DFRC Enters Into Agreement to Acquire Impact Beverages Inc.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--Feb. 26, 2004

Diversified Financial Resources Corp. (DFRC), a holding company trading under the stock symbol OTCBB:DFRC, is pleased to announce that it has signed an agreement to acquire a controlling interest in "Impact Beverages Inc." (Impact) of Scottsdale, Ariz.

Pursuant to the terms of the agreement, DFRC anticipates receiving 72.25% or 722,500 shares of Impact's common stock in exchange for 20,000,000 shares of the common stock of DFRC. The closing is to take place on or before May 1, 2004.

Chapman, CEO of DFRC, commented, "Impact is exceptionally well positioned to take advantage of a significant number of opportunities in the beverage industry." Chapman further stated, "The fastest growing segment of the worldwide beverage industry is the category known as 'functional beverages,' which outpaced all other beverage categories in growth over the last three years. Functional beverages in the United States, and in particular functional waters, grew at a surprising 325% between 2001 and 2002."

Impact uses a proprietary patented manufacturing process to produce a family of "functional bottled waters" under the Impact label. All these products represent the most advanced beverage technology available today. "Consumers are turning to beverages and in particular bottled water for their perceived functional benefits, and away from beverages that are loaded with sugar, carbohydrates and calories. Impact products are unique in that they are the only products on the market that taste just like water, but are loaded with beneficial nutrients and natural supplements," explained Chapman.

Impact has developed 10 new functional water formulas that follow this new concept of taste-free supplemented water. All these formulas are patent pending and include the following:

Diet Enhancing Water

Joint Health Water

Immune System Booster Water

Coral Calcium Water

Digestive Health Water

Glucose Regulator Water

Eye Health Water

Brain Booster Water

Sport Recovery Water

Energy Water

The first four products were recently test marketed in the Arizona area with a major grocery retailer. The results of that limited test market were quite positive, and indicated a large market for these types of products.

DFRC is currently a holding company with operations in real estate. Investors are strongly encouraged not to make an investment which they cannot afford to lose. Furthermore, DFRC does not recommend that any shareholder take any action solely based upon the information provided above. DFRC strongly encourages the public to read the above information in conjunction with its Form 10KSB for Dec. 31, 2002, and 10QSB for Sept. 30, 2003. These disclosures can be viewed at www.sec.gov. DFRC's Web site can be viewed at www.dfrc.net. Impact's Web site can be viewed at www.impactwaterplus.com.

This press release may contain forward-looking statements that are based on a number of assumptions, including the successful completion of the necessary due diligence in a short period of time. Although DFRC believes these assumptions are reasonable, no assurance can be given that they will prove correct. These forward-looking statements involve a number of risks and uncertainties, including competitive market conditions, successful integration of acquisitions and the ability to secure sufficient financing. The actual results that DFRC may achieve could differ materially from any forward-looking statements due to such risks and uncertainties.