AquaCell Reports Results of Quarter Ended September 30, 2004.

RANCHO CUCAMONGA, Calif. -- AquaCell (AMEX:AQA) announced today the results for the quarter ended September 30, 2004.

James Witham, AquaCell's Chairman and Chief Executive Officer said, "During the quarter ended September 30, 2004, we diligently worked to finalize agreements for our newly launched 'Message On The Bottle' advertising program through our Aquacell Media subsidiary. We are extremely excited that subsequent to the end of the quarter we signed our first Water Cooler Placement Agreement with Rite Aid, the third largest drug chain in America, and have secured our first advertiser, Unilever, one of the world's largest consumer products companies." Mr. Witham continued, "We are continuing to work to close agreements with additional companies with whom we have been working for quite some time for both locations and advertising."

During the three months ended September 30, 2004 on a consolidated basis, revenues were $199,000 as compared to $201,000 for the similar period of the preceding year.

Net loss on a consolidated basis, attributable to common stockholders, for the three months ended September 30, 2004 was $877,000 or $0.06 per share, as compared to $1,144,000 or $0.12 per share for the same period of the prior year. The decrease in the loss is primarily attributable to the decrease in fair value adjustment of derivative in the amount of $207,000.

Summary of Operating Results:
                                             Three Months Ended
                                               September 30,

                                               2004           2003
Net revenues                               $199,000       $201,000

Net loss attributable to common
 stockholders                             $(877,000)(a)$(1,144,000)(b)
Net loss per common share                    $(0.06)(a)     $(0.12)(b)


Weighted average shares outstanding      14,576,000      9,349,000

(a) Includes $242,000, or $0.02 per share, attributable to non-cash
expenses for stock based compensation.

(b) Includes $582,000, or $0.06 per share, attributable to non-cash
expenses for stock based compensation and fair value adjustment of
derivative.

For a complete report, please refer to our Form 10QSB.

INTRODUCING AQUACELL

AquaCell, based in Rancho Cucamonga, CA, through its Aquacell Media, Inc. operating subsidiary, installs its patented self-filling Aquacell 1000 Bottled Water Cooler Systems free of charge into various locations, including retail establishments. Aquacell Media retains ownership of the coolers, and revenue is generated through the sale of targeted advertising on the band of the cooler's permanently attached five-gallon bottle of products and/or services pertinent to the location, similar to the concept of billboard advertising. The Company also manufactures products for water filtration and purification through its two operating subsidiaries, Water Science Technologies, Inc. and Global Water-Aquacell, 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 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.