Switch Beverage Company Assets Scheduled For Sale In Bankruptcy Auction

On November 15, 2005, The Switch Beverage Company filed a voluntary petition under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of Virginia, Richmond Division.

In order to maximize the value to the chapter 11 estate and achieve the most efficient conversion of Switch Beverage’s assets to cash and create a source of funds for payment to creditors, Switch Beverage is seeking a buyer of essentially all of its assets through an auction to be held on January 23, 2006 pending approval by Bankruptcy Court.

Switch Beverage has entered into an Asset Purchase Agreement with Beverage Acquisition, LLC (“Buyer”) dated November 16, 2005, whereby Switch Beverage agreed to sell substantially all of its assets (“Assets”) to the Buyer for $785,000. The purchase agreement is subject to Bankruptcy Court approval and is also subject to higher and more favorable offers.

Switch Beverage is exposing the Assets to the market through the bidding procedures set forth in the Notice of Proposed Order Granting Motion for Approval of Bidding Procedures in Connection with Proposed Sale of Substantially All Assets.

Although the bidding procedures remains subject to approval by the Bankruptcy Court, Switch Beverage expects that the bidding procedures will be approved by the Bankruptcy Court before the end of December.

Subject to the bidding procedures, Switch Beverage and its creditors reserve the right, in their sole discretion, to (i) consider any and all factors in choosing a party or parties, if any, with whom to proceed in this process; (ii) reject any and all offers; and (iii) terminate discussions with any and all parties at any time.

In addition, Switch Beverage is considering making certain members of its staff available to prospective bidders on one or more occasions prior to the qualifying bid deadline as set forth in the bidding procedures.

Interested parties may contact Alexander M. Laughlin at 703.905.2827, alaughlin@wrf.com, or Rebecca L. Saitta at 703.905.2831, rsaitta@wrf.com.