Glacier Water announces new CEO and first quarter results

Glacier Water Services, Inc. announced today financial results for the quarter ended April 1, 2001 and the appointment of a new Chief Executive Officer.

May 16th, 2001

CARLSBAD, Calif., May 14, 2001 — Glacier Water Services, Inc. announced today financial results for the quarter ended April 1, 2001 and the appointment of a new Chief Executive Officer.

Ric Kayne, Chairman of the Board, announced today that Brian McInerney will assume the position of Chief Executive Officer effective May 14, 2001. McInerney was most recently Vice President of Honeywell International where he was responsible for the Worldwide Autolite Products Division. Kayne stated, "I am very pleased to announce Brian's arrival. He brings to the Company a record of success and his skills and expertise compliment nicely those of the other members of the Company's talented management team. I anticipate that this team will make the Company significantly more profitable in short order."

For the quarter ended April 1, 2001, revenues increased 5.1% to $13,440,000 from $12,785,000 for the quarter ended April 2, 2000. The Company stated that this increase in revenues reflected increased revenues per machine for the quarter compared to the same quarter last year, during which revenues were negatively impacted by Y2K-related increased bottled water sales in December 1999. Because consumers experienced no significant problems associated with Y2K, these purchases were consumed in January and February 2000, which resulted lower demand for drinking water during the quarter ended April 2, 2000. Revenue for the quarter ended April 2, 2000 included approximately $110,000 associated with the Company's operation in Mexico City, Mexico, which was discontinued during the third quarter of fiscal 2000.

Earnings from operations before depreciation, and amortization increased to $2,336,000, from $2,200,000 last year. The Company incurred a loss before an extraordinary gain from the early retirement of debt of $2,021,000 compared to $2,376,000 for the same quarter a year ago. After interest, taxes, and an extraordinary gain from the early retirement of debt of $4,000, the net loss for the quarter was $2,017,000, or $0.71 per diluted share, compared to a net loss of $1,303,000, or $.46 per diluted share for the quarter ended April 2, 2000, which included an extraordinary gain from the early retirement of debt of $1,073,000.

During the quarter ended April 1, 2001, the Company repurchased 400 shares of Glacier Water Trust Preferred Securities (Amex: HOO_pa) at an average price of $13.55 per share. This resulted in a net extraordinary gain of $4,100, which was the result of a gain of $4,600, less the write-off of $500 of related deferred debt costs. As of April 1, 2001, the Company had repurchased a total of 921,400 shares of the Trust Preferred Securities at an average price of $16.41 per share. The Company is authorized to purchase up to 1,250,000 shares in the open market as part of the Company's stock repurchase plan. The Company may continue to make such purchases from time to time in open market transactions or block trades.

With over 13,000 machines located in 35 states throughout the United States, Glacier is the leading provider of high quality, low-priced drinking water dispensed to consumers through self-service vending machines located at supermarkets and other retail locations.

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