American Water Star, Inc. - General Update.

LAS VEGAS -- American Water Star, Inc. (Pink Sheets: AMWS) is pleased to announce that it expects to be back in operation soon with a new direction and business plan, new advisors, a tightly focused new corporate strategy and is developing strong alliance partners.

The Company's Chief Executive, Roger Mohlman, recapped several major contributors to the Company's recent difficulties that caused it to cease operations. These issues included, but were not limited to, the inability to complete timely or accurate audits and required filings; a hedge fund that foreclosed on Company notes which resulted in the loss of substantial assets; a mass merchandising customer of the Company whose product and raw materials expired; and a false allegation lodged against the Company for non-payment of rent during the Katrina aftermath, regarding which litigation the Company subsequently prevailed. Mr. Mohlman also stated that the above issues notwithstanding the Company's current accounting matters have been successfully resolved and the Company is working toward bringing its SEC filing current. He stated that interested parties should expect to see AMWS back soon.

AMWS also rescinds the Press Release dated December 10, 2003, awarding "ShowIt, Inc." a contract for all in store demonstrations. Because ShowIt, Inc. was unable to produce the corporate and financial documents required to finalize the deal, the contract was terminated.

Forward-Looking Statements 

This press release may contain statements that constitute "forward-looking statements" as defined under U.S. federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "establish," "project" and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. These risks include, but are not limited to, our ability to meet our working capital needs to continue operations; management's ability to seek additional funding or potential merger and acquisition candidates; any additional work that may be required for our financial statement preparation to bring the Company compliant with its 12g reporting obligations; the actual amount of annual sales of AMW water; changes in economic conditions; changes in the non-alcoholic beverages business environment, including actions of competitors and changes in consumer preferences; our ability to capture market share; the effectiveness of our advertising and marketing programs; fluctuations in the cost and availability of raw materials or necessary services; our ability to avoid production output disruptions; our ability to achieve earnings goals; regulatory and legal changes; our ability to penetrate developing and emerging markets; litigation uncertainties; and other risks discussed in our filings with the SEC, including our Annual Report on Form 10-KSB, Quarterly Reports on Form 10-QSB, and Current Reports on Form 8-K, which reports are available from the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward-looking statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.