Hawaiian Natural Water Signs Letter of Intent to Purchase Ali'i Water Bottling, Inc.; Purchase Establishes Position in Home & Office Delivery Market.

HONOLULU--(BUSINESS WIRE)--June 15, 1999--

Hawaiian Natural Water Company, Inc. (NASDAQ:HNWC)(NASDAQ:HNWCW) announced today the signing of an Agreement in Principle to acquire Ali'i Water Bottling, Inc., a privately held Hawaiian manufacturer and distributor of purified water.

Ali'i bottles and distributes purified water in 3 & 5-gallon bottles to the home and office market on the Big Island of Hawaii and 4 sizes of smaller package PET containers to major supermarkets and retail clients throughout the state of Hawaii.

"We are excited about this new partnership with Hawaiian Natural Water, a recognized market leader. Our complementary distribution methods and product lines provide an excellent opportunity to develop a stronger Hawaiian market presence," commented Dennis Harris, chief executive officer of Ali'i Water Bottling.

Marcus Bender, president of Hawaiian Natural Water, said, "With this purchase, we enter the home and office market as a full service provider of bottled water on the island of Hawaii. This acquisition immediately contributes to top line revenue growth and fits perfectly into our long term strategic plan for a statewide entrance into the home and office segment."

The acquisition of Ali'i by Hawaiian Natural Water is subject to the completion of a due diligence process by both parties, including customary closing conditions, approval of regulatory authorities and the respective boards of directors. Although the amounts were not disclosed, purchase of assets and any intellectual property rights will be made with HWNC common stock.

Hawaiian Natural Water Company bottles, markets, and distributes bottled water in the U.S., the Middle East, and Asia for the fastest growing segment of the bottled water industry, the retail premium (2 liters or less) PET market. Hawaiian Natural Water complies with FDA labeling requirements for "bottled at the source" and "natural artesian" water.

Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, possible changes in cost of materials, expense items, capital expenditures, capital structure, and other financial items; introduction of new products and possible acquisitions of assets or businesses; possible actions by customers, suppliers, competitors, regulatory authorities; and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.