BEVsystems Outsources All Bottling Operations, Cuts Costs 55%

May 13, 2003

BEVsystems International Inc. announced today that its newest Life O2 water "co-packer" is now in full production and has begun shipping to customers. All of Life O2 production is now outsourced with co-packers.

The co-packer operating the Clearwater, Fla., bottling plant will produce SuperOxygenated Life O2 for the South-eastern U.S., Caribbean and Central America.

G. Robert Tatum, the company's chief executive officer hailed these events as "significant progress towards moving the company forward under its previously announced restructuring plans. Outsourcing manufacturing not only improves our gross profit margin by lowering manufacturing costs, it also improves cash flow because we no longer need to purchase materials in advance of production.

"Plastic bottles, for instance, are the single most expensive component in the finished product. We no longer need to maintain a large inventory of empty bottles. This becomes the responsibility of the co-packer." Tatum went on to say that "the reduction in the cost of goods sold will position BEVsystems to be a real competitor in the premium bottled water category. Most of the major players in the bottled water industry outsource their production with co-packers."

The latest co-packer has begun shipping to Life O2 distributors in the South East for customers including Walgreen Drugs, Whole Foods and Wild Oats natural food stores. BEVsystems also shipped a pallet of Life O2 last week to the Washington Wizards NBA basketball team.

Miami-based BEVsystems International Inc. is active in the premium beverage industry. With sales in 22 countries, the success of its flagship Life 02 SuperOxygenated Water brand, infused with up to 1,500 percent more oxygen via patented process and technology innovations, underscores BEVsystems' commitment to research and technology.

Source:

BEVsystems International Inc.

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