American Water Star, Inc. Signs Exclusive Agreement With IQ Drinks, Inc.

Business Editors

LAS VEGAS--(BUSINESS WIRE)--Dec. 2, 2003

American Water Star, Inc., (OTCBB:AMWS) is pleased to make the exciting announcement that an exclusive agreement has been reached with IQ Drinks, Inc., for the United States rights to IQ's proprietary packaging materials as well as beverage processing and filling equipment.

IQ Drinks is one of the world's most innovative manufacturers of flexible packaging materials as well as processing and filling equipment.

IQ Drinks, Inc. is a conglomerate from South America's leading packaging companies representing La Parcela, Brio Corporation, Maper, and Litoplas.

"With our newest technology and American Water Star's truly outstanding beverage lines, IQ can help American Water Star expand their current product line using additional packaging solutions, processing technology and filling solutions. Currently AMWS utilizes plastic PET bottles exclusively. IQ's single serve film pouch technology opens up an innovative packaging solution, complementing their existing lines," said IQ's General Manager, Juan Munera. "Working with AMWS will be very exciting as we implement our innovative packaging with their aggressive healthy living approach to their beverages. In line with their vision, our packaging is environmentally conscientious. We look forward to assisting AMWS in expanding their markets into Central and South America as well as Asia and Europe. Their products are outstanding."

IQ Drinks, Inc., has established a proven 9 year track record of providing flexible packaging solutions and superior technology to companies throughout Central and South America, assisting such companies as: BEPENSA, which bottles Coca-Cola for Mexico, BARBARIA, part of SAB-Miller, which is South America's largest brewery and POSTOBON, the largest independent bottler of soft drink manufacturing in Columbia & Honduras manufacturing various products for Proctor & Gamble, Frito-Lay, and Kimberly-Clark.

"This is a fantastic opportunity for our companies and consumers. Bringing our innovative packaging together with American Water Star's healthy, no calorie and no sugar products, which include Hawaiian Tropic and Geyser Sport, is very exciting," stated IQ Drinks, Inc. Partner, Jose Luis Mora. "AMWS is such an excellent company. We have spent a great deal of time with the CEO, Roger Mohlman, at their Las Vegas, Nevada offices and feel completely confident in his ability to implement our serving pouch container into the United States beverage market with AMWS beverages. The test market results of their beverages in the pouch have been outstanding. As part of our agreement, IQ Drinks will assist in the installation and operations of the new packaging plants for a two year period."

"IQ offers some of the most exciting and environmentally friendly packaging in the world today," according to David McGurk, AMWS's VP of Operations. "We are on target and looking forward to installing over 62 IQ filling systems in 8 of our production facilities around the US. The first IQ filling system should be arriving in our new Jacksonville, Florida plant by February 15, 2004."

"I feel this is our most significant release to date," states Roger Mohlman, CEO of American Water Star. "IQ Drinks, Inc. reputation for quality, while delivering quantity, is significant to American Water Star as we continue the leap forward in our no and low carb beverage line. This relationship and partnership allows AMWS to offer our customers the same great tasting beverages in dual choices in packaging. The arrival of our first eight film pouch filler operations is timely in many ways. Our projections for orders are tremendous. This will put us in a league of our own."

Mohlman added, "The pouch will be marketed under the name 'BagPax(R).' 'BagPax(R)' pouches are the perfect packaging for kids. Easy to open, easy to carry, fun to drink and, most important, cost effective for schools, retailers and consumers. The pouches will be available in three sizes, 6.75 fl. oz for schools and 4 fl. oz. and 8 fl. oz. for retail. 'Bagpax(R)' cost significantly less to produce than our PET bottles."

While AMWS plants are being installed throughout the United States, IQ Drinks will manufacture and co-pack in one of their existing Columbian plants. First deliveries of initial quantities are two 40' containers per day, six days a week containing 44,080 'BagPax(R)' pouches per container. The first run of 'BagPax(R)' will be filled with Geyser Sport, the award winning sugar-free, calorie free and one carb beverage fortified with vitamins and calcium in 5 great flavors; Fruit punch, Citrus punch, Wildberry, Kiwi-Strawberry and Cherry.

About: American Water Star, Inc.:

American Water Star Inc. ("AMWS") is a publicly traded company, OTC BB: AMWS, and is engaged in the beverage bottling industry. Its product brands are both licensed and developed in-house, and bottled in strategic locations throughout the United States. AMWS' beverage products are sold by the truckload, principally to distributors, who sell to retail stores, corner grocery stores, convenience stores, schools and other outlets.

At AMWS, we believe our great-tasting, new zero sugar, zero calorie flavored water beverages have positioned us to capture a large share of the market for healthy flavored waters. Our products include: Hawaiian Tropic -- our latest product featuring a sugar-free, no carbonation, caffeine-free, sodium-free tropical drink. Hawaiian Tropic flavors include Strawberry Kiwi, Kiwi-Lemon Lime, Orange Guava and Pineapple Grapefruit. For the grade school age children we are introducing Geyser Sport and Aqua Fresca Sport -- our new non-sugared, 0 calorie, 0 carbohydrates, 0 sodium, vitamin and mineral-enriched, fruit-flavored beverage brand. Our other premium beverages include; Geyser Fruit Beverages -- our line of eight different fruit-flavored waters which have proven to be popular with consumers and Geyser Fruta -- our Latin line of seven different fruit-flavored beverages.

Statements herein express management's beliefs and expectations regarding future performance and are forward-looking and involve risks and uncertainties, including, but not limited to, the ability to negotiate outstanding prior debts of acquired companies; properly identify acquisition partners; adequately perform due diligence; manage and integrate acquired businesses; raise working capital and secure other financing; respond to competition and rapidly changing technology; deal with market and stock price fluctuations; and other risks. These risks are and will be detailed, from time to time, in AMWS' Securities and Exchange Commission filings, including Form 10-KSB for the year ended Dec. 31, 2002, and subsequent Forms 10-QSB and 8-K. Actual results may differ materially from management's expectations.