American Water Star Inc. Completes Acquisition of American Distribution & Packaging Inc.

LAS VEGAS–(BUSINESS WIRE)–Jan. 13, 2003–American Water Star Inc. (OTCBB:AMWS) is pleased to announce that it has completed the acquisition of American Distribution & Packaging Inc. effective Dec. 24, 2002. American Distribution & Packaging Inc. was previously a privately held company.

The acquisition of American Distribution & Packaging Inc. has a total value of $2.6 million. The assets consist of equipment, finished goods, accounts receivable and cash. American Water Star Inc. has issued 5.2 million shares of common stock in exchange for 100 percent of American Distribution & Packaging Inc.

American Distribution & Packaging Inc. specializes in packaging and distribution of products focusing in warehousing, storage and specialized processing of non-bottling products such as American Water Star Inc.’s new line of beverage sold in mini-sip pouches under the brand name of Cal-Sun. The specialized mini-sip market requires alternative manufacturing and distribution coordination as compared to traditional bottling procedures. The company intends to continue the business operations conducted by American Distribution & Packaging Inc.

“We are very excited about the addition of American Distribution & Packaging Inc. to our company. This acquisition expands our distribution and packaging network on the West Coast,” stated Roger Mohlman, president and CEO of American Water Star Inc.