AquaCell Announces Results of Quarter And Six Months Ended Dec. 31, 2003.

Business Editors

RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--Feb. 13, 2004

AquaCell (AMEX:AQA) announced today the results for the quarter and six-months ended Dec. 31, 2003.

Revenues for the quarter ended Dec. 31, 2003 were approximately equal to the revenues from the comparable period of the prior year. For the six months ended Dec. 31, 2003 revenues were $401,000 representing a decrease of $737,000 from the same period of the prior year. Virtually the entire decrease was attributable to the lack of sales to Corbett Water Technologies Inc. (Corbett) the company's former exclusive distributor of its patented self-filling water coolers. The company went through a lengthy negotiation process to recover its marketing rights, from Corbett and its parent company S&B Technical Products Inc. (S&B), during which time the company was impeded from pursuing new marketing avenues or channels of distribution. As a direct result of the Corbett and S&B distribution agreements and return of the exclusive marketing rights, the company has incurred significant non-cash losses, aggregating $2,040,000 through Dec. 31, 2003, since the inception of these agreements in October of 2001.

Net loss attributable to common stockholders on a consolidated basis for the three months ended Dec. 31, 2003 was $1,244,000 or $0.12 per share, as compared to $550,000 or $0.06 per share for the same period of the prior year. The loss for the three months ended Dec. 31, 2003 includes $414,000 or $0.04 per share attributable to non-cash expenses for stock-based compensation and the fair value of the Corbett derivative, as compared to $55,000 or $0.01 per share for the same period of the prior year.

Net loss for the six months ended Dec. 31, 2003 was $2,388,000 or $0.24 as compared to $775,000 or $0.04 per share. The loss for the six months ended Dec. 31, 2003 includes $996,000 or $0.09 per share attributable to non-cash expenses for stock-based compensation and the fair value of the Corbett derivative as compared to $100,000 or $0.01 per share for the same period of the prior year.

During the six months ended Dec. 31, 2003 the company moved forward with the restructuring of its marketing program for its patented self-filling water coolers. A component of this program includes the cooler advertising program through its Aquacell Media subsidiary whereby the company has started shipping and installing coolers in drug stores and health care facilities. Aquacell Media will retain ownership of these coolers and is selling advertising on the cooler's bottle band for health related and/or personal care items.

The period ended December 2003 represented the first period during which the company has had the ability to restructure its marketing plan and form new sales and marketing alliances. As a part of this restructuring, the company has engaged several new marketing partners, including internationally renowned security experts Beau Dietl & Associates, providing access to major corporations for the marketing and sales of the company's products that it expects to come to fruition over the next several months and provide significant revenues for the company.

Summary of Operating Results:

                  Three Months Ended          Six Months Ended
                    December 31,                 December 31,
                   2003       2002             2003       2002

Net revenues $   200,000   $  206,000    $   401,000    $1,138,000

Net loss
attributable
to common
stockholders $(1,244,000)(a)$(550,000)(b)$(2,388,000)(a)$ (775,000)(b)

Net loss per
common share $     (0.12)(a)$   (0.06)(b)$     (0.24)(a)$    (0.04)(b)

Weighted average
shares
outstanding   10,697,000    8,601,000     10,023,000     8,601,000

(a) Includes $996,000 or $0.09 per share for the six-month period
and $414,000 or $0.04 per share for the three-month period
attributable to non-cash expenses for stock-based compensation and
fair value of derivative.
(b) Includes $100,000 or $0.01 per share for the six-month period
and $55,000 or $0.01 per share for the three-month period attributable
to non-cash expenses for stock-based compensation.

Introducing AquaCell

AquaCell, based in Rancho Cucamonga, manufactures products for water filtration and purification through its two operating subsidiaries, Global Water-Aquacell Inc. and Water Science Technologies Inc. Its products address various water treatment applications for industrial, commercial, institutional and residential applications. These applications range from providing purified drinking water -- through its point-of-use patented self-filling Purific(R) Water Cooler and production of water bottling plant equipment -- to processing water for ultra-pure purposes, such as micro-chip and pharmaceutical manufacturing.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Forward-looking statements include, but are not limited to, statements about: our ability to continue relationships with customers; our ability to offer our products at competitive prices; our ability to maintain our listing on the American Stock Exchange; and our ability to use the most current technology for our products.