Glacier Water Announces Fiscal Year 2007 Results

Business Wire, March 28, 2008

VISTA, Calif. -- Glacier Water Services, Inc. (Pink Sheets:GWSV) announced results for the year ended December 30, 2007.

Brian McInerney, Chief Executive Officer of Glacier Water, said, "Glacier achieved record revenues in 2007 of $90,376,000, up 3.7% over the prior year. The 2007 revenue increase was the result of higher machine productivity and an increase in the number of machines on location across the U.S. During 2007 we added our 42nd and 43rd U.S. States with Glacier machines. Income from operations for the current year was $4,154,000 and was impacted by higher operating costs, including the costs to support new location growth. At the end of the year, Glacier had more than 16,300 machines at retailers across the U.S. and Canada providing high quality, great tasting drinking water."

Revenues for the year ended December 30, 2007 increased to $90,376,000 from $87,154,000, representing a 3.7% increase versus last year. The increase in revenue was primarily the result of higher volume per machine and more machine locations year-over-year. The net increase in machines in operation at the end of 2007 as compared to 2006 was approximately 400.

The Company's income from operations for the year ended December 30, 2007 was $4,154,000 compared to $4,577,000 for the same period last year. Income from operations for 2007 includes incremental non-cash compensation expense of $285,000 as compared to 2006. Additionally, the Company incurred higher operating costs in the form of labor, machine maintenance, licensing and permits, and fuel costs.

The Company's net loss applicable to common stockholders for the year ended December 30, 2007, was $4,878,000, or $1.85 per basic and diluted share, compared to a loss of $4,708,000, or $1.93 per basic and diluted share for the same period last year.

With approximately 16,300 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.

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GLACIER WATER SERVICES, INC.
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