Icelandic Water Holdings Taps Additional Spring Site to Meet Growing Demand for Award Winning Icelandic Glacial

Ölfus, Iceland (April 9, 2008) – Icelandic Water Holdings
ehf, producer of the super-premium bottled water, Icelandic Glacial, announces
that it has successfully tapped the exceptionally pure and legendary Ölfus spring
from a new site at the Hlíðarendi escarpment, located in southwest Iceland. The
establishment of the Hlíðarendi capture structure, together with the opening of
the new bottling facility this summer, ensures that Icelandic Water Holdings
will be able to satisfy growing demand by delivering even more impeccably pure
Icelandic water to consumers and retailers worldwide in an environmentally
sustainable manner.

Demand for the first-ever bottled water with a
CarbonNeutral® certification for both its product and operations has increased
dramatically since Icelandic Water Holdings signed a master distribution
agreement with beverage giant Anheuser-Busch in July of last year. With the new
state of the art, naturally powered bottling facility set to be operational in
September, the tapping of this additional spring site is positioned perfectly
to meet the current and future demand for Icelandic Glacial without straining
the unlimited resource of the exceptionally pure water flowing from the spring.

The capture structure taps natural outflows from a
geological fault that has diverted some of the Ölfus spring flows to
Hlíðarendi, where it is bottled using geothermal and hydroelectric energy.
Accessing the Ölfus spring from the new site in Hlíðarendi will dramatically
increase Icelandic Water Holdings’ output, capturing more water at a faster and
more efficient rate, without negatively affecting the environment and the
balance of the spring.

Flows from the spring are naturally replenished by snow
meltwater and rainfall on the mountain catchment areas, meeting Icelandic Water
Holdings requirements for a sustainable source.

“As an Icelandic company, we pride ourselves on
setting a high environmental example,” said Jon Olafsson, Icelandic
Glacial chairman and co-founder. “By tapping the naturally replenished
spring at Hlíðarendi we are able to source our water in close proximity to our
new facility, increasing efficiency and production while staying true to our
environmental commitment.”

The establishment of the capture structure has been even
more successful than expected with measured flows in excess of 40 liters per
second, which, if constant would equate to more than 1000 million liters a
year, according to the water industry consultants from Zenith International who
have been entrusted to oversee all elements of the project including managing
the building, source and bottling line installation.

“We are in the process of confirming the exact water
flow as some decline is to be expected during the drier summer months,”
commented Duncan Finlayson, operations consulting director of Zenith
International. “From current indications, we feel confident that even on
pessimistic assumptions the flow will allow around 450 million liters a year to
be bottled, if not more. For the global bottled water market, this is a large
spring. It will significantly enhance output for Icelandic Water Holdings and
help satisfy demand from Icelandic Glacial customers worldwide.”

Iceland is a country known for its use of geothermal and
hydroelectric power, making it a world leader in regard to ‘green’ living. This
national commitment to the environment has played an integral part in Iceland
being listed as “The Best Country to Live In” according to the Human
Development Index (HDI), published annually by the United Nations. Icelandic
Water Holdings reinforces Iceland’s leading position by powering its facility
solely by these natural energy sources – producing Icelandic Glacial in an
environmentally friendly manner unmatched by other bottled water brands.

The pioneering environmental efforts of Icelandic Water
Holdings has spurred positive change within the industry as other brands move
to incorporate their own ‘green’ initiatives in order to help the environment
and make a difference.

“We are delighted that our environmental efforts
have resonated with other industry members and that an environmental shift is
taking place,” comments Olafsson. “The more companies that embrace
environmental practices the better – we are proof that you can increase
efficiency and production without sacrificing the environment.”

About Icelandic Glacial

Icelandic Glacial is the product of Icelandic Water
Holdings ehf, which was founded in April 2004 and is located in Ölfus, Iceland.
Icelandic Glacial is bottled at source from the legendary Ölfus Spring,
Iceland. The spring is a vast underground resource, formed over 4,500 years ago
and is shielded from pollution by an impenetrable barrier of lava rock. It is
continually replenished from mountains to the north and from which a series of
interlinked springs emerge both on land and at sea.

Icelandic Water Holdings controls the sole commercial
rights to bottle and sell water from the Ölfus Spring. The capacity of the
spring is recognized as one of the largest in the world. Its daily overflow
alone is approximately double the total quantity of bottled water consumed

Icelandic Glacial is the first imported bottled water to
be certified as a CarbonNeutral® product and operation, which means it has a
‘Net Zero’ Carbon Footprint. The Company benefits from Iceland’s natural green
energy sources, using only geothermal and hydroelectric power.

Thanks to the vast array of eco-friendly business
practices, unique bottle design and incredible purity, Icelandic Glacial has
received numerous award wins including the 2007 Global Sustainability Award
from Bottled Water World, Best Water of 2007 from BevNET and the Best Overall
Concept Award at the 2005 Bottled Water World Design Awards.

Icelandic Glacial is distributed in the United States by
Anheuser-Busch, which took a 20 percent ownership stake in the company in July

For more information on Icelandic Glacial, go to