Glacier Water Announces First Quarter 2009 Results

Business Wire, April 24, 2009

VISTA, Calif. -- Glacier Water Services, Inc. (Pink Sheets:GWSV) announced results for the first quarter ended March 29, 2009.

Brian McInerney, Chief Executive Officer of Glacier Water, said, “Glacier recorded first quarter 2009 revenues of $22,839,000, up 9.4% over the first quarter of last year. The revenue increase was driven by a combination of new location growth and increased sales productivity by machine. Glacier operated approximately 1,000 more machines at retail locations compared to last year. Income from operations for the first quarter was $669,000 compared to a loss for the first quarter last year of $245,000, primarily as a result of the increased margin from strong revenue growth and lower fuel costs. At the end of the quarter, Glacier had more than 17,300 machines located at retailers across the U.S. and Canada providing high quality, great tasting drinking water.”

Revenues for the quarter ended March 29, 2009 increased to $22,839,000 from $20,880,000, representing a 9.4% increase versus the same period last year. The increase in revenue was primarily the result of growth in the number of locations this year compared to last year, coupled with an increase in average sales per machine.

The Company’s income from operations for the quarter ended March 29, 2009 was $669,000 compared to a loss from operations of $245,000 for the same period last year. The year over year improvement was driven by increased revenues coupled with reduced fuel costs. Income from operations for the first quarter included non-cash compensation expense of $89,000 as compared to $80,000 for the first quarter of 2008.

The Company’s net loss applicable to common stockholders for the quarter ended March 29, 2009, was $1,423,000, or $0.52 per basic and diluted share, compared to a loss of $2,440,000, or $0.91 per basic and diluted share for the same period last year.

With approximately 17,300 machines located in 42 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 28, 2008 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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