Jerry A. Gordon, President and Chief Executive Officer announced today the decision of the Board of Directors of Glacier Water Services, Inc. (Amex: HOO) to close its Mexico operation.Mr. Gordon said, “As stated in earlier releases, management’s focus is on returning Glacier to profitability. Despite our best efforts, the financial model in Mexico City does not work at this time. Eliminating the losses we are incurring in this operation is a positive step in achieving our goal of improving financial performance and improving the return for our shareholders.”For the six-month period ending July 2, 2000, Glacier DeMexico had $246,000 in revenues and experienced a net loss $558,000. Due to the decision to discontinue the Mexico operation, Glacier will report significant non-recurring restructuring charges commencing in the third quarter ending October 1, 2000. It is anticipated that substantially all of the vending machines currently in Mexico will be returned to the United States for future deployment.With over 13,000 machines located primarily in the sunbelt and midwest areas of the United States, Glacier is the leading provider of high quality, low-priced drinking water dispensed to consumers through self-service vending machines located at supermarkets and other retail locations.Statements in this announcement that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements with respect to the financial condition and results of operations of the Company which involve risks and uncertainties which are detailed further in the filings of the Company with the Securities and Exchange Commission, including, but not limited to, the Company’s Annual Report on Form 10-K for the year ended January 2, 2000.

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