American Water Star Inc. Continues Shipping Water for Katrina Victims

American Water Star Inc. (AMEX: AMW) is proud to inform
our valued shareholders that our contract from Lipsey Mountain Spring
Water Co., the sole provider of disaster relief water for FEMA
(www.femawaternetwork.com), has moved our initial ship date to
immediate due to the disastrous Hurricane Katrina. We started shipping
on Aug. 30 and will continue until our contract is fulfilled. Lipsey
has asked that AMW provide 100% of our water production capabilities
from all four plants located in Phoenix, Jacksonville, Magnolia and
Kentwood. Estimated production capabilities are 125 truckloads of
water per day, seven days per week.
   "We are very sad to hear about the devastation that has occurred
in the southeastern part of the United States. We are proud to be
selected to assist Lipsey on behalf of FEMA to provide safe drinking
water to the survivors of Hurricane Katrina," said Roger Mohlman, CEO
of AMW. "We are doing everything in our power to run 24 hours a day to
fulfill the need for safe drinking water."

   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, the actual
amount of annual sales of AMW water for disaster relief; the frequency
of presidentially declared emergencies; AMW's production capabilities;
changes in economic conditions; 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.