Universal Beverages Holdings Corporation announces that its wholly-owned subsidiary, Universal Beverages, Inc., has begun production at its Leesburg Operations Center of private label bottled spring water for the first of three major customers.

Universal will be responsible for supplying the bottled spring water for the mass merchandising division of one of the largest retail chains in North America. The agreement covers the customer's Southeast Region, including Florida, Georgia, Alabama, North and South Carolina and the first shipments of the special 32 pack one half-liter size will commence in July.

The contract is expected to add from $7 to $14 million in annual revenues for Universal Beverages, which will be reflected in the third quarter of the current year. This contract is for three years and may lead to volume orders as Universal expands and acquires production capability in adjacent regions. The new business for Universal Beverages, Inc. follows significant enhancements made to the Leesburg, Florida operations center with multi-pack capability and new production capacity. The new multi-pack equipment will be operational in July and the production lines are already at capacity with new business.

In addition to providing contract manufacturing for private label brands, Universal owns and distributes the Syfo® brand of beverages. Syfo Beverages are distributed throughout the Southeastern United States and the Caribbean, and can be found in major supermarket chains. Syfo sales are particularly strong in Florida, where Universal Beverages Holdings Corporation has its corporate headquarters in Jacksonville and production facilities in Leesburg. The full Syfo product line includes 100% Purified Water, Original Seltzer and Naturally-Flavored Sparkling Waters.

Universal Beverages, Inc. is a wholly-owned subsidiary of Universal Beverages Holdings Corporation.

Note: This press release may contain forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, regarding Universal Beverages Holdings Corporation. Actual events or results may differ from the Company's expectations, which are subject to a number of known and unknown risks and uncertainties including but not limited to intense competition with substantially larger companies, general economic conditions and consumer spending patterns, tourism levels in Florida and the availability of timely financing for expansion plans. Other risk factors listed in the Company SEC filings may also affect the actual results achieved by the Company.