FOR IMMEDIATE RELEASE:     Thursday, March 28, 2001

CONTACT:     Thomas Gillespie, President                 Madeleine Franco
             Chief Executive Officer                     Jordan Richard Assoc.
             Aqua Vie Beverage Corporation               801-268-8610
             208-622-7792                                ir@jordanrichard.com
             www.aquavie.com

           AQUA VIE FINALIZES STRATEGIC PRODUCTION EXPANSION AGREEMENT

       Shipments to Southern California grocery chains are underway, with
            product expected in Albertson's and Ralphs during April.

KETCHUM,  IDAHO--Aqua  Vie Beverage  Corporation  (OTC BB: AVBC) announced today
that it has  finalized  a  strategic  production  expansion  agreement  with its
primary  contract  manufacturer,  that provides for the rapid deployment of Aqua
Vie  Hydrators(TM)  into  the  California  grocery  chain  market,  without  any
additional  capital  investment by AVBC.  An 8-K  pertaining to the agreement is
expected to be filed with the Securities and Exchange Commission within the next
ten (10) days.

The  strategic  production  financing  agreement  provides for the sustained and
continuous  financing of production and shipment of the company's  complete line
of products,  on an interest-  and financing  fee-free  basis and is expected to
provide  sufficient  production  financing  for  rapid and  large-scale  product
deployment.

AVBC recently  finalized  product  placement with two large southern  California
grocery  chains.  With initial  purchase  orders having been received,  Aqua Vie
Hydrators are expected to become available throughout southern California on the
shelves of over 300 Albertson's  stores  (albertsons.com)  within the next three
weeks,  and in over 300 regional Ralphs  (ralphs.com)  stores in late April. The
initial case volume  attributable to the region is expected to exceed $3 million
in the first year.

Aqua Vie's strategic production expansion agreement will also provide production
financing  for sales into  additional  regions in Aqua Vie's  ongoing  marketing
program.  AVBC will make  additional  announcements  as  arrangements  for these
markets are concluded.

"Following  our regional  test  marketing  in 2000,  this  production  financing
agreement,  together  with orders in hand,  will enable Aqua Vie to escalate its
regional  sales and  market  expansion  program  aimed at  regional  saturation,
beginning in the key California  market," said Thomas  Gillespie,  president and
chief executive officer.

Aqua  Vie  Beverage  Corporation  develops  and  markets  all-natural,   lightly
flavored, still (non-carbonated) bottled spring water. The company's low-calorie
alternative  beverages are bacteria-free and contain no preservatives.  Aqua Vie
produces and markets the Hydrator(TM) line of beverages in the United States and
Europe.  This  beverage  line,  comprised  of  seven  low-calorie,   all-natural
beverages  that are lightly  flavored and  packaged in  half-liter  bottles,  is
designed  to  increase  one's  personal  consumption  of water,  naturally.  The
underlying technology also serves as the delivery system for Aqua Vie's new line
of children's Hydrators(TM),  PurePlay(TM),  and Eau Vin(TM), Aqua Vie's line of
nonalcoholic wine and champagnes made from spring water. For further information
about  Aqua  Vie  Beverage   Corporation,   visit  the  company's  web  site  at
www.aquavie.com.

NOTE: Statements contained in this news release that are not strictly historical
are forward-looking  within the meaning of the safe harbor clause of the Private
Securities  Litigation  Reform Act of 1995.  The company makes these  statements
based on information  available to it as of the date of this news release and it
assumes no responsibility to update or revise such  forward-looking  statements.
Editors and investors are cautioned that such forward-looking  statements invoke
risk and  uncertainties  that may cause the company's  actual  results to differ
materially from such forward-looking  statements.  These risks and uncertainties
include,  but  are  not  limited  to,  demand  for the  company's  product  both
domestically  and  abroad,  the  company's  ability to  continue  to develop its
market,  general economic  conditions,  and other factors that may be more fully
described  in the  company's  literature  and  any  periodic  filings  with  the
Securities and Exchange Commission.
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