Thomas Gillespie, president and chief executive officer of Aqua Vie Beverage Corporation (OTC Bulletin Board: AVBC), announced today that the company has reached an agreement which establishes the first in a network of distributors for the state of California and provides for the establishment of an Aqua Vie office in the San Francisco Bay Area. According to the terms of the agreement, product will ship immediately for retail sale of Aqua Vie Hydrators(TM) throughout northern California, representing the company's first strategic advance into North America's thirstiest water market.

In addition to regular grocery and refrigerator case displays, Aqua Vie is rolling out this week initially in both New York and California a variety of point-of-purchase displays, including attractive cold barrel displays so popular among delicatessens, convenience stores and the numerous food and fuel stops that dot the California highway system.

According to Gillespie, Aqua Vie's arrival on the California retail scene is being met with a great deal of enthusiasm. "The timing is right, and it is clear the water beverage category is destined to dwarf the bottled water category," said Gillespie.

Aqua Vie Beverage Corporation develops and markets all natural, lightly flavored, still (non-carbonated) bottled spring water. The company's low-calorie alternative beverages are bacteria-free and contain no preservatives. Aqua Vie produces and markets the Hydrator(TM) line of beverages in the United States and Europe. This beverage line, comprised of seven low-calorie, all-natural beverages that are lightly flavored and packaged in half-liter bottles, is designed to increase one's personal consumption of water, naturally. The underlying technology also serves as the new delivery system for Aqua Vie's nutritionally fortified E Line(TM) -- Elixir(TM), Empower(TM), and Ecstasy(TM); its nutritionally specific line of Aquaceuticals(TM); and Aqua Vie's nonalcoholic wine and champagne beverages made from spring water. For further information about Aqua Vie Beverage Corporation, visit the company's web site at www.aquavie.com.

NOTE: Statements contained in this release that are not strictly historical are forward-looking within the meaning of the safe harbor clause of the Private Securities Litigation Reform Act of 1995. These statements are made based upon information available to the company at the time, and the company assumes no responsibility to update such forward-looking statements. Editors and investors are cautioned that such forward-looking statements invoke risk and uncertainties that may cause the company's actual results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to, demand for the company's product both domestically and abroad, the company's ability to continue to develop its market, general economic conditions, and other factors that may be more fully described in the company's literature and any periodic filings with the Securities and Exchange Commission.