SOURCE: Coastal Holdings, Inc.

April 18, 2007 10:06 ET

Coastal Holdings, Inc. Announces Aqua Gold International, Inc. Signs Distribution Contract With Beijing Partner for 15 Million Cases of Bottled Water

Company in Negotiations for Additional Distribution Contracts in Provinces of Machikou and Changping

HOUSTON, TX -- (MARKET WIRE) -- April 18, 2007 -- Coastal Holdings, Inc. (PINKSHEETS: COHG) today announced that Aqua Gold International, Inc. has signed a one-year distribution contract for the delivery of 15 million cases of its premium bottled water in Beijing, China. This represents Aqua Gold's largest order to date and constitutes only one part of the complete open and ongoing transaction. http://www.aquagoldinternational.com/asiancontract.html

The 15 million cases will be sold for a total value of $108.75 million CND. The Company anticipates realizing a net profit of approximately $25 million over the next 12 months.

Management stated: "We are overwhelmed by the scope of this order and we are immediately evaluating all measures to be taken to increase our production capabilities including: triple work shifts, sub-contracting and potential acquisitions. Furthermore, one 16-wheeler van container holds 2,000 cases (24 Bottles), which will require 7,500 containers to fulfill the order."

This unique opportunity, as we continue to negotiate orders for 2 other Chinese Provinces, is a result of our diligent efforts to establish a strong position in the Asian bottled water market; in particular 'capitalizing' on the lack of clean, potable water in China. 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.

Finally, Coastal Holdings' and Aqua Gold's management are pleased to announce that the considerations and power subrogation with respect to their financial merger agreement will be finalized within the next 10 days. The Company will keep its current and new shareholders informed on a timely basis of any further significant developments in the merger process.

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

For more information on Coastal Holdings, Inc. please call (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

  • Coastal Holdings, Inc.
    (514) 288-9699