American Water Star Inc. Continues Shipping Water for Katrina Victims.

LAS VEGAS -- American Water Star Inc. (AMEX: AMW) is proud to inform our valued shareholders that our contract from Lipsey Mountain Spring Water Co., the sole provider of disaster relief water for FEMA (www.femawaternetwork.com), has moved our initial ship date to immediate due to the disastrous Hurricane Katrina. We started shipping on Aug. 30 and will continue until our contract is fulfilled. Lipsey has asked that AMW provide 100% of our water production capabilities from all four plants located in Phoenix, Jacksonville, Magnolia and Kentwood. Estimated production capabilities are 125 truckloads of water per day, seven days per week.

"We are very sad to hear about the devastation that has occurred in the southeastern part of the United States. We are proud to be selected to assist Lipsey on behalf of FEMA to provide safe drinking water to the survivors of Hurricane Katrina," said Roger Mohlman, CEO of AMW. "We are doing everything in our power to run 24 hours a day to fulfill the need for safe drinking water."

About American Water Star Inc.

American Water Star Inc. ("AMW") is a publicly traded company and is engaged in the beverage bottling industry. Its product brands are licensed and developed in-house, and bottled in strategic locations throughout the United States. AMW's 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 AMW, 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 product line consists of four branded beverages: Geyser Sport; Geyser Fruit; Geyser Fruta; and Hawaiian Tropic. Geyser Sport is a sugar-free, calorie-free, carb-free fruit-flavored beverage fortified with vitamins and calcium, offered in eight different fruit flavors. Geyser Fruit is a non-carbonated water with a low sugar content, also offered in eight different flavors. Geyser Fruta is targeted to the Hispanic market and includes authentic Latin-flavored beverages. Our Hawaiian Tropic products feature sugar-free, no carbohydrate, caffeine-free, sodium-free tropical drinks offered in four flavors.

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, the actual amount of annual sales of AMW water for disaster relief; the frequency of presidentially declared emergencies; AMW's production capabilities; 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.