Aqua Vie Beverage Corporation and Lyons Magnus Enter Three Year Production and Marketing Agreement.

KETCHUM, Idaho--(BUSINESS WIRE)--Nov. 19, 1998--Aqua Vie Beverage Corporation (OTC:AVBCD) announced today that it has entered into a definitive production agreement with Lyons Magnus whereby Lyons Magnus has agreed to provide bottling production to Aqua Vie for an initial three years.

This will include production for export until Delifruits, Aqua Vie's aseptic bottler in Valence, France, comes on line. Lyons Magnus has a reputation of industry leadership and maturity developed over their 146 year history beginning in 1852.

Substantial progress in advanced discussions on the exact terms of a strategic marketing and licensing agreement between the two companies also took place. The terms of the initial three year strategic alliance and potential licensing agreement will include that Lyons and Aqua Vie will begin a feasibility study on the potential distribution of each of Aqua Vie's product lines through Lyon's worldwide, proprietary "Food Services" Distribution System, that includes over 1,100 distribution outlets, worldwide, and that Lyons and Aqua Vie will prepare a joint business and marketing plan, whereby Lyons could bottle their "all natural", shelf stable line of Smoothies into 10 oz single serve bottles as "Aqua Vie Smoothies" for the retail market place. The smoothie line has been a very successful item in Lyon's wholesale food distribution network. The final plan parameters will depend largely on a trial production run of their smoothie product in this proposed format.

Within this planning effort, Aqua Vie has also concluded the potential marketing impact of utilizing a "sleeve shrink wrap labeler" for the introduction of their new, full bottle label designs on all AVBC products for their 1999 worldwide distribution launch. Aqua Vie has agreed to acquire such labeler for installation in the Lyons facility as soon as possible.

Tom Gillespie, president and founder of Aqua Vie, stated that, "One very significant aspect of this form of licensing arrangement is that depending upon consumer acceptance (which Aqua Vie products have always exhibited in retail trial), it has the potential to provide substantial monthly cash flow revenues for Aqua Vie without the cash intensive requirements that are usually associated with production and handling of large quantities of finished goods. With the addition of Aqua Vie's new full bottle label designs, the overall consumer acceptance should be greatly enhanced."

Aqua Vie produces Hydrator(tm), a low calorie all natural product line of seven lightly flavored non-carbonated spring waters, that were designed to increase one's personal consumption of water. The underlying technology also serves as the new delivery system for Aqua Vie's "nutritionally fortified" E Line(tm): Elixir(tm), Empower(tm), and Ecstasy(tm), its nutritionally specific Aquaceuticals(tm), and Aqua Vie's Non-Alcoholic Wine Beverages made from spring water.

For further information on Aqua Vie Beverage Corporation, visit our web site at: http://www.aquavie.com.

This release may contain forward-looking statements that involve risks and uncertainties including, without limitation, continued acceptance of the company's products and services, increased levels of competition, new products and technological changes, the company's dependence upon financing, third-party suppliers and intellectual property rights, and other risks as may be detailed from time to time in the company's federal filings, annual report, offering memorandum, or prospectus.