American Water Star to Lease Option a Plant near New Orleans and Receives Re-Orders for Its Flavored Beverages

American Water Star Inc. (AMEX: AMW) would like to
inform our shareholders that prior to Hurricane Katrina we were in
negotiations to enter into a lease with an option to purchase a plant
located in Kentwood, La. Kentwood is located approximately 85 miles
northwest of New Orleans. The plant is 75,000 square feet on 6 1/2
acres with a natural spring. The plant has been producing 3- and
5-gallon bottles of water for home and office delivery. Two other
lines are set up to run 1- and 1 1/2-liter PET production. Estimated
capability is 35 trucks a day (approximately 1.2 million bottles).
   "When I was negotiating to acquire this facility I had no idea
just how crucial this plant would be logistically to handle our
current contracts. We currently are installing two backup generators
to make the plant additionally functional. This will allow us to get
water quicker to the Lipsey/FEMA locations and will also save on
freight costs for Lipsey/FEMA," said Roger Mohlman, CEO of AMW. "In
addition, this plant provides another important location to run our
other brands for retail and school delivery."
   In addition to the constant production for Lipsey/FEMA, we are
continuing to deliver flavored beverages to retailers and school
districts nationally. "The amount of re-orders for Geyser Fruit is
constantly growing," said Mohlman. We have also received additional
re-orders from our newest customer, DeFeo, one of the larger purveyors
of beverages to hotels, food chains and schools in the region. DeFeo,
located in Kansas City, currently maintains contracts with the Kansas
City school district for our flavored Geyser beverages and has added
our sugar-free, calorie-free mixers under the brand Fling's Kansas
City Mixers for their hotel and retail customers.

   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 and Geyser
Fruta. 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.

   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, a final
lease option agreement being reached with landlord of the Kentwood
plant; AMW's production capabilities; acquiring qualified personnel to
run the Kentwood plant; changes in economic conditions; changes in the
nonalcoholic 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.