Arrowhead Water Products Ltd.
TSX VENTURE : AWA

Arrowhead Water Products Ltd.

February 24, 2011 12:00 ET

Arrowhead Water Announces First Quarter Results and Increase in New 15 Litre Sales

CALGARY, ALBERTA--(Marketwire - Feb. 24, 2011) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR TO US PERSONS.

Arrowhead Water Products Ltd. ("Arrowhead" or the "Company") (TSX VENTURE:AWA) reports its unaudited consolidated financial and operating results for the first quarter ended December 31, 2010. For complete disclosure of Arrowhead's financial results and Management's Discussion and Analysis ("MD&A"), please go to www.SEDAR.com and view documents listed under Arrowhead Water Products Ltd. Highlights for the quarter include the following:

Sales from the 15 litre channel increased by 75% from $467,540 to $817,631.

Gross profit decreased by 27% from $390,702 to $282,304.

Cost of goods sold decreased from $862,524 to $859,098.

Total general and administrative expenses decreased by 2% or $10,014.

The Company continues to increase sales in its new innovative environmentally friendly one-way 15 litre bisphenol A free (BPA) large format water channel. The Company packages spring, drinking and pure distilled water in the new 15 litre bottle which is produced at its Edmonton plant. The Company's key market is to focus on grocery chains and big box stores located in Western Canada. Currently, the Company is operating one Siapi blow molding machine to produce the new 15 litre bottle in its Edmonton plant and the Company plans to move its second Siapi machine into a new high growth market in Western Canada.

About Arrowhead Water

Arrowhead Water is Canada's largest Canadian owned, publicly traded water company which is engaged in the production, sale and distribution of large format bottled drinking water (including the new one-way environmentally friendly bisphenol A free 15 litre PET bottle and traditional 18.9 litre (5 gallon) bottle). Arrowhead produces and delivers bottles of natural spring, reverse osmosis and pure distilled water to the Western Canadian retail and wholesale market. The Company remains committed to continually improve its level of service to its customers and to provide positive returns to its shareholders.

This news release may contain certain forward-looking statements, including management's assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with mining exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other explorers and producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Issued and Outstanding Shares: 14,492,230

READER ADVISORY Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Arrowhead Water Products Ltd.
    Donald W. Wood
    President and Chief Executive Officer
    (403) 692-8259
    (403) 243-1485 (FAX)
    dwood@arrowheadwater.ca
    or
    Arrowhead Water Products Ltd.
    5730 Burbank Road SE
    Calgary, Alberta T2H 1Z4
    or
    Arrowhead Water Products Ltd.
    Ross O. Drysdale
    Director
    (403) 585-3737
    (403) 262-2952 (FAX)
    drysdale@cllawyers.com
    or
    Arrowhead Water Products Ltd.
    1500, 407 - 2 Street SW
    Calgary, Alberta T2P 2Y3