Tropical Beverage Announces First Shipments to Southern California School Districts

SANTA ANA, Calif.–(BUSINESS WIRE)–Feb. 2, 2004–Tropical Beverage Inc. (Pink Sheets:TPBV), a manufacturer and distributor of value-added water-based beverages, today announced it has shipped an initial order of approximately 3,000 cases of its advanced electrolyte formula for distribution in the Southern California school districts. Tropical anticipates an initial production run of 15,000 cases per month for its line of advanced electrolyte formula and approximately 75,000 cases of water per month.

“We continue to increase revenues as we up production within our facilities and aggressively market our portfolio of quality beverages,” said Chris Lotito, Chief Financial Officer of Tropical Beverage. “We’re confident other school districts will follow the lead of Southern California once they sample our products and see our commitment to fulfilling their needs.”

Lotito said Tropical has received inquiries from other buyers concerning their advanced electrolyte formula as well. The company is currently following up with interested parties at this time.

Recently, the Company announced a distribution agreement with a major distributor in the Southern California region. This distributor services over 150 school districts currently and is anticipated to increase Tropical’s revenues by $5 million in 2004.

Tropical Beverage develops and distributes value-added water-based beverages. Their extensive product line includes flavored waters, vapor distilled waters, ultra pure purified waters, micro clustered waters and waters with additives (including oxygen, caffeine, electrolytes and other enhanced minerals and vitamins). In addition to development and production, the company is in the process of further developing distribution and marketing strategies to further launch its products nationwide. In addition, Tropical Beverage continues to seek acquisitions of related companies that will enhance their product development and to build a network of subsidiaries across the nation.