Business Services Industry

Glacier Water Announces First Quarter 2008 Results

Business Wire, May 12, 2008

VISTA, Calif. -- Glacier Water Services, Inc. (Pink Sheets:GWSV) announced results for the quarter ended March 30, 2008.

Brian McInerney, Chief Executive Officer of Glacier Water, said, "Glacier achieved first quarter revenues of $20,880,000, up 1.2% over the same period last year. The rate of growth was moderated by a couple of factors including soft sales in the Midwest driven by cold and wet weather and the impact of replacing some mature locations with newer developing locations. On a same store basis, sales increased by 5.3% as compared to last year. Loss from operations for the first quarter was $245,000 and was driven by higher operating costs to support new location growth and increased fuel costs. At the end of the first quarter of 2008, 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 quarter ended March 30, 2008 increased to $20,880,000 from $20,638,000, representing a 1.2% 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 March 30, 2008 as compared to April 1, 2007 was approximately 400.

The Company's loss from operations for the quarter ended March 30, 2008 was $245,000 compared to income from operations of $127,000 for the same period last year. The loss from operations for the first quarter 2008 includes non-cash compensation expense of $80,000 as compared to $62,000 for the first quarter 2007. Additionally, the Company incurred higher operating costs in the form of labor, machine maintenance, and fuel costs. Fuel costs in particular increased $83,000 as compared to last year.

The Company's net loss applicable to common stockholders for the first quarter ended March 30, 2008, was $2,440,000, or $0.91 per basic and diluted share, compared to a loss of $2,171,000, or $0.84 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.