EUPHORIA WATER, CHARITY IN A BOTTLE

What is Euphoria Water Company? Since its founding in 2002 by socially conscious entrepreneurs, Euphoria Water has become the fastest growing new bottled water in the Western United States. The company is grounded in the principle of social responsibility and is committed to donating a minimum of 20 percent of its profits to charity. It is the only bottled water in the country to have exclusive co-branding rights with major national charities — specifically March of Dimes, City of Hope, Special Olympics and the Make-A-Wish Foundation.

@@googleHow is Euphoria Water Different than Other Water Companies?
Instead of simply making a donation for promotional value, Euphoria Water prominently displays its charity partners¡¦ mission statement and logo on every bottle label and makes a donation to each charity partner at an agreed upon percentage of every sale, with no limit on the total amount to be donated. Euphoria Water promotes its products as ¡§Charity In a Bottle.¡¨

What Is Euphoria¡¦s Marketing Approach?
In a market dominated by major brands, Euphoria Water is currently the fastest growing new bottled water in the Southwestern United States.

Euphoria Water¡¦s sales and marketing effort is a direct reflection of its overall grounding in social responsibility and philanthropy. Increasing sales directly translates to increasing the reach and frequency of each charity¡¦s message, as well as increased donations to charity.

This unique strategy has distinct advantages: (a) Euphoria Water products have immediate name recognition because 88 percent of all Americans recognize at least one of Euphoria¡¦s charity partners, (b) The charity partners¡¦ donor base totals over 13 million advocates, representing a formidable consumer audience; (c) The charity partners have existing marketing and promotional resources which allow for numerous co-op opportunities; and (d) consumers overwhelmingly prefer when a manufacturer of goods gives back to the community. In fact, according to a leading charity industry source, 81 percent of consumers will switch to a brand that has the same quality and price as their usual brand if there is a cause related activity involved.

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Because Euphoria is linked to its charity partners, the company has developed a number of broad reaching marketing strategies:

“« Public Service ¡V The relationship with charity partners allows Euphoria to participate in public service announcements (billboards, bus shelters, media spots) normally reserved for larger corporations with extensive marketing budgets.
“« Brand Recognition ¡V Co-branding with the charity partners brings immediate recognition.
“« Charity Events ¡V Over 2,000 events are held annually to promote the charity partners, creating heightened exposure for Euphoria.

Sponsorships ¡V Euphoria has been the exclusive water sponsor for a number of events including the Arizona Rock N¡¦ Roll Marathon with over 180,000 attendees.

How Is the Bottled Water Industry Growing?
For the past 20 years, bottled water has been the fastest growing segment of the beverage industry. According to studies prepared by the Beverage Marketing Corporation, a leading industry authority, total bottled water consumption in the United States has more than quadrupled from 1980 to 2002 to more than six billion gallons, representing some $11 billion in retail sales. Since its introduction to the Southwest retail market in 2002, Euphoria¡¦s annual sales have increased from 55,000 bottles in 2002 to a projected 20 million bottles by the end of 2004.

A number of trends are affecting the sales growth of bottled water overall, including health and fitness issues, consumer desire for caffeine-free and sodium-free beverages and contamination issues.

Where is Euphoria Water Sold?
Since its initial introduction in the Arizona market in 2002, Euphoria has expanded distribution into five additional states ¡V California, Nevada, New Mexico, Texas and Colorado. The brand has been selected by some of the largest and most well known distributors in the southwest including Mesa Distributing Company in San Diego, Sacramento and Santa Rosa, Mission Beverage in Los Angeles, Premium Distributing in San Diego and Pearce Beverage Company in Phoenix.

Euphoria Water can now be found on the shelves of thousands of grocery, pharmacies, convenience stores, bars and restaurants including Osco¡¦s, Albertsons, Save Mart Supermarkets, Bashas¡¦, ARCO AM/PM, 7-11, Valero, Quick Stop and many other others.

Euphoria is currently available in 500 mL (16.9 oz.) sold in 24, 12 and 6-packs; 700 mL Sport (24 oz.) sold in 24 and 6 packs; and 1 Liter, 1.5 Liter and Gallons sold in 4-packs.

Where Does Euphoria Fit Into the Bottled Water Category?
The company¡¦s products are priced in the ¡§middle¡¨ of the market competitive with Nestle, Sparkletts, Poland Springs and Crystal Geyser and slightly lower than Dasani and Aquafina.

Grocery and convenience store buyers appreciate the diversification which Euphoria offers to the ¡§mid-priced¡¨ water set and several have authorized Euphoria to replace other mid-priced waters altogether.

How Much has Euphoria Contributed to Its Charity Partners?
Since its inception through 2004, Euphoria will have contributed more than $250,000 to charity. The donations are based on an agreed upon percentage of sales which approximates $.20 per case on average, with no limit on the total amount to be donated. As Euphoria Water expands its distribution and sales, so too will it expand its donations to charity.

What are Euphoria¡¦s Growth Plans?
Euphoria¡¦s growth strategy is three-fold: increase distribution, leverage its charitable partnerships and seek greater production efficiencies.

The company expects to expand and to penetrate its first East Coast markets in 2004. As sales grow and the brand achieves more widespread recognition, the company plans to expand into other states.

Euphoria is also working with a number of packing facilities to increase production efficiencies that allow it to offer buyers and distributors maximum price/margin benefits.

Who Are the Key Member¡¦s of Euphoria¡¦s Management Team?
Bernard Werner, Chief Executive Officer and Director ¡V Mr. Werner is involved in the oversight and the direction of all facets of the Company. A certified public accountant (CPA), Mr. Werner is the founder and CEO of Strategic Development Partners, an investment and management firm based in Miami, Florida. In addition to his responsibilities at Euphoria, he serves as a managing member of GW Partners, LLC, which targets value-added investment opportunities He previously served as President of CEO of several banking institutions. Mr. Werner also serves on the board of various community and philanthropic organizations. He is a graduate of the University of Florida School of Business.

David Garfinkle, Chairman ¡V With more than 25 years experience, Mr. Garfinkle is a respected real estate and investment manager with a positive reputation in the southern Florida real estate community as a turnaround specialist.

In addition to his responsibilities at Euphoria, he serves as a managing member of GW Partners, LLC, which targets value-added investment opportunities. Mr. Garfinkle also is a partner in Investment Equities Associates, an organization that he joined in 1984 that has a portfolio of development land, luxury homes, vacation home sites and office buildings.

He has been recognized by both NAIOP and BOMA for the quality of his renovation and management. Mr. Garfinkle is currently the Regional Chairman of the Florida Region of the Anti-Defamation League and is a member of the Board of Directors of numerous local and national community organizations. He is a graduate of Syracuse University.

Zalman Lipskar, VP Development and Director ¡V One of the co-founders of Euphoria, Mr. Lipskar is responsible for managing the company¡¦s production, product development, distribution, logistics and charity relationships. A marketing and advertising executive, Mr. Lipskar previously worked with On Box Media and Gold Coast Advertising, developing marketing programs for a variety of clients. He holds a bachelor¡¦s degree in rabbinical studies from the Rabbinical College of Montreal and has studied in South Africa and England.

Dovy Ainsworth, VP Marketing and Director ¡V A co-founder of Euphoria, Mr. Ainsworth is responsible for managing the company¡¦s distribution network, retailer relations, product demonstration, merchandising and marketing. He previously worked with Gold Coast Advertising and On Box Media. He holds a bachelors degree in Rabbinical Studies from the Rabbinical College of France.

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