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American Water Star Inc. Updates Progress on Bottling Facilities.

LAS VEGAS -- American Water Star Inc. (AMEX: AMW), a publicly traded company located in Las Vegas, is pleased to announce that our three bottling facilities located in Jacksonville, Fla.; Magnolia, Miss.; and Phoenix have commenced operations this week.

These three facilities will have eight bottling lines in operation during the third quarter of 2004, which we expect will increase to 10 bottling lines in operation in the fourth quarter of 2004. We also currently expect to open a bottling facility in Honolulu in early 2005. The initial three bottling facilities have the ability to produce more than 4,300,000 cases (3,000 truckloads) of beverage monthly. We believe that our cost to produce our products will be less in our new production facilities than we experienced in the past. We believe this new production capacity will be sufficient to meet the demands for our products. We plan to continue to use some co-packing arrangements currently in place to supplement our production needs for certain geographic areas.

"We are very pleased this bottling capacity is now in-house. These plants dramatically reduce our reliance on outside co-packing sources and change our whole approach to the beverage business," stated Roger Mohlman, CEO of American Water Star Inc. "Demographically the bottling facilities can service a tremendous portion of the U.S. population."

About American Water Star Inc.

American Water Star Inc. ("AMW") is a publicly traded company and is engaged in the beverage bottling industry. Its product brands are both licensed and developed in-house, and bottled in strategic locations throughout the United States. AMW's beverage products are sold by the truckload, principally to distributors, who sell to retail stores, corner grocery stores, convenience stores, schools and other outlets.

At AMW, we believe our great-tasting, new zero sugar, zero calorie flavored water beverages have positioned us to capture a large share of the market for healthy flavored waters. Our products include: Hawaiian Tropic -- our latest product featuring a sugar-free, no carbonation, and caffeine-free, sodium-free tropical drink. Hawaiian Tropic flavors include Strawberry Kiwi, Kiwi-Lemon Lime, Orange Guava and Pineapple Pink Grapefruit. For the grade school age children we are introducing Geyser Sport -- our new non-sugared, zero calorie, zero carbohydrates, zero sodium, vitamin- and mineral-enriched, fruit-flavored beverage brand. Our other premium beverages include: Geyser Fruit Beverages -- our line of eight different fruit-flavored waters which have proven to be popular with consumers and Geyser Fruta -- our Latin line of seven different fruit-flavored beverages.

Statements herein express management's beliefs and expectations regarding future performance and are forward looking and involve risks and uncertainties, including, but not limited to, the ability to negotiate outstanding prior debts of acquired companies; properly identify acquisition partners; adequately perform due diligence; manage and integrate acquired businesses; raise working capital and secure other financing; respond to competition and rapidly changing technology; deal with market and stock price fluctuations; and other risks. These risks are and will be detailed, from time to time, in AMW's Securities and Exchange Commission filings, including Form 10-KSB for the year ended Dec. 31, 2003, and subsequent Forms 10-QSB and 8-K. Actual results may differ materially from management's expectations.
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Publication:Business Wire
Geographic Code:1USA
Date:Aug 24, 2004
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