AquaCell and Connecticut Water Service Sign Distribution Agreement for Purific Water Coolers

June 12, 2002

AquaCell Technologies Inc. and Connecticut Water Service Inc. signed a distribution agreement whereby Connecticut Water Service's wholly owned subsidiary, New England Water Utility Services Inc. will offer AquaCell's patented self-filling Purific Water Cooler to its customers and contact base.

"A recent survey of our customers showed that 40% are not drinking tap water, favoring bottled water or a point-of-use filtration system instead," said Marshall T. Chiaraluce, chairman, president and chief executive officer of Connecticut Water Service.

"While we know that we provide a reliable supply of high quality drinking water that meets all state and federal drinking water standards, we recognize that many people are sensitive to the taste of chlorine that is used to keep tap water safe. We see AquaCell's Purific Water Cooler as the perfect solution for those customers who prefer chlorine-free drinking water without compromising quality."

Chiaraluce continued: "Our company has a history of success in developing specific unregulated niche business built around our core competencies of treating and delivering a reliable supply of high quality water. We anticipate our strategic partnering for distribution of the Purific Water Cooler will facilitate expansion of unregulated business offerings.

"We believe that the Purific coolers' extensive filtration system, coupled with the permanently attached five-gallon bottle allows us to offer a product far superior to any other point-of-use water cooler system."

James C. Witham, chairman and chief executive officer of AquaCell said, "We are thrilled to be partnering with Connecticut Water Service as we recognize that they are a highly innovative company. Both we, and our marketing partner Corbett Water Technologies, view this as an excellent opportunity to obtain significant distribution.

"We recognize that our arrangement with Connecticut Water Service gives expanded endorsement of both AquaCell and the Purific cooler."

Witham continued: "This agreement opens up a whole new market for us and supports our belief that progressive public water companies recognize that some of their customers are interested in a convenient, chlorine-free product that does not compromise on tap water safety.

"We believe that Connecticut Water will be highly successful in its distribution of our Purific Water Cooler, since they have a reputation for offering quality products and service to its customers."

Initially, Connecticut Water will be offering only the flagship Purific model 500UV, and initial sales will focus on commercial customers, that are looking to lower their costs for bottled water while eliminating the hassle of changing heavy, clumsy bottles and the security concerns associated with bottled water delivery.

Under the terms of the agreement, AquaCell will provide Connecticut Water with specific training for the installation and service of the Purific Water Cooler, and Corbett Water Technologies will provide sales training.

Information about the Purific Water Cooler may be obtained at www.aquacell.com.

Source: Aquacell Technologies, Inc.

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