SOURCE: Coastal Holdings, Inc.

February 08, 2007 08:30 ET

Coastal Holdings, Inc. Provides Update on Reverse Merger With Aqua Gold International, Inc.

HOUSTON, TX -- (MARKET WIRE) -- February 8, 2007 -- Coastal Holdings, Inc. (PINKSHEETS: COHG) today announced that the reverse merger process with Aqua Gold International, Inc. is on schedule. Both parties anticipate that the definitive reverse merger agreement will be completed in short order.

As stated in the January 5 Press Release, after reviewing all of its strategic options, Coastal Holdings determined that a reverse merger with Aqua Gold International is the most effective way to enhance shareholder value. This decision was based on Aqua Gold's existing asset and revenue base; experienced management team and high-growth profile. Further pertinent information on Aqua Gold appears below.

Aqua Gold's natural spring water is already enjoyed by millions of consumers in the United States and Canada under the "Canadian Indian" brand. The bottled water is distributed to superstores such as Wal-Mart, grocery stores, convenience stores and gas stations. Aqua Gold's water is sodium free and has a very low fluoride content that meets the FDA, CBWA and IBWA standards. According to an independent study, Aqua Gold's natural spring water rated higher than Evian in terms of the recognized industry standards for taste quality.

Aqua Gold intends to capitalize on the growth in the Asia-Pacific bottled water market by distributing its premium brand of natural spring water in the region. The Asia-Pacific market is expected to generate $5.8 billion US in revenue by the end of 2010. Market consumption volumes are forecast to reach a total of 26.2 billion liters by the end of 2010, which equates to a Compound Annual Growth Rate of 6% for 2005-2010. Aqua Gold is confident that its premium brand and superior quality natural spring water will be embraced by the market and quickly establish itself as a leading and prominent brand.

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, the Mohawk Nation Territory of Akwesasne. Aqua Gold's manufacturer has been recognized by Wal-Mart, the Canadian Bottled Water Association (CBWA), the International Bottled Water Association (IBWA), and the National Sanitation Foundation as a superior quality producer. Aqua Gold selects its spring water sources according to internal standards. These standards are far more stringent than those set by the US Food and Drug Administration (FDA), the CBWA and the IBWA. 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 CEO and Chairman Manuel Da Silva at (514) 886-9079 or visit the Corporate website at

For more information on Coastal Holdings, Inc. please contact CEO 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.

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