Hansen Beverage Company Taps into Gen-X Market with Cutting-Edge Lost Energy Drink

CORONA, Calif. – (BUSINESS WIRE) – March 23, 2004 – Hansen Natural Corporation (Nasdaq:HANS) today announced that its wholly owned subsidiary, Hansen Beverage Company, long known for its high-quality, all-natural beverages, has formed a potent partnership with surf industry icon Lost International, Inc. ( www.lostenterprises.com). Hansen inked a deal to license the rights to develop, produce and distribute Lost(R) Energy(TM) — a new energy drink that has created a huge buzz with the hip, 15-25-year-old demographic.

Lost has a worldwide following for its surfboards, surf/skate apparel and accessories. The tone for Lost was set with the launch of its clothing line, beginning in 1992, followed by the release of surf videos in 1993 and later with the Lost logo on its new breed of surfboards.

“Hansen’s alliance with Lost was a strategic move that instantly put us on the radar of the skeptical, hard-to-reach, Gen-X beverage consumer,” Rodney C. Sacks, Hansen’s chairman and chief executive officer, said.

Lost(R) Energy(TM) Drink debuted, to rave reviews, at the Action Sports Retailers (ASR) and Surf Expo earlier this year, catching the attention of both retailers and consumers. In Southern California, the initial test market, Lost(R) Energy(TM) was an instant success. The company is now moving ahead with plans for a national rollout.

Mark Hall, Hansen’s senior vice president, who heads up the new Lost Beverage Company, explained: “We see tremendous opportunity to leverage the equity in the Lost brand. Hansen’s already has an extensive national distribution network into which we can plug the Lost(R) Energy(TM) brand.”

“From the very beginning, the Lost brand represented the attitude of people who didn’t follow the mainstream — didn’t fit into the typical groove,” purported Joel Cooper, CEO of Lost. “The strong identification with our brand has created a dedicated following. When Hansen’s proposed branding its new energy drink with the Lost persona, it seemed a great opportunity for both companies, one we could not turn down.”

“It was a way to get our name out to more people who might not be exposed to the Lost brand. Lost Energy has the same irreverent, tongue-in-cheek attitude as everything else we do,” said Matt Biolos, co-founder of Lost.

Said Mike Reola, the other co-founder, “Lost Energy seemed like a good idea to our friends and action sports accounts. It also presented a huge marketing opportunity for Lost in terms of brand awareness, Web site traffic and an ability to cross promote. So we went for it.”

Hansen’s was one of the original founders of the energy drink market in the U.S., with the introduction of their original Hansen’s Energy in 1997. Hansen’s momentum continued with the 2002 launch of the hugely successful Monster Energy(TM) — a 16-oz. energy drink nearly twice the size and packing nearly twice the punch. Consumer response has made Monster Energy(TM) one of the fastest growing energy drinks and a leader in the $1-billion U.S. energy drink market.

Lost Beverage Company is wholly owned by Hansen’s, a California-based brand with a reputation for delivering the highest quality beverages.

Hansen Natural Corporation markets and distributes Hansen’s(R) Natural Sodas, Signature Sodas, fruit juice and soy Smoothies, Energy drinks, Energade(R) energy sports drinks, E(2)0 Energy Water(R), functional drinks, Sparkling Lemonades and Orangeades, multi-vitamin juice drinks in aseptic packaging, Junior Juice(R) juice, iced teas, lemonades and juice cocktails, apple juice, cider and juice blends, as well as nutrition bars, Blue Sky(R)-brand carbonated beverages, Monster Energy(TM)-brand energy drinks and Lost(R) Energy(TM)-brand energy drinks. The company’s subsidiary, Hard e Beverage Co., markets and distributes Hard e malt beverages. Hansen’s can be found on the Web at www.hansens.com.

Certain statements made in this announcement may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding the expectations of management with respect to revenues and profitability. Management cautions that these statements are qualified by their terms or important factors, many of which are outside of the control of the company, that could cause actual results and events to differ materially from the statements made herein, including, but not limited to, the following: Changes in consumer preferences, changes in demand that are weather related, particularly in areas outside of California, competitive pricing pressures, changes in the price and/or availability of raw materials for the company’s products, the availability of production and/or suitable facilities, the marketing efforts of the distributors of the company’s products, most of which distribute products that are competitive with the products of the company, the introduction of new products, as well as unilateral decisions that may be made by grocery chain stores, specialty chain stores, club stores and other customers to discontinue carrying all or any of the company’s products that they are carrying at any time. Management further notes that the company’s plans and results may be affected by any change in the availability of the company’s credit facilities and the actions of its creditors.