Bio-Hydration Research Lab More Than Doubles Sales, Expands Executive Team, Prepares to Expand Production Capacity by 650%; Second Year of Triple-Digit Sales Increases for Penta Water.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--Jan. 22, 2003

Bio-Hydration Research Lab Inc., the makers of Penta(R) water, announced today that last year it more than doubled sales -- recording a sales increase of 125% versus 2001.

This is the second consecutive year of phenomenal growth for Penta water. The company has also consistently maintained profitability -- reporting a profit in each of the past five quarters.

Penta water, which was introduced in 2000 in limited health food stores, has seen consistent sales increases due to expanding distribution and same-store sales growth. Penta is now sold in over 3,500 health and specialty food stores, as well as via a network of over 700 health care practitioners. Penta also recently made its first entry into the mainstream food store market with distribution in over 30 Basha's, an Arizona-based grocery chain.

Bio-Hydration is a privately held company.

Company expands executive team

In order to facilitate and support this continued accelerated growth, Bio-Hydration also announced that it has expanded its executive team.

Joining the company as Vice-President of Sales is Jim Peters. Jim has 22 years of sales and management experience and a track record of demonstrated success with organizations such as Pepsi, Del Monte, Maxell and Upper Deck.

"I am very excited to have been given the opportunity to take Penta Water to the next level," noted Peters. "Selling a product that helps so many people feel better, makes it a very strong selling proposition! Our existing sales organization and retail partner relationships will become stronger in 2003. New resources such as direct sales personnel, brokers and distribution partners will help increase sales and market presence."

Also joining the company's executive team is Dave Donaldson, the company's director of marketing and public relations. Dave brings to the company 13 years of sales and marketing experience with ConAgra Foods and The E&J Gallo Winery.

"I am truly thrilled at the huge market potential of Penta Water, and grateful to have the opportunity to play a leadership role in introducing Penta to a broader consumer base," said Donaldson. "Penta is a product that has such a significant, relevant point of difference -- one that can't be replicated by competitors -- it's a marketer's dream. Having such a great product gives us a huge head start on carving out significant market share."

New production facility to have more than 7 times current capacity

As the rapid sales growth of Penta water has exceeded already aggressive sales goals, production capacity has been stretched. Production at the Mira Mesa facility has been expanded several times over the past year, but the company is running out of room.

To meet the growing demand, Bio-Hydration is building a new, state-of-the-art bottling plant in Carlsbad, Calif. Slated for start-up in May of this year, the new line will be capable of producing up to 650% more than the current line's maximum capacity.

"It's an exciting time for Penta water," stated Founder and CEO Bill Holloway. "It's encouraging for us to see sales growth and to see our company grow, but it's especially rewarding to see that Penta is making a difference in more and more people's lives.

About Penta water

Penta is the world's only patented purified water. It is created by a proprietary process which causes water molecules to form small, stable clusters -- different from other drinking waters, in which water molecules bond with their neighbors to form large clusters that are too large to efficiently enter cells.

Penta's unique structure is responsible for its many beneficial properties. Among these are faster, more efficient hydration, restoration of normal cellular pH, and increased cell survivability.

Penta water's unique properties and benefits have been validated by studies conducted at leading research institutions:

-- The General Physics Institute in Moscow conducted research using Spontaneous Raman Spectroscopy which demonstrated a clear and significant difference in the molecular structure of Penta water as compared to tap, distilled and various types of drinking water. This study is slated for publication in The Journal of the Physics of Vibrations.

-- A test was conducted in conjunction with the University of California at San Diego and the Scripps Research Institute which indicated that Penta water hydrates cells 13.4% faster than regular purified water.

-- Cell survivability research was completed at the University of Moscow which showed a dramatic increase in intracellular pH alkalinity in cells exposed to Penta water. The increase was six times that measured in cells exposed to regular purified water.

-- Researchers at the University of Moscow also found an increase in the number of cells surviving in mediums prepared using Penta water rather than normal purified water. Cells in the Penta medium showed a survival rate 266% greater than those in the control medium.

Additional information is available on the company's Web site at www.pentawater.com. Detailed results from studies cited above are available directly from Bio-Hydration Research Lab.