CALCOL - CLCL - Completes US$3.0 Million Private Placement: Intends to Apply to The OTC Bulletin Board This Year.

Business Editors

CLEVELAND & BEIJING, China--(BUSINESS WIRE)--June 4, 2004

CALCOL INC. (OTC:CLCL) announced completion of the sale of a US$3.0 million private placement of CALCOL's securities with accredited, institutional and overseas investors in the form of common and preferred stock.

The USE OF PROCEEDS from the offering is the payment of the second and final payment of US$1.1 million on May 13, 2004 (total payment in full of US$2.1 million) of the buy-out of CALCOL's 20% minority partner China National Food Industry Group Corporation in the 80/20 joint venture Sanhe Meile Soft Drinks Co. Ltd. and for working capital for equipment, upgrading of computerized accounting systems to USGAAP, hiring of new accounting and bottling operations management staff, appraisals, key man life insurance and other insurance, and market entry of CALCOL's MALIBU-COLA, MALIBU SUNRISE ORANGE, MALIBU SURF'S UP LEMON LIME, MALIBU DIET DEE-LITE COLA, MALIBU LEMON SQUEEZE CARBONATED LEMONADE, MALIBU SPARKLE GREEN APPLE, and other products into an estimated 3000 retail store shelves in Beijing, Tianjin and Hebei Province this summer. CALCOL's products are currently sold in more than 500 retail stores in the area around Beijing. The joint venture is now being converted to a Wholly Owned Foreign Enterprise Company 100% owned by CALCOL INC.

In other news, CALCOL has announced CALCOL's intention, once CALCOL's internal accounting and external reporting system are fully upgraded to USGAAP, to release quarterly unaudited and certified audited consolidated annual financial reports in US GAAP, and to endeavour to apply for a listing on either the Over the Counter Bulletin Board or Nasdaq if and when CALCOL is able to meet the qualifications for such listing (which qualification cannot be assured at this time.). CALCOL INC. has appointed a new member to CALCOL's Board of Directors, Mr. Xiao Jian Gong, Vice President of Marketing and Operations of Sanhe Meile Soft Drinks Co. Ltd. to replace a Director who resigned; thus increasing the number of Board Members to seven. CALCOL's other officers and directors include Norman C. Kaplan, Chairman and President, Ji Jun, Vice President, David B. Orlean JD, Sr. Vice President, and Secretary Treasurer, Geoffrey Porter JD, Director, Lewis Sperber JD-CPA Director, William F. Kubicek DDS, Director. CALCOL has also announced CALCOL's intention to hold its Annual Meeting of Shareholders and Board Meeting in Beijing China at the Sanhe Meile Soft Drinks Co. Ltd. facility (Beijing East Yanjiao Economical & Technical Development Zone, Beijing, China 101601) November 11, 2004, and to invite all shareholders, beverage analysts and the press to tour the new fully operational facilities in Beijing on November 10, 11, and 12th of this year. CALCOL owns and operates a concentrate plant capable of producing 800,000 units per year of concentrate (enough to bottle 1.68 billion liters of finished carbonated soft drinks) and a 110,000 square foot bottling plant capable of producing 6 million standard cases of PET bottles and 7 million standard cases of aluminum cans of carbonated soft drinks, ice tea products, and bottled water annually. CALCOL intends to follow up this announcement with further notification of all shareholders in writing confirming the exact date, place and time of the Board Meeting and Annual Meeting of Shareholders at the appropriate time.

CALCOL INC. (Delaware) common stock (par value $.001) trades OTC in the United States under the symbol "CLCL" (cusip No. 1286991054). CALCOL INC. has approximately 100 million common shares authorized, approximately 97.7 million common shares currently issued and outstanding; the Company has 10 million "blank check" Preferred Shares authorized, 1 million Class A Convertible Preferred Shares (par value $1.00) (restricted upon transfer, convertible to 10 million common shares) issued and outstanding; and will from this Private Placement of US$3.0 million have an additional 2.9 million Class B 8% Convertible Preferred Shares (par value $1.00)preferred shares (par value $1.00) issued and outstanding (restricted upon transfer, paying an 8% simple annual interest dividend, which may be incrementally put to the Company over a period of five years, and may be called by the Company after two years, with an option to convert to common shares at US$0.20 (TWENTY CENTS) per share).

CALCOL INC. common stock and preferred stock involves a very high degree of risk and is suitable only for accredited, overseas, and/or institutional investors. This announcement is for information only, contains forward looking statements which should not be relied upon in any investment decision, and is not an offer to buy or sell securities.

For further information, please contact: Mr. Ji Jun, Vice President and Director CALCOL INC. and President Sanhe Meile Soft Drinks Co. Ltd. and Malibu Flavours (CALCOL INC. 100% subsidiaries) or Norman C. Kaplan Chairman and President CALCOL INC. and Chairman, Sanhe Meile Soft Drinks Co. Ltd.), Beijing East Yanjiao Economical & Technical Development Zone, Beijing China 101601. Tel: [phone]. Fax: [phone], www.malibu-cola.com.cn (Chinese language website).