		Change			10/31/07		10/31/06		Change
Segment revenues
—Water & wastewater infrastructure	$	162,255	$	136,586		18.8	%	$	475,604	$	387,607		22.7	%
—Mineral exploration		47,380		39,749		19.2			130,885		111,615		17.3
—Energy		10,054		6,814		47.5			29,007		17,803		62.9
—Other		5,537		2,675		107.0			9,189		12,662		(27.4	)
Total revenues	$	225,226	$	185,824		21.2		$	644,685	$	529,687		21.7
Net income		9,929		7,762		27.9			27,650		19,596		41.1
Dilutive EPS	$	0.59	$	0.50		18.0		$	1.70	$	1.27		33.9
Weighted average dilutive shares outstanding		16,874		15,524		8.7			16,233		15,472		4.9

“The quarter overall came in fairly solid. The minerals and energy sides of our business are still experiencing double digit growth in both revenues and earnings. Water and wastewater infrastructure is still strong and benefited from acquisitions made in the Reynolds’ product lines. Special projects in Africa and Canada, classified in our other segment business, also contributed very positively to earnings. The fourth quarter will be the Company’s toughest year over year comparison. A lot will depend on the weather and the extent of the year end shut down in mining. We entered the quarter with a record backlog so our foundation looks pretty firm at this time.”—
Andrew B. Schmitt, President and Chief Executive Officer

-more-

MISSION WOODS, KANSAS, Tuesday, December 4, 2007 — Layne Christensen Company (Nasdaq: LAYN), today announced net income for the third quarter ended October 31, 2007 of $9,929,000, or $0.59 per diluted share, compared to net income of $7,762,000, or $0.50 per diluted share last year.

Revenues for the three months ended October 31, 2007 increased $39,402,000, or 21.2%, to $225,226,000 while revenues for the nine months ended October 31, 2007 increased $114,998,000, or 21.7%, to $644,685,000 from the same periods last year. Revenues were up across all divisions with the main increase in the water and wastewater infrastructure division, including the impact of the acquisitions of American Water Services Underground Infrastructure Inc. (“UIG”) in November 2006 and Collector Wells International Inc. (“CWI”) in June 2006. A further discussion of results of operations by division is presented below.

Selling, general and administrative expenses were $31,457,000 and $89,977,000 for the three and nine months ended October 31, 2007, compared to $26,724,000 and $75,324,000 for the same periods last year. The increases for the three and nine months ended October 31, 2007, respectively, were primarily the result of $1,457,000 and $4,807,000 in expenses added from the acquisitions of UIG and CWI, wage and benefit increases of $1,214,000 and $3,971,000 and share based compensation increases of $347,000 and $478,000. Although down slightly for the three months ended October 31, 2007 incentive compensation expense contributed $2,227,000 to the increase for the nine months ended.

Depreciation, depletion and amortization were $11,228,000 and $31,927,000 for the three and nine months ended October 31, 2007, compared to $8,673,000 and $23,139,000 for the same periods last year. The increases for the three and nine months ended October 31, 2007, respectively, were primarily the result of increased depletion expense of $881,000 and $3,360,000 resulting from the increase in production of unconventional gas from the Company’s energy operations and increased depreciation from property additions and acquisitions in the other divisions.

Equity in earnings of affiliates was $2,157,000 and $6,027,000 for the three and nine months ended October 31, 2007, compared to $1,388,000 to $2,892,000, for the same periods last year. The increases reflect continued strong performance in mineral exploration by affiliates in Latin America and, for the nine months, the absence of inclement weather which affected their results in the early months of the prior year.

Interest expense was $2,517,000 and $7,744,000 for the three and nine months ended October 31, 2007, compared to $2,551,000 and $7,180,000 for same periods last year. The increase for the nine months was primarily a result of increases in the Company’s average borrowings from the prior year in conjunction with the financing of the UIG and CWI acquisitions.

Income tax expense was recorded at an effective tax rate of 43.8% and 44.2% for the three and nine months ended October 31, 2007 compared to an effective rate of 45.4% and 46.5% for the same periods last year. The improvement in the effective rates was primarily attributable to an increase in pre-tax earnings, especially in international operations, and the resolution of certain tax contingencies. The effective rates in excess of the statutory federal rate for the periods were due primarily to the impact of nondeductible expenses and the tax treatment of certain foreign operations.

Water and Wastewater Infrastructure Division
(in thousands)

	Three months ended				Nine months ended
	October 31,				October 31,
	2007		2006		2007		2006
Revenues	$	162,255	$	136,586	$	475,604	$	387,607
Income before income taxes		10,647		10,015		34,422		27,423

Water and wastewater infrastructure revenues increased 18.8% to $162,255,000 and 22.7% to $475,604,000 for the three and nine months ended October 31, 2007, compared to $136,586,000 and $387,607,000 for the same periods last year. The increase in revenues for the three months ended was primarily due to the increases from the UIG acquisition of $11,721,000, year over year improvement in collector well revenues following the CWI acquisition of $4,825,000, and increases in revenues from wastewater infrastructure projects in the southeastern United States of $9,160,000. The increase in revenues for the nine months ended was primarily due to increases from the UIG and CWI acquisitions of $39,984,000, increases in collector well revenues of $4,825,000 following the acquisition and increases in revenues from certain wastewater infrastructure projects in the southeastern United States of $22,291,000.

Income before income taxes for the water and wastewater infrastructure division increased 6.3% to $10,647,000 and 25.5% to $34,422,000 for the three and nine months ended October 31, 2007, respectively, compared to $10,015,000 and $27,423,000 for the same periods last year. The increase in income before income taxes for the three months ended was primarily due to the increases from the UIG acquisition of $1,036,000 and improvement in collector well income following the CWI acquisition of

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approximately $1,400,000, offset by decreased earnings of $2,200,000 from certain large wastewater plant projects in the southeastern United States which are nearing completion. The increase in income before income taxes for the nine months ended was primarily due to increases from the UIG and CWI acquisitions of $2,166,000, increased earnings from certain of the wastewater projects in the southeastern United States of $2,948,000 and recovery of previously written off costs of $1,626,000 associated with a ground water transfer project in Texas.

The backlog in the water and wastewater infrastructure division was $376,506,000 as of October 31, 2007, compared to $306,939,000 as of October 31, 2006.

Mineral Exploration Division
(in thousands)

	Three months ended				Nine months ended
	October 31,				October 31,
	2007		2006		2007		2006
Revenues	$	47,380	$	39,749	$	130,885	$	111,615
Income before income taxes		9,033		7,789		26,075		19,963

Mineral exploration revenues increased 19.2% to $47,380,000 and 17.3% to $130,885,000 for the three and nine months ended October 31, 2007, respectively, compared to $39,749,000 and $111,615,000 for the same periods last year. The increases were primarily attributable to continued strength in the Company’s markets due to relatively high gold and base metal prices.

Income before income taxes for the mineral exploration division increased 16.0% to $9,033,000 and 30.6% to $26,075,000 for the three and nine months ended October 31, 2007, respectively, compared to $7,789,000 and $19,963,000 for the same periods last year. The improved earnings in the division were primarily attributable to continued strength in the Company’s markets, especially in North America, and an increase of $769,000 and $3,135,000 in equity earnings of affiliates in Latin America for the three and nine month periods, respectively.

Energy Division
(in thousands)

	Three months ended				Nine months ended
	October 31,				October 31,
	2007		2006		2007		2006
Revenues	$	10,054	$	6,814	$	29,007	$	17,803
Income before income taxes		3,263		2,362		9,834		6,340

Energy revenues increased 47.5% to $10,054,000 and 62.9% to $29,007,000 for the three and nine months ended October 31, 2007, respectively, compared to $6,814,000 and $17,803,000 for the same periods last year. The increases in revenues were primarily attributable to increased production from the Company’s unconventional gas properties.

Income before income taxes for the energy division increased 38.1% to $3,263,000 and 55.1% to $9,834,000 for the three and nine months ended October 31, 2007, respectively, compared to $2,362,000 and $6,340,000 for the same periods last year. The increases in income before income taxes were primarily due to the increase in production noted above.

Other
(in thousands)

	Three months ended				Nine months ended
	October 31,				October 31,
	2007		2006		2007		2006
Revenues	$	5,537	$	2,675	$	9,189	$	12,662
Income before income taxes		2,872		829		3,477		3,550

Included in Other for the three and nine months ended October 31, 2007 was $3,166,000 in revenues associated with two contracts to provide consulting and logistical support for international projects in Canada and Africa. Included in the nine months ended October 31, 2006 was $8,798,000 in revenues associated with a contract to provide equipment and supplies to an

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international oil exploration company. Excluding the effect of these activities, the remainder of the operations included in this segment were consistent period over period.

Unallocated Corporate Expenses

Corporate expenses not allocated to individual divisions, primarily included in selling, general and administrative expenses, were $5,760,000 and $16,653,000 for the three and nine months ended October 31, 2007, respectively, compared to $4,230,000 and $13,448,000 for the same periods last year. The increases for the periods were primarily due to wage and benefit increases of $272,000 and $806,000, increased incentive compensation of $102,000 and $517,000, increased compensation to directors of $262,000 and $521,000 and increased share based compensation to employees of $347,000 and $478,000.

Summary of Operating Segment Reconciliation Data
(in thousands)

	Three Months Ended						Nine Months Ended
	October 31,						October 31,
	2007			2006			2007			2006
Revenues
Water and wastewater infrastructure	$	162,255		$	136,586		$	475,604		$	387,607
Mineral exploration		47,380			39,749			130,885			111,615
Energy		10,054			6,814			29,007			17,803
Other		5,537			2,675			9,189			12,662
Total revenues	$	225,226		$	185,824		$	644,685		$	529,687
Equity in earnings of affiliates Mineral exploration	$	2,157		$	1,388		$	6,027		$	2,892
Income before income taxes and minority interest
Water and wastewater infrastructure	$	10,647		$	10,015		$	34,422		$	27,423
Mineral exploration		9,033			7,789			26,075			19,963
Energy		3,263			2,362			9,834			6,340
Other		2,872			829			3,477			3,550
Unallocated corporate expenses		(5,760	)		(4,230	)		(16,653	)		(13,448	)
Interest		(2,517	)		(2,551	)		(7,744	)		(7,180	)
Total income before income taxes and minority interest	$	17,538		$	14,214		$	49,411		$	36,648

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act of 1934. Such statements may include, but are not limited to, statements of plans and objectives, statements of future economic performance and statements of assumptions underlying such statements, and statements of management’s intentions, hopes, beliefs, expectations or predictions of the future. Forward-looking statements can often be identified by the use of forward-looking terminology, such as “should,” “will,” “will be,” “intended,” “continue,” “believe,” “may,” “hope,” “anticipate,” “goal,” “forecast,” “plan,” “estimate” and similar words or phrases. Such statements are based on current expectations and are subject to certain risks, uncertainties and assumptions, including but not limited to prevailing prices for various commodities, unanticipated slowdowns in the Company’s major markets, the risks and uncertainties normally incident to the construction industry and to the exploration for and development and production of oil and gas, the impact of competition, the effectiveness of operational changes expected to increase efficiency and productivity, worldwide economic and political conditions and foreign currency fluctuations that may affect worldwide results of operations. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially and adversely from those anticipated, estimated or projected. These forward-looking statements are made as of the date of this release, and the Company assumes no obligation to update such forward-looking statements or to update the reasons why actual results could differ materially from those anticipated in such forward-looking statements.

Layne Christensen Company provides sophisticated services and related products for the water, wastewater, mineral and energy markets.

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LAYNE CHRISTENSEN COMPANY AND SUBSIDIARIES
CONSOLIDATED FINANCIAL DATA
(in thousands, except share and per share data)

	Three Months						Nine Months
	Ended October 31,						Ended October 31,
	(unaudited)						(unaudited)
	2007			2006			2007			2006
Revenues	$	225,226		$	185,824		$	644,685		$	529,687
Cost of revenues (exclusive of depreciation, depletion and amortization shown below)		164,887			135,502			472,422			391,587
Selling, general and administrative expenses		31,457			26,724			89,977			75,324
Depreciation, depletion and amortization		11,228			8,673			31,927			23,139
Other income (expense):
Equity in earnings of affiliates		2,157			1,388			6,027			2,892
Interest		(2,517	)		(2,551	)		(7,744	)		(7,180	)
Other income, net		244			452			769			1,299
Income before income taxes and minority interest		17,538			14,214			49,411			36,648
Income tax expense		7,688			6,452			21,840			17,052
Minority interest		79			—			79			—
Net income	$	9,929		$	7,762		$	27,650		$	19,596
Basic income per share	$	0.60		$	0.51		$	1.74		$	1.28
Diluted income per share	$	0.59		$	0.50		$	1.70		$	1.27
Weighted average shares outstanding		16,477,000			15,334,000			15,857,000			15,282,000
Dilutive stock options		397,000			190,000			376,000			190,000
		16,874,000			15,524,000			16,233,000			15,472,000
	As of
	October 31,			January 31,
	2007			2007
Balance Sheet Data:
Total cash and equivalents	$	81,535		$	13,007
Working capital		137,381			66,989
Total assets		674,793			547,164
Total debt		60,000			151,600
Total stockholders’ equity		411,993			205,034
Common shares issued and outstanding		19,158,000			15,518,000

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