CALCOL INC. (CLCL) MALIBU-COLA BEVERAGE Focus on Diet Pop in China: First U.S. Company to Sell Wide Range of Diet Products in China as a Healthier Alternative for Children and Young Adults.

BEIJING & CLEVELAND -- CALCOL INC. (OTC:CLCL) (Delaware) which owns the MALIBU-COLA BEVERAGE CO. LTD. in Beijing announced today that its strategic plan is to focus its marketing efforts on DIET products in China, particularly towards children and young adults.

"CALCOL applauds the recent agreement struck in the United States between industry giants Cadbury Schweppes PLC, Coca-Cola Co., PepsiCo Inc. and the American Beverage Association, whereby those companies will sell only diet sodas to high schools. Only water, unsweetened juice and low-fat milk will be sold to elementary and middle schools," said CALCOL's Chairman and President Norman C. Kaplan. "We intend to be the first U.S. company to follow this policy in China. Adult onset Type II Diabetes and obesity as well as heart disease due to dietary factors as well as heredity are a growing problem in China, both for children and adults, and our company emphatically wants to be part of the solution and not part of the problem. We will not only make HEALTHIER alternatives in the form of a full range (6 flavors) of DIET sodas immediately and widely available, and we intend to initiate a health education campaign in China by the distribution, with our DIET PRODUCTS, of brief printed brochures in Chinese in consultation with leading dieticians and physicians in order to help educate the Chinese public (especially schoolchildren) on the benefits of a lifestyle which includes balanced diet of proteins, fruits and vegetables and milk products and juices, as well as regular exercise, with carbonated soft drinks consumed moderately and HEALTHIER alternatives in the form of DIET flavors preferred both for children and adults.

Mr. Kaplan continues: "In May and June, at Carrefour, Tesco, and Wal-Mart stores in China we intend to bring out DIET versions of our very popular flavors, which include MALIBU-COLA, MALIBU SUNRISE ORANGE, MALIBU SURF'S UP LEMON LIME, MALIBU VERRY CHERRY COLA, MALIBU LEMON SQUEEZE (carbonated lemonade). MALIBU-COLA will launch several exciting new flavors including MALIBU GOLDEN APPLE and additional diet products including MALIBU DIET COLA, MALIBU DIET KIWI STRAWBERRY, MALIBU DIET WHITE GRAPE, MALIBU DIET SUNRISE ORANGE, MALIBU DIET SURF'S UP LEMON LIME, and MALIBU DIET LEMON SQUEEZE using Sucralose+Ace-K, as the HEALTHIER alternatives to regular carbonated soft drinks, which when enjoyed in moderation by healthy children and adults as part of a balanced diet in a lifestyle which includes regular exercise, are not in themselves harmful. The Chinese public has been asking us for these healthy alternatives and we will be good corporate citizens as well as a good marketeer and make a wide range of DIET MALIBU flavors readily available, first in the Beijing and Tianjin area and Hebei Province, and then widely throughout China through our national sales and distribution contracts with Tesco, Carrefour and Wal-Mart in China, as well as through the major Chinese supermarket and hypermarket chains."

CALCOL manufactures, markets and distributes through MALIBU-COLA a full range of carbonated soft drink products in 500 ml, 1.25 L, 2.0 L, and 2.5 L PET bottles and 355 ml aluminum cans, with national marketing and distribution contracts in China with TESCO (TSCO.L), CARREFOUR (CRERF) and WAL-MART (WMT) hypermarket stores and various Chinese supermarkets and distributors. MALIBU-COLA is produced in China under exclusive license from CALCOL INC. which owns and operates a modern 110,000 square foot state-of-the-art 13 million standard case bottling and canning plant and 800,000 unit concentrate plant on 10 acres of Beijing. A recent $1.5 million financing was completed in early April to provide more working capital to bolster marketing efforts to increase nationwide distribution of MALIBU-COLA products throughout China in more retail outlets beyond Beijing and Tianjin into the Shenyang, Dalian and Harbin Manchuria areas and Shanghai, Nanjing, Soochow and Hangkow Jiangsu areas with a great variety of exciting new products, flavors, and package sizes.

MALIBU-COLA products retail at a 20-25% discount to the other major American cola brands Coca-Cola (KO) and Pepsi-Cola (PEP) at TESCO and CARREFOUR and other major international and Chinese hypermarkets and supermarkets in China. MALIBU-COLA has a nationwide distribution contract and vendor number with Wal-Mart/Sam's Club stores in China and plans to roll out nationwide with Wal-Mart this Spring and Summer.

"At some of the Tesco's and Carrefour's we now have 1/3rd MALIBU-COLA products of the shelf space with Coke and Pepsi each with 1/3rd. Our American cola products market acceptance and high profile is rapidly rising throughout China; we are riding an ascending wave of popularity with all age groups and demographics in China. Our new marketing program and product launch for the Spring and summer high selling season is starting to really take off," commented Ji Jun, the Malibu-Cola Company President. Mr. Ji Jun added that "I am very excited that we can provide a HEALTHIER alternative for the Chinese kids as well as adults in the form of a full range of DIET flavors, with no sugar and more good taste for their enjoyment." Mr. Kaplan adds, "We are doing a mitzvah for the Chinese people!"

CALCOL INC. (Delaware) common stock (par value $.001) trades over the counter in the United States under the symbol "CLCL", involves a high degree of risk, and is a suitable investment only for accredited (high net worth) individuals, institutional investors, and overseas investors. This is not an offer to buy or sell securities. This announcement may contain certain "forward looking statements" and should not be relied upon in any investment decision.

For Further Information: Contact: Norman C. Kaplan, Chairman and President, Calcol Inc., Chairman, Malibu-Cola Beverage Co. Ltd.; Ji Jun, Vice President, Calcol Inc., President, Malibu-Cola; Xiao Jian Gong, Assistant VP, Calcol Inc., VP, Malibu-Cola. Beijing East Yanjiao Economic & Technical Development Zone, Beijing 101601 China. Tel: [phone]). Fax: [phone]. US tel: [phone]; US fax: [phone].