American Water Star Adds Distributor and Expands School District Customer Base

American Water Star Inc. (AMEX: AMW) is pleased to
announce that they have received the opening order bid for their
Geyser beverages in the Kansas City, Mo., School District. AMW
submitted their low-sugar beverage for bid and was selected by the
district as the flavored beverage for their student body. "They loved
the taste and the fact that the sugar content is significantly lower
than most flavored waters," said Richard Mesnick, V.P. of sales for
AMW. The Kansas City School District has 73 schools and has placed
their initial order, which is currently in production, through DeFeo
Produce. DeFeo is one of the largest purveyors of produce, beverages
and snacks to hotels, food chains and schools in the Kansas City area.
   AMW currently has been approved in a number of other districts
across the United States, such as Clark County Schools, Las Vegas, and
Broward and Dade counties in Florida. "We will continue to focus on
building our school distribution with the Geyser Fruit and Geyser
Sport beverage line," said Mesnick. "We are confident as we submit for
bid that other districts will also continue to come on board."

   About American Water Star Inc.

   American Water Star Inc. ("AMW") is a publicly traded company and
is engaged in the beverage bottling industry. Its product brands are
licensed and developed in-house, and bottled in strategic locations
throughout the United States. AMW's beverage products are sold by the
truckload, principally to distributors, who sell to retail stores,
corner grocery stores, convenience stores, schools and other outlets.
   At AMW, we believe our great-tasting, new zero-sugar, zero-calorie
flavored water beverages have positioned us to capture a large share
of the market for healthy flavored waters. Our product line consists
of four branded beverages: Geyser Sport; Geyser Fruit; Geyser Fruta;
and Hawaiian Tropic. Geyser Sport is a sugar-free, calorie-free,
carb-free fruit-flavored beverage fortified with vitamins and calcium,
offered in eight different fruit flavors. Geyser Fruit is a
non-carbonated water with a low sugar content, also offered in eight
different flavors. Geyser Fruta is targeted to the Hispanic market and
includes authentic Latin-flavored beverages. Our Hawaiian Tropic
products feature sugar-free, no carbohydrate, caffeine-free,
sodium-free tropical drinks offered in four flavors.

   Forward-Looking Statements

   This press release may contain statements that constitute
"forward-looking statements" as defined under U.S. federal securities
laws. Generally, the words "believe," "expect," "intend," "estimate,"
"anticipate," "establish," "project" and similar expressions identify
forward-looking statements, which generally are not historical in
nature. Forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from our historical experience and our present expectations or
projections. These risks include, but are not limited to, actual
amount of annual sales to the school districts; continuing and ongoing
order placement and whether or not such orders will be seasonal; AMW's
production and co-packing capabilities; changes in economic
conditions; actual distribution of the flavored beverages; our ability
to become an industry leader; changes in the non-alcoholic beverages
business environment, including actions of competitors and changes in
consumer preferences; our ability to capture market share; the
effectiveness of our advertising and marketing programs; fluctuations
in the cost and availability of raw materials or necessary services;
our ability to avoid production output disruptions; our ability to
achieve earnings goals; regulatory and legal changes; our ability to
penetrate developing and emerging markets; litigation uncertainties;
and other risks discussed in our filings with the SEC, including our
Annual Report on Form 10-KSB, Quarterly Reports on Form 10-QSB, and
Current Reports on Form 8-K, which reports are available from the SEC.
You should not place undue reliance on forward-looking statements,
which speak only as of the date they are made. We undertake no
obligation to publicly update or revise any forward-looking statements
to reflect current events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.