SOURCE: Coastal Holdings, Inc.

April 16, 2007 10:20 ET

Coastal Holdings, Inc. Announces Aqua Gold International, Inc. Has Completed Two-Year Distribution Contract in Asia-Pacific Region

Company in Negotiations for New Five-Year Distribution Contract in Asia

HOUSTON, TX -- (MARKET WIRE) -- April 16, 2007 -- Coastal Holdings, Inc. (PINKSHEETS: COHG) today announced that Aqua Gold International, Inc. has completed a two-year distribution contract via the delivery of 5 million cases of its premium bottled water in the Asia-Pacific region.

For the past two years Aqua Gold has developed a solid and trustworthy relationship with its Chinese distributor, which has a well-established distribution network and is very familiar with the bottled water industry in China.

The Company has spent the last four days negotiating a second distribution agreement with its Asian-based partners and anticipates closing the contract this week. The contract involves the distribution of a significant number of cases over the next five years that will capitalize on the huge demand in the Asia-Pacific bottled water market. Management will inform its shareholders of the agreement's terms and conditions as soon as the final documents are completed.

As stated in the Market Overview provided by The Ministry of Agriculture and Agri-Food Canada, the lack of clean, potable water in China has created a desperate need to generate alternative water sources. The Overview also states: "Approximately two-thirds of Chinese cities face water supply shortages. Sixty percent of the rivers flowing through urban areas are polluted. These realities have created an enormous and growing demand for bottled water. Sales have increased, and will continue to increase to meet consumer demand. It is projected that China will be one if not the world's fastest growing markets over the next five years."

In addition, the 2008 Olympics in Beijing will create an even greater demand for bottled water. In Beijing Review, China's National English Weekly, the city has received negative publicity for its shortage of water resources and chronically water-short Beijing is said to seek out elaborate plans to accommodate an extra 2.5 million temporary residents and to guarantee their water supply.

About Aqua Gold International, Inc.

Aqua Gold International, Inc. ("Aqua Gold") is a Canadian Corporation involved in the marketing and distribution of premium natural spring water. Aqua Gold's proprietary brand of natural spring water called "AQUA GOLD" is produced in Canada and bottled on a Native Reserve by Iroquois Water Ltd., on the Mohawk Nation Territory of Akwesasne. The Company's mission is to attain a prominent position in the worldwide bottled water market and, in particular, become one of the best-selling brands of bottled water in the Asia-Pacific region.

For more information on Aqua Gold International, Inc. please contact Mr. Manuel Da Silva at (514) 886-9079 or visit the Corporate website at

For more information on Coastal Holdings, Inc. please contact Mr. Andrea Cortellazzi at (514) 288-9699.

Forward-Looking Statements

Please be advised that statements made herein, other than historical data, constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, potential volatility in the company's stock price, increased competition, customer acceptance of new products and services offered by the company, and uncertainty of future revenue and profitability and fluctuations in its quarterly operating results. Please also be advised that the company's stock is not currently registered with the Securities and Exchange Commission.

Contact Information

  • Aqua Gold International, Inc.
    Mr. Manuel Da Silva
    (514) 886-9079

    Coastal Holdings, Inc.
    Mr. Andrea Cortellazzi
    (514) 288-9699