AquaCell Signs Agreement With Rite Aid.

RANCHO CUCAMONGA, Calif. -- AquaCell (AMEX:AQA) announced today that it has signed a Water Cooler Placement Agreement with Rite Aid Corp (NYSE:RAD), pursuant to which AquaCell will be installing its free patented Aquacell 1000 Bottled Water Cooler System in the pharmacy areas of Rite Aid stores.

Rite Aid, the third largest drug chain in America with more than 3000 stores, conducted an extensive test on the performance of Aquacell's coolers in their corporate office as well as in several stores. Under an initial term of five years, Rite Aid has agreed that AquaCell's water coolers will be installed on a national basis at no cost to Rite Aid, and that AquaCell may sell the advertising space on the bottle band. The initial rollout, expected to be completed by the end of December, will entail replacing water fountains in approximately half of the stores. Aquacell has been manufacturing coolers in anticipation of this agreement and is in position to use current inventory to supply the water coolers for these initial locations without any delay.

James Witham, AquaCell's CEO said, "We are excited that the third largest drug store chain in the country has signed up for our program. The signing of this agreement is significant to the Company because the placement of the coolers represents the key first step in our revised business model to generate revenues through the sale of advertising on the bottle band of our water coolers. We are excited by the potential advertising revenue stream that could be generated from the placements in Rite Aid stores over the term of the agreement."

Mr. Witham continued, "Replacing outdated water fountains in their stores with our free bottled water coolers complements Rite Aid's desire to provide excellent customer service and satisfaction to their shoppers. Coupling this with the advertising on the bottle band, we believe Rite Aid will enjoy a two pronged benefit of satisfying customers and increasing impulse sales."

By having the free Aquacell Bottled Water Cooler Systems installed in the store, whereby the store is providing a refreshing cup of water, customers can easily take pill-form medication right away. As the customer takes a drink, the advertisement on the cooler gets face-to-face impact with the consumer.

Mr. Witham concluded, "This is only the beginning. As retailers continue to seek means to enhance customer service, we expect to sign other contracts in the near future for our free cooler offer to other drug chains, supermarkets and mass merchandisers."

About AquaCell

AquaCell, based in Rancho Cucamonga, Calif., 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, 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 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.