Icelandic Glacial Closes New Equity Funding and Reports over 80% Increase in Q1 Sales for 2011

ÖLFUS, Iceland (May 24, 2011)— Icelandic Water Holdings ehf, makers of the award-winning, CarbonNeutral® natural spring water from Iceland, Icelandic Glacial, reported today that it had formally closed its 2010 funding round raising a total of $40 million in equity from new and existing investors. The funding consisted of the conversion of $28 million of existing loans
and the infusion of $12 million in new capital. As a result of the new funding and recapitalization, the company’s significant shareholder and U.S. distribution partner, Anheuser-Busch InBev has converted its debt and raised its ownership in the Company to 23.3%.

As a result of the equity issuance during 2010 and the increasing value attributed to the Company’s ownership of Iceland’s legendary Ölfus Spring, Icelandic Water Holdings’ net assets grew $42.4 million from $68.4 million at the end of 2009 to $110.8 million on December 31, 2010.

In addition, Icelandic Water Holdings reported an 86% year over year increase in global sales for the first quarter of 2011. This growth has largely been driven by increased consumer acceptance and increased availability, with significant new accounts such as the nationwide listing of Icelandic Glacial in US convenience retailer Circle K, as well as steady growth within existing landmark accounts such as Hilton Hotels and Walgreens. Icelandic Glacial also increased its global reach with new distribution through ID Foods in Canada, where sales have increased 330% year over year, a strong second year in Russia and the company’s first sales in China.

“Icelandic Glacial came of age in 2010, a time in which an ever growing number of people in the world are embracing high quality water that is pure, safe and environmentally responsible” remarked Jon Olafsson, Chairman and co-founder, Icelandic Glacial. “Growing our distribution in 2010 and into 2011 has given more people the opportunity to try our exceptional water from Iceland, and when given the choice, investors and consumers alike are choosing Icelandic Glacial.”

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Michele Angeloni

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