East Coast Beverage Corporation (OTC Bulletin Board: ECBV) today reported record sales of $3.3 million and $5.6 million for the quarter and six-month periods ended June 30, 2000. The quarter's sales represented a gain of more than 200 percent over the comparable year-earlier period, due to a rapid increase in shipments of the Company's iced-coffee products. The Company reported a loss for the quarter of $2.0 million, or $0.24 loss per share, versus a loss of $0.7 million, or $0.21 loss per share in the comparable quarter of 1999. For the six months, the loss was $3.3 million, or $0.44 loss per share. The increased loss was attributed in large part to the cost of launching the product nationally, paying slotting fees, and other launch expenses. The Company is now recording revenue from 48 of the 50 states.

East Coast Beverage CEO John Calebrese commented, "With our iced-coffee brand being sold throughout the 48 contiguous states, we are seeing only the beginning of a growing wave of enthusiasm for Coffee House USA(TM) products. As the cost of promotion comes more in line with fast-growing revenues, we believe we will be able to cross over from losses to profitability within the next couple of quarters."

Calebrese said that individual flavor preferences seem to vary regionally, with Banana's Foster being most popular on the West Coast and Hazelnut a predominant seller in New York. "The German Chocolate and Mocha flavors are favorites across the board," he said. "We believe that Coffee House USA products will provide increasingly strong competition for the industry leaders." He said that the Company intends to introduce a full line of diet products before the end of the year.

East Coast Beverage CFO Bruce Schames said that Gross Profit Margins increased to 31.7 percent in the quarter, up from 25.9 percent in the year-earlier period. He said that the improvement was a product of better purchasing, more volume efficiency, and improved systems. The company is currently pursuing a variety of options with regard to increasing its working capital to support the accelerating demand for Coffee House USA products. "We expect to be able to announce that we have secured additional financing shortly," Schames said.

About East Coast Beverage

East Coast Beverage Corporation develops, produces and distributes Coffee House USA, a proprietary line of all-natural, ready-to-drink bottled iced coffee drinks. Currently, the Company produces eight flavors that include Coffee, Hazelnut, Mocha, German Chocolate, Cinnamon, Vanilla Mousse, Toasted Almond, and Banana's Foster. For more information visit www.coffeehouseusa.com.

Any statements in this release that are not statements or descriptions of historical facts may be "forward-looking statements" as that term is defined under the Federal securities laws. Forward-looking statements are subject to risks, uncertainties and other factors, including, but not limited to, those described in the Company's filings with the Securities and Exchange Commission.


EAST COAST BEVERAGE CORP.
Condensed Statements of Operations For the Three and Six Months
Ended June 30, 2000 and 1999


Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
(Unaudited) (Unaudited)


Sales $3,291,073 $1,061,286 $5,551,267 $2,915,795

Cost of Goods Sold $2,246,519 $786,799 $3,841,655 $2,101,765

Gross Profit $1,044,554 $274,487 $1,709,612 $814,030

SGA Expenses $3,064,230 $852,215 $4,960,606 $2,237,742

Net Loss $2,039,922 $681,898 $3,314,464 $1,566,111

Weighted
average shares
of common
stock outstanding 8,522,912 3,271,455 7,484,500 5,908,182

Net Loss
per share basic
and diluted $0.24 $0.21 $0.44 $0.27