AquaCell Reports Results of Quarter and Nine Months Ended March 31, 2005.

RANCHO CUCAMONGA, Calif. -- AquaCell (AMEX:AQA) announced today the results for the quarter and nine months ended March 31, 2005.

During the quarter ended March 31, 2005, our AquaCell Media subsidiary generated its first advertising revenues with an inaugural promotion for Unilever's Dove(R) Cool Moisture body wash and bar soap. The Dove Cool Moisture advertising was displayed on our coolers in select Rite Aid stores nationwide, as well as on coolers installed in Duane Reade drug stores in the New York Metropolitan area. In a report the company received from Unilever, the cooler advertising provided a 34% sales lift for the Dove Cool Moisture products, validating the value of the "Message on the Bottle" advertising. The data, which was gathered over a four-week period from Duane Reade's cash register scanners showed that sales of Dove Cool Moisture increased steadily in all stores; however, the stores with "Message on the Bottle" advertising had consistently higher sales of both bar soap and body wash, averaging 34% higher than stores without cooler advertising. The cooler advertising was the only variable in the test.

During the three months ended March 31, 2005, on a consolidated basis, revenues increased nearly 149% to $291,000 as compared to $117,000 for the similar period of the preceding year, resulting primarily from an increase in sales by our WST subsidiary and revenues generated by our AquaCell Media subsidiary. Net loss on a consolidated basis, attributable to common stockholders, for the three months ended March 31, 2005, decreased to $873,000 or $0.05 per share, as compared to $942,000 or $0.08 per share for the same period of the prior year.

During the nine months ended March 31, 2005, on a consolidated basis, revenues increased to $601,000 as compared to $518,000 for the similar period of the preceding year, resulting primarily from an increase in sales by our WST subsidiary and revenues generated by our AquaCell Media subsidiary. Net loss on a consolidated basis, attributable to common stockholders, for the nine months ended March 31, 2005, decreased 22% to $2,614,000 or $0.16 per share, as compared to $3,330,000 or $0.31 per share for the same period of the prior year.

Summary of Operating Results:

                                             Three Months Ended
                                                  March 31,
                                            2005            2004

Net revenues                               $291,000       $117,000

Net loss attributable to common
 stockholders                             $(873,000)(a)  $(942,000)(b)

Net loss per common share                    $(0.05)(a)     $(0.08)(b)
Weighted average shares outstanding      17,906,000     12,274,000


                                              Nine Months Ended
                                                  March 31,
                                            2005            2004

Net revenues                              $601,000        $518,000

Net loss attributable to common
 stockholders                          $(2,614,000)(a) $(3,330,000)(b)

Net loss per common share                   $(0.16)(a)      $(0.31)(b)
Weighted average shares outstanding     16,046,000      10,768,000

(a) Includes $262,000 or $0.02 per share for the three months and
    $745,000 or $0.05 per share for the nine months ended March 31,
    2005, attributable to non-cash expenses for stock-based
    compensation to independent consultants.

(b) Includes $233,000 or $0.02 per share for the three months and
    $835,000 or $0.08 per share for the nine months ended March 31,
    2004, attributable to non-cash expenses for stock-based
    compensation to independent consultants.

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

INTRODUCING AQUACELL

AquaCell, based in Rancho Cucamonga, 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 Water Science Technologies Inc. subsidiary. Its products address various water treatment applications for industrial, commercial, institutional and residential applications. These applications range from providing purified drinking water to processing water for industrial and commercial 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.