The good news

DriWater, Mr. Lanahan adds, has expanded greatly since Mr. Paternoster and Mr. Smith took over.|

DriWater, Mr. Lanahan adds, has expanded greatly since Mr. Paternoster and Mr. Smith took over. The partners have successfully marketed the gel and its delivery system to yard and garden departments at Wal-Mart and Friedman Bros. Home Improvement Center, and Orchard Supply Hardware.

According to Mr. Paternoster, DriWater has also signed a deal with Rainbird to market the product.

"Our domestic operations are really picking up," he says. "We'll be able to use Rainbird's extensive distribution infrastructure to market DriWater. And we've just signed a purchase order for $275,000 for a pipeline being built in Nevada."

DriWater is used in erosion control, where new plantings need to be watered steadily while they take root. The gel, which is delivered from a pouch directly to a plant's root system, will release moisture for up to three months.

Mr. Paternoster travels frequently to Egypt and Saudi Arabia, where governments are experimenting with DriWater to reclaim desert lands. The company is building a factory in Saudi Arabia to produce the gel there.

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