Glacier Water Announces Second Quarter and YTD Results

Business Wire, August 5, 2008

VISTA, Calif. -- Glacier Water Services, Inc. (Pink Sheets: GWSV) announced results for the quarter and six-month period ended June 29, 2008.

Brian McInerney, Chief Executive Officer of Glacier Water, said, "Total revenues for the second quarter and the six-month period were up 4.2% and 2.8%, respectively, versus the same periods last year. Same store revenue growth for the six-month period was 7.6%. Income from operations for the second quarter increased slightly to $1,212,000, and was impacted by higher operating costs to support new location growth and increased fuel costs. Glacier has approximately 16,600 machines at retailers across the U.S. and Canada providing high quality, great tasting drinking water."

Revenues for the quarter ended June 29, 2008 increased 4.2% to $23,832,000 compared to $22,870,000 for the same quarter a year ago. For the six-month period ended June 29, 2008, revenues increased 2.8% to $44,711,000 compared to $43,508,000 for the same period a year ago. The increases in revenue for the quarter and the six-month periods were primarily the result of growth in the number of locations this year (plus 500 machines) compared to the same periods last year, coupled with an increase in average volume per machine.

The Company's income from operations for the quarter ended June 29, 2008 was $1,212,000 compared to $1,172,000 for the same period last year. For the six-month period ended June 29, 2008, income from operations was $967,000 compared to $1,299,000 for the same period last year. Income from operations in the three- and six-month periods were negatively impacted by higher operating costs, including labor and machine maintenance associated with new location growth, and fuel costs. Fuel costs for the first six months of 2008 increased $140,000 as compared to the same period last year. Additionally, income from operations for the first six months of 2008 included non-cash compensation expense of $160,000 as compared to $136,000 for the first six months of 2007.

The Company's net loss applicable to common stockholders for the quarter ended June 29, 2008 was $922,000, or $0.34 per basic and diluted share, compared to a loss of $1,102,000, or $0.42 per basic and diluted share, for the same period last year. For the six-month period ended June 29, 2008, the net loss applicable to common stockholders was $3,362,000, or $1.25 per basic and diluted share, compared to a loss of $3,273,000, or $1.25 per basic and diluted share, for the same period last year.

With approximately 16,600 machines located in 43 states throughout the United States and Canada, Glacier is the leading provider of high quality, low-priced drinking water dispensed to consumers through self-service bottled water machines located at supermarkets and other retail locations.

Statements in this announcement that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. A copy of the Company's audited financial statements for the year ended December 30, 2007 are available on the Company's website, www.glacierwater.com, or can be obtained by contacting Steve Stringer at (760) 560-1111.

Summary Financial Information

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