BOCA RATON, Fla. – June 15, 2003 – XStream Beverage Group Inc. (BB:OTC XSBG) today announced the closing of the acquisition of Finish Line Distributors of Bristol, Conn., a distributor of several leading beverage brands. The agreement was structured as an asset purchase. Further financial specifics of the deal were not disclosed. XStream’s proprietary, functional beverage, Yohimbe Energy Drink, is already sold in numerous South Florida retail outlets and is now distributed to similar retailers in Connecticut.
The acquisition is a continuation of XStream Beverage’s strategy to acquire small- to medium-sized distributors into which the company can place their own proprietary products. The deal comes several weeks after XStream purchased Universal Florida Beverage Distributors of Fort Lauderdale, in order to manage distribution in South Florida. The company believes the approach of acquiring distributors should enhance shareholder value and allow XStream to control the regional distribution of their beverages.
“Finish Line Distributors is a key addition to the beverage network that XStream is putting together in strategic markets across the U.S.,” said Ted Farnsworth, chairman and founder of XStream Beverage Group Inc. “XStream’s strategy to acquire leading distributors should allow us to control our distribution channel and be better positioned to secure shelf space. Moving into the New England market will provide more people with the opportunity to enjoy Yohimbe Energy Drink and other proprietary beverages that we will soon be making available.”
Finish Line Distributors is a premier distribution company that distributes beverage products such as Welch’s Grape Juice and the Arizona iced tea line in key Connecticut cities, including Bridgeport, Bristol, Hartford and Stamford. Key management at Finish Line will remain in place and continue to spearhead operations.
“XStream offers a very exciting opportunity with its beverage distribution network. With their acquisition of Finish Line Distributors, we look forward to being a part of this ground-floor opportunity,” said Joe Pignatella, former owner of Finish Line Distributors. “We are certain the New England market will enjoy the unique taste and appeal of XStream’s products – such as their flagship beverage Yohimbe Energy Drink.”
About XStream Beverage Group Inc.
Established in 2001, XStream Beverage Group Inc. believes it is positioned to become one of the leaders in the beverage industry. The company plans to continue acquiring small- to medium-sized beverage distributors and developing beverages under its own label. The company is a public entity trading on the OTC, ticker symbol XSBG.
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include fluctuations in costs, changes in consumer preferences and other items described in the Company’s Securities and Exchange Commission filings and the Company undertakes no obligation to update the forward-looking statements.
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Ryan L. Roth