Arrowhead Water Products Ltd.

Arrowhead Water Products Ltd.

March 03, 2005 11:33 ET

Arrowhead Water Announces Positive Quarterly Financial Results


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ARROWHEAD WATER PRODUCTS LTD.

TSX VENTURE SYMBOL: AWP.A

MARCH 3, 2005 - 11:33 ET

Arrowhead Water Announces Positive Quarterly Financial
Results

CALGARY, ALBERTA--(CCNMatthews - March 3, 2005) - Arrowhead Water
Products Ltd. (TSX VENTURE:AWP.A) ("Arrowhead" or the "Company") is
pleased to report the financial results for its first quarter ending
December 31, 2004.



Financial Highlights Three Months Ended December 31
2004 2003
--------------------------------
Sales $ 1,795,415 $ 1,364,548
Cost of sales 1,010,280 722,741
--------------------------------
Gross profit 785,135 641,807
--------------------------------
Expenses 750,483 545,561
--------------------------------
Income before income taxes 34,652 96,246
Future income taxes 22,902 35,370
--------------------------------
Net earnings $ 11,750 $ 60,876
--------------------------------
--------------------------------


"Our solid and continued increase in sales and gross margin reflects our
increased penetration in the marketplace" said CEO Peter Jurisic. "In
addition, the acquisition of a major new customer in the grocery channel
in Western Canada will significantly increase our ability to realize
additional revenues from this fast growing category", he added. "By
expanding our distribution through the retail sector, customers will
soon be able to buy our products at virtually any grocery store at their
convenience. By the end of Arrowhead's third quarter, the western
Canadian consumer will be able to buy our products almost anywhere in
western Canada. Our initiatives combined with improved operating
facilities in Calgary and Edmonton have us well positioned for
profitable growth well into the future".

Jurisic also noted: "The re-modeling and growth of the Company in the
past year was done at a cost that is reflected in our net income.
Arrowhead also experienced a number of significant one time expenditures
in the past year. These included increased operating expenses for
production and distribution resulting from the addition of a major
customer while still operating out of our previous facility in Calgary.
Moreover, the transition from the previous facility to the new one was
encumbered by regulatory issues. As such, the Company encountered
increased costs associated with the transition. These costs impacted our
net income in the first quarter. As well, the costs associated with
upgrading virtually all aspects of the operations of the Company have
impacted the net income for the reported fiscal period. However,
improvements in our ability to provide quality products in a timely
fashion to our customers will bear positive results in the coming year."

Jurisic also noted that having secured distribution through most of the
major grocery chains in Western Canada, Arrowhead will now have complete
distribution capabilities from British Columbia to northwestern Ontario.
Accordingly, he noted that Arrowhead will see its revenues grow
substantially again in the current fiscal year and the operating
efficiencies resulting from increased production will fall to the bottom
line.

About Arrowhead

Arrowhead 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 through three distinct channels.
Those channels include the Canadian retail market and homes and offices
in Alberta. Arrowhead produces, bottles and sells reverse osmosis,
distilled and natural spring water as well as dispensing water coolers.

Issued and Outstanding Class A Common Shares: 26,104,368

ADVISORY: Certain information regarding Arrowhead Water Products Ltd.
including management's assessment of future plans and operations, may
constitute forward-looking statements under applicable securities laws
and necessarily involve risks associated with production, marketing and
transportation such as loss of market, volatility of prices, currency
fluctuations, environment risks, competition from other producers and
ability to assess sufficient capital from internal and external source.
As a consequence, actual results may differ materially from those
anticipated in the forward-looking statements.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Arrowhead Water Products Ltd.
    Peter Jurisic, Chief Executive Officer
    5730 Burbank Road S.E., Calgary, Alberta T2H 1Z4
    (403) 243-8033
    (403) 234-1485 (FAX)
    Email: pjurisic@arrowheadwater.ca
    or
    Arrowhead Water Products Ltd.
    Dan DeMaere, President and C.F.O.
    9627 - 63rd Avenue, Edmonton, Alberta T6E 0G2
    (780) 486-2467
    (780) 486-2878 (FAX)
    Email: ddemaere@telus.net
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.