(All Currency Amounts in US$)

Sparkling Spring Water Group Limited announced today that it expects to report record revenue and net customer growth in its third quarter ending September 30. The Company also expects positive income for the quarter as declines in interest expense due to its currency hedge have more than offset shortfalls in EBITDA caused by the weak Pound, high fuel prices and increased sales expenses resulting from the increased customer growth.

Excluding business acquisitions, the Company added over 8,500 net new customer locations in the quarter. Including acquisitions, approximately 13,000 customer locations were added, increasing the total customer location base to over 184,000 up from 158,000 at the end of the year ago quarter. Revenue is expected to be up approximately 10% over the year ago quarter. Although the Company expects EBITDA in the third quarter to be about equal to that achieved in the prior year, the negative impact on EBITDA from increased distribution and selling costs, and steep decline in the Pound was more than offset by significantly lower interest expense and should result in positive income for the quarter.

"I am especially encouraged by our return to strong net rental customer growth in the third quarter. The incremental volume from our increased customer base should help improve our operating performance next year," said Mr. Stewart E. Allen, President.

The Company also announced that in September it had exchanged its Pound Swap for a similar sized Canadian Dollar Swap realizing over $4 million in gross proceeds that it has used to reduce borrowings on its bank operating line.

Sparkling Spring is a leading producer and distributor of bottled water to the home and office segment. The Company does business as "Nature Springs" in England, "Water at Work" in Scotland, "Sparkling Springs" in the Atlantic Provinces of Canada, "Canadian Springs" in British Columbia, Canada, "Cool Spring," "Sparta" and "Rocky Mountain Springs" in Alberta, Canada and in the United States, "Cullyspring" and "Crystal Springs" in Washington and "Crystal Springs" in Oregon.

The statements contained in this release that are not historical facts are forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in such statements. The results could be affected by, among other things, general business conditions, the impact of competition, weather, the seasonality of the Company's business, the ability to obtain financing, interruption in the availability of water from the Company's water sources or fuel to required to deliver the Company's products, government regulations, labor relations and currency fluctuations. Investors also should consider other risks and uncertainties described in further detail in documents filed by the Company with the Securities and Exchange Commission.