AquaCell To Spin Off Subsidiary To Stockholders.

RANCHO CUCAMONGA, Calif. -- AquaCell (AMEX:AQA) announced today that it has formed a new subsidiary, Aquacell Water Inc. that it will be spinning off to the holders of common stock of AquaCell Technologies. Aquacell Water will operate as a holding company to acquire companies in the water industry with the first acquisition to be Water Science Technologies Inc. (WST), currently a wholly owned subsidiary of AquaCell Technologies.

AquaCell Technologies' stockholders as of the record date of Jan. 3, 2005, will receive one share of common stock in Aquacell Water for every share of common stock held in AquaCell Technologies. The stock in Aquacell Water will be issued Feb. 2, 2005.

James C. Witham, AquaCell's CEO said: "Many stockholders have asked me recently, 'How can we as stockholders benefit from the increased focus and growing demand in the water industry while continuing to benefit from the growth of our water cooler advertising program?' The answer is simple. We are going to spin off our Aquacell Water subsidiary, that will acquire WST as its initial acquisition of water purification companies, which will benefit all of us as stockholders."

Witham continued: "Most of our stockholders don't realize WST, a company we have owned for over two and a half years, manufactures large water treatment systems, capable of treating from 10 gallons of water per day to millions of gallons of water per day. Nearly every product manufactured requires some level of water treatment or purification. WST provides turnkey solutions - from initial water analysis to design, production, installation and service of systems and has installed systems around the world for large corporations and governments to address a myriad of needs, including desalination plants, high purity water systems for the micro-chip industry, purification systems for water bottling plants and restaurants, spot free rinse systems for car washes and many other applications. The company will continue to build customized systems; however, it intends to focus on four primary targets, whereby specific product lines can be produced. These target markets include bottling plants and water stores, food service, car washes and emergency water systems."

Witham concluded: "In articles of General Electric's recent acquisition of Ionics, it was reported that GE estimates that the global water services market is about $360 billion. It is our intention to file a registration statement for Aquacell Water Inc. in 2005, to become a publicly trading company."

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 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 Amex; and our ability to use the most current technology for our products.