American Water Star Gains Foothold in Phoenix Schools.

Business Editors

LAS VEGAS--(BUSINESS WIRE)--Sept. 30, 2003

American Water Star (OTCBB: AMWS) is pleased to announce that they have received their first purchase order for beverage from the Phoenix Union High School System. The company anticipates this initial order to ship during the month of October.

"This isn't a big surprise," stated Roger Mohlman, CEO & president of American Water Star Inc. "Schools across the country are responding to our line of great tasting and healthy beverages. The staff at the Phoenix School District are responsible individuals, looking out for the best and most healthy products for their students. Our Geyser Fruit line of beverages as well as Hawaiian Tropic beverage fit the bill of a healthy alternative to sugar-laden sodas and fruit juices. We are confident that this is just the beginning of our distribution throughout the state of Arizona."

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 Power Punch -- our new non-sugared, zero calorie, zero carbohydrates, zero 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; Geyser Fruta -- our Latin line of four different fruit-flavored waters; and Cool Luc -- our licensed underground extreme energy drinks are a favorite among the hip adult market.

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.