GLACEAU PRESS RELEASE
Contact: Donna Amato
Freeman Public Relations (212) 489-8585

BOLD, YOUNG COMPANY RE-ENERGIZES
THE BOTTLED WATER CATEGORY

In the spring of 1996, when plumbers shut off the water in his apartment building, Darius Bikoff found himself in alien territory – the bottled water section of his local supermarket.

Labels displayed verdant forests and pristine springs. But which brand should he buy? Bikoff’s successful career with a food and beverage packaging company, coupled with his thirst for both water and truth, led to a serious search – which ultimately led to the founding of Energy Brands, Inc.

Visiting springs from The Appalachians to the Bugaboos, he discovered that despite the enticing labels, spring water generally does not come from some pristine babbling brook in the mountains and has the same potential problems as tap water. As outbreaks of frightening bacteria made news in metropolitan areas, more and more people were buying bottled water. Yet bacterial and chemical contamination were showing up in even the most remote springs. Just because it bubbles up from the ground, he learned, there’s no guarantee that it’s pure.

Analyzing the current research, Bikoff discovered that the only drinking water that is truly pure, safe and assuredly healthy is vaporized distilled water. He realized that this information was likely to change the bottled water category dramatically. And he decided to become a dedicated producer of the best water to be found anywhere in the world.

Bikoff formed Energy Brands, Inc. in 1996. Teaming up with vice president of sales Frank Bombaci, a seasoned professional with over 20 years experience in the beverage and natural/specialty foods industry, Bikoff established the company in a modest office and sales facility in Whitestone, New York.

Sourcing from the glacial aquifers of Litchfield County, Connecticut under an arrangement with the oldest family-owned bottled water company in the U.S., Energy Brands instituted an extremely advanced vapor distillation process, which offers superior purity. The company then enhances the water with natural electrolytes – calcium, magnesium and potassium – to promote rapid hydration and help leach inorganic chemicals out of the body.

To distinguish their product from spring water, the company created the term "Smart Water" and bottled it in graphically appealing proprietary packaging under its trademarked brand name, Glaceau. Glaceau Smart Water has claimed its rightful place as having the lowest measurement of total dissolved solids (i.e. metals and minerals) of any water on the market. Since consumers buy bottled water for "what’s not in it," this has become a major selling point.

Targeting the natural foods, gourmet/specialty and direct-store-door beverage retail channels of distribution, Energy Brands quickly formed relationships with over 30 well established food and beverage distributors nationwide. Glaceau Smart Water is now featured in many of the nation’s most highly regarded retail outlets, including, for example, the two national giants of the natural foods world, Whole Foods and Wild Oats, as well as over 150 Ralph’s stores in California, 60 Wegman’s stores in New York State, and 75 A&P stores in New Jersey alone, as well as Waldbaum’s, Super Fresh, Food Emporium, and D’Agostino, among others.

Starting with first year sales of 15,000 cases, Glaceau Smart Water, according to

the latest SPINS data, has increased its sales 500%, so far, in 1999. SPINS has now declared it number two in the premium non-carbonated bottled water category, right behind Evian. The product is currently sold in ½ liter, one liter, and 20 ounce sports bottles, a package category pioneered by the brand. With the addition of its newly developed 1.5 liter bottle this year, Energy Brands is projecting sales of approximately 200,000 cases of Glaceau Smart Water in 1999.

Advancing toward its goal of becoming the leading premium national bottled water brand in the natural food and gourmet/specialty areas, Energy Brands has added two major new product categories, for a total of 14 different products.

In an exciting introduction this year, the company has just announced a new line of non-carbonated flavored waters that contain no sugar, no calories, no sodium and nothing artifical. Called Glaceau Fruit Water, these subtle and refreshing drinks are the first products of their kind in the marketplace. They have received rave reviews from first-time tasters, who are astonished by their subtle flavor and refreshing qualities with none of the usual, sugary aftertaste of flavored waters. They are infused with natural fruit essences and currently come in four distinctive flavors: Watermelon, Lemon-Ginger, Peach-Ginseng and Cranberry-Mint.

A second product category, energy drinks, has been electrified by the introduction of Energy Brands’ Go-Go line. Differing from sports drinks (like Gatorade) which are designed simply to quench thirst, Go-Go is designed to provide a feeling of increased energy, alertness and well-being through a blend of natural vitamins, minerals and herbs. Seven distinct versions of these "functional action drinks" include many of the most popular herbs in the burgeoning natural products movement. They range from a passionfruit/grape flavored drink called Passion, which is naturally sexy thanks to the inclusion of ginseng and yohimbe, to orange/grapefruit flavored Kombat, which contains vitamin C, zinc and echinacea to promote immunity naturally. Bliss, the blackcurrent/aronia flavored drink relaxes you with kava kava and St. John’s Wort. Frenzy, the herbal/cherry cola flavored high energy drink provides ginseng and guarana. And Quench, the lemongrass/rosehips flavored Go-Go drink is a natural sports drink because it contains electrolytes and creatine.

Go-Go products come in European style 8.4 ounce trim-cans and are currently being introduced in specialty shops in New York and Los Angeles. Their distinctive Go-Go girl animated logo on the cover has already made fast friends among the new generation of young consumers who are spearheading the movement toward this exciting new beverage category.

In just over two years, Darius Bikoff’s vision has come to remarkably fruition. Starting with a total of 15,000 cases shipped in year one, Energy Brands now expects to ship over 1,000,000 cases by next year. Starting with a test market pilot facility, the company now has a dedicated bottling plant, which employs over 40 people. And Bikoff conservatively estimates retail sales of over $10 million for Energy Brand Products this year.

"We have a number of new exciting products ready to go, too," he said. "We’re in the fastest growing segment of the Bottled Water industry, namely water packaged in bottles of 1.5 liters or less and in the forefront of the burgeoning Energy Drink market. It’s an exciting place to be."