CALCOL INC. (CLCL) MALIBU-COLA BEVERAGE Focus on Diet Pop in China: First U.S. Company to Sell Wide Range of Diet Products in C

CALCOL INC. (OTC:CLCL) (Delaware) which owns the
MALIBU-COLA BEVERAGE CO. LTD. in Beijing announced today that its
strategic plan is to focus its marketing efforts on DIET products in
China, particularly towards children and young adults.
   "CALCOL applauds the recent agreement struck in the United States
between industry giants Cadbury Schweppes PLC, Coca-Cola Co., PepsiCo
Inc. and the American Beverage Association, whereby those companies
will sell only diet sodas to high schools. Only water, unsweetened
juice and low-fat milk will be sold to elementary and middle schools,"
said CALCOL's Chairman and President Norman C. Kaplan. "We intend to
be the first U.S. company to follow this policy in China. Adult onset
Type II Diabetes and obesity as well as heart disease due to dietary
factors as well as heredity are a growing problem in China, both for
children and adults, and our company emphatically wants to be part of
the solution and not part of the problem. We will not only make
HEALTHIER alternatives in the form of a full range (6 flavors) of DIET
sodas immediately and widely available, and we intend to initiate a
health education campaign in China by the distribution, with our DIET
PRODUCTS, of brief printed brochures in Chinese in consultation with
leading dieticians and physicians in order to help educate the Chinese
public (especially schoolchildren) on the benefits of a lifestyle
which includes balanced diet of proteins, fruits and vegetables and
milk products and juices, as well as regular exercise, with carbonated
soft drinks consumed moderately and HEALTHIER alternatives in the form
of DIET flavors preferred both for children and adults.
   Mr. Kaplan continues: "In May and June, at Carrefour, Tesco, and
Wal-Mart stores in China we intend to bring out DIET versions of our
very popular flavors, which include MALIBU-COLA, MALIBU SUNRISE
ORANGE, MALIBU SURF'S UP LEMON LIME, MALIBU VERRY CHERRY COLA, MALIBU
LEMON SQUEEZE (carbonated lemonade). MALIBU-COLA will launch several
exciting new flavors including MALIBU GOLDEN APPLE and additional diet
products including MALIBU DIET COLA, MALIBU DIET KIWI STRAWBERRY,
MALIBU DIET WHITE GRAPE, MALIBU DIET SUNRISE ORANGE, MALIBU DIET
SURF'S UP LEMON LIME, and MALIBU DIET LEMON SQUEEZE using
Sucralose+Ace-K, as the HEALTHIER alternatives to regular carbonated
soft drinks, which when enjoyed in moderation by healthy children and
adults as part of a balanced diet in a lifestyle which includes
regular exercise, are not in themselves harmful. The Chinese public
has been asking us for these healthy alternatives and we will be good
corporate citizens as well as a good marketeer and make a wide range
of DIET MALIBU flavors readily available, first in the Beijing and
Tianjin area and Hebei Province, and then widely throughout China
through our national sales and distribution contracts with Tesco,
Carrefour and Wal-Mart in China, as well as through the major Chinese
supermarket and hypermarket chains."
   CALCOL manufactures, markets and distributes through MALIBU-COLA a
full range of carbonated soft drink products in 500 ml, 1.25 L, 2.0 L,
and 2.5 L PET bottles and 355 ml aluminum cans, with national
marketing and distribution contracts in China with TESCO (TSCO.L),
CARREFOUR (CRERF) and WAL-MART (WMT) hypermarket stores and various
Chinese supermarkets and distributors. MALIBU-COLA is produced in
China under exclusive license from CALCOL INC. which owns and operates
a modern 110,000 square foot state-of-the-art 13 million standard case
bottling and canning plant and 800,000 unit concentrate plant on 10
acres of Beijing. A recent $1.5 million financing was completed in
early April to provide more working capital to bolster marketing
efforts to increase nationwide distribution of MALIBU-COLA products
throughout China in more retail outlets beyond Beijing and Tianjin
into the Shenyang, Dalian and Harbin Manchuria areas and Shanghai,
Nanjing, Soochow and Hangkow Jiangsu areas with a great variety of
exciting new products, flavors, and package sizes.
   MALIBU-COLA products retail at a 20-25% discount to the other
major American cola brands Coca-Cola (KO) and Pepsi-Cola (PEP) at
TESCO and CARREFOUR and other major international and Chinese
hypermarkets and supermarkets in China. MALIBU-COLA has a nationwide
distribution contract and vendor number with Wal-Mart/Sam's Club
stores in China and plans to roll out nationwide with Wal-Mart this
Spring and Summer.
   "At some of the Tesco's and Carrefour's we now have 1/3rd
MALIBU-COLA products of the shelf space with Coke and Pepsi each with
1/3rd. Our American cola products market acceptance and high profile
is rapidly rising throughout China; we are riding an ascending wave of
popularity with all age groups and demographics in China. Our new
marketing program and product launch for the Spring and summer high
selling season is starting to really take off," commented Ji Jun, the
Malibu-Cola Company President. Mr. Ji Jun added that "I am very
excited that we can provide a HEALTHIER alternative for the Chinese
kids as well as adults in the form of a full range of DIET flavors,
with no sugar and more good taste for their enjoyment." Mr. Kaplan
adds, "We are doing a mitzvah for the Chinese people!"
   CALCOL INC. (Delaware) common stock (par value $.001) trades over
the counter in the United States under the symbol "CLCL", involves a
high degree of risk, and is a suitable investment only for accredited
(high net worth) individuals, institutional investors, and overseas
investors. This is not an offer to buy or sell securities. This
announcement may contain certain "forward looking statements" and
should not be relied upon in any investment decision.
   For Further Information: Contact: Norman C. Kaplan, Chairman and
President, Calcol Inc., Chairman, Malibu-Cola Beverage Co. Ltd.; Ji
Jun, Vice President, Calcol Inc., President, Malibu-Cola; Xiao Jian
Gong, Assistant VP, Calcol Inc., VP, Malibu-Cola. Beijing East Yanjiao
Economic & Technical Development Zone, Beijing 101601 China. Tel:
(86-10-6159-4104). Fax: [phone]. US tel: [phone]; US
fax: [phone].