AquaCell and Corbett Water Technologies Announce Worldwide Distribution Agreement.

Business Editors

RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--Oct. 9, 2001

AquaCell (AMEX:AQA) today announced that it has entered into distribution joint-venture agreements with Corbett Water Technologies ("Corbett"), a subsidiary of S&B Technical Products Inc. (S&B) for worldwide distribution of its products.

S&B is the largest manufacturer and supplier of water gaskets in the world.

"This is a significant step for AquaCell," said Chairman James C. Witham. "We have been working for months to locate a marketing partner which is a known leader in the water industry worldwide and which shares our vision of the great potential growth of the industry."

Witham continued: "We are pleased to be associated with S&B, considering their worldwide reputation in the water industry. In working with both Brad Corbett Sr. and Brad Corbett Jr. over the past several weeks in finalizing this deal, we have not only built a strong business plan together from which to go forward, but more importantly, have established a strong relationship with one another.

"We certainly could not have picked a better partner."

"The Corbett Group of Companies is excited to work with AquaCell in the promotion of their innovative technologies, both domestically and internationally," said Bradford Corbett Jr. "We feel that the combination of this technology and our international and domestic contacts will enable us to build a very successful business."

Under the terms of the agreements, AquaCell will continue to work and develop its current marketing programs, including Roto-Rooter Plumbers and the Government Services Administration, with Corbett being responsible for all other marketing efforts.

The agreements divide domestic marketing and international marketing into two different structures. Under the terms of the domestic sales and marketing agreement, Corbett will distribute AquaCell's products. Global Water-Aquacell will maintain approximately a 58% gross profit margin under the terms of the agreement, while eliminating its incremental sales and marketing expenses.

AquaCell has purchased a 15% stake in Corbett from S&B, and thus, will realize 15% of the profits of Corbett.

Under the terms of the international agreement, a newly formed joint-venture subsidiary will have both marketing and manufacturing rights for AquaCell's products. Products will be manufactured in countries in which S&B has operations, including: Australia, Brazil, Costa Rica, France, Thailand, Mexico and Canada. This newly formed joint-venture subsidiary will be owned 55% by S&B and 45% by AquaCell.

Corbett and S&B, based in Fort Worth, Texas, have developed a global network that stretches from Europe to the Far East, from Africa to the Americas. This network allows S&B to engineer, manufacture and distribute products for business as diverse as pipe, fitting and valve applications in the water industry as well as for the oil and gas industry.

Introducing AquaCell

AquaCell, based in Rancho Cucamonga, manufactures and markets nationwide the only patented system that permanently attaches a five-gallon water bottle to a traditional water cooler, creating a completely closed system.

This Purific(R) water cooler, which has been tested and validated by the Water Quality Association, is equipped with its own state-of-the-art filtration system and automatically refills the permanently attached five-gallon bottle with freshly filtered and purified water every time water is dispensed.

The company's clients, primarily comprised of Fortune 500 corporations, save money in comparison to the cost of bottled water, and the companies are relieved of having bottles to change, bottles to store and the inconvenience of bottled water deliveries. The unique nature of the company's product enables it to market nationwide, tapping into the $5 billion bottled water market.

Safe Harbor, Statement Under the Private Securities Litigation Reform Act of 1995. Certain statements in this news 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, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements include, but are not limited to, statements about: the company's ability to continue relationships with customers, the company's ability to offer its products at competitive prices, the company's ability to maintain its listing on the American Stock Exchange, and the company's ability to use the most current technology for its products.