Reaches 11,605 Total Beverage Dispenser Locations, a 32%                          Year-Over-Year Increase      Gross Profit Increases 16% Above Year Ago to $3.8 Million for the                            Second Quarter of 2009         Net loss for the Second Quarter was $4.7 million and Included             One-Time Charges for Retirement of Convertible Debt     Company Achieves Positive EBITDA in the Second Quarter and Expects to    Achieve Accelerated Revenue and EBITDA Growth during the Second Half                                    of 2009 

SAN DIEGO, Aug. 10, 2009 (GLOBE NEWSWIRE) -- Javo(R) Beverage Company, Inc. (OTCBB:JAVO), a leading provider of premium dispensable coffee and tea-based beverages to the food service industry, announced today its unaudited financial results for the second quarter and first half of 2009.

Financial Highlights for the First Half of 2009

    * Revenues for the first half increased 11% to $11.7 million from    $10.6 million in the first half of 2008.   * Dispensed products revenue for the first half was $10.7 million, up    26% over the same period in 2008.   * Gross profit margin for the first half expanded to 52%, an increase    of 720 basis points from the year ago period.   * Selling and marketing expenses were $4.2 million compared to $3.3    million in the first half of 2008.  Excluding variable marketing    allowances related to national account sales, selling and marketing    expenses were equal to the same period a year ago.   * Net loss was $7.9 million, compared to $4.1 million in the first    half of 2008.  Net loss for the first half of 2009 included one-    time non-cash charges associated with debt retirement.  Excluding    non-cash items, the Company had a net loss of $300 thousand in the    first half of 2009. 

Financial Highlights for the Second Quarter

    * Revenues increased 5% to $7.0 million from $6.7 million in the    second quarter 2008.   * Dispensed products revenue was $6.5 million, up 9% over second    quarter 2008.   * The Company's total base of beverage dispensers at the end of the    quarter was 11,605, an increase of 2,779 from the same period in    2008.   * Gross profit margin for the quarter grew to 53%, an increase of 470    basis points from the year ago period.   * Excluding variable costs, selling and marketing expenses were flat    year-over-year.   * Net loss was $4.7 million for the quarter, $2.5 million greater    than the second quarter of 2008.  Excluding non-cash items related    to the retirement of debt, the Company had a net income of $1.0    million in the second quarter of 2009.   * EBITDA (earnings before interest, taxes, depreciation and    amortization) was positive for the second quarter of 2009.   * Company completed a private offering of common stock and promissory    notes of $23 million which improved the financial and capital    structure and redeemed previously issued Senior Convertible Debt    and related Warrants. 

Quarter Review

For the second quarter of 2009, total revenue increased to $7.0 million, up 5% from revenue of $6.7 million in the same quarter in 2008. Revenue from dispensed products, the Company's primary source of revenue, grew to $6.5 million, a 9.0% increase compared to the prior year quarter. This improvement was due to an increase in beverage dispensing locations serving Javo's coffee and tea products to a quarter-ending total of 11,605, a 32% year-over-year increase. The year ago period included approximately $800 thousand of one-time distribution pipeline revenue associated with the roll-out of two large national account customers. Excluding these sales, total revenue increased by 26% and iced coffee sales grew by 42% versus a year ago.

For the second quarter of 2009, gross profit increased 16% to $3.8 million from $3.3 million in the same period of 2008. Gross profit margin for the quarter expanded by 470 basis points to 53% as the Company leveraged its operations through the integration of several manufacturing and distribution processes. In addition, the Company's higher sales level allowed it to realize cost savings in unit production and packaging costs and to reduce its overall freight charges. The Company expects continued improvement in its gross margin during the second half of 2009.

Second quarter 2009 sales and marketing expenses were $2.3 million compared to $1.9 million in the second quarter of 2008. The increase was primarily due to variable marketing allowances related to the Company's growing national account business. Excluding these national account pricing related allowances, selling and marketing expenses remained flat versus a year ago. The Company anticipates that sales and marketing expenses will decline as a percentage of revenue during the second half of 2009.

General and administrative expenses for the second quarter of 2009 were $2.3 million compared to $2.0 million for the same period last year. The year-over-year change was due, primarily, to a $397 thousand increase in non-cash depreciation and amortization expense. Excluding these non-cash expenses, general and administrative expenses declined compared to the same period last year. The Company expects that general and administrative expenses will decrease as a percent of revenue during the remainder of 2009.

For the second quarter of 2009, other income/expense items totaled $3.8 million compared to $1.6 million in the same quarter of 2008. The increase of $2.2 million was primarily due to a one-time non-cash write off associated with the redemption of the Company's senior convertible debt.

The Company's net loss for the quarter was $4.7 million, or $0.02 per share, compared with $2.2 million, or $0.01 per share, in the same quarter of the previous year. The increase of $2.5 million is primarily due to a $4.2 million write-off of the debt discount related to discounted redemption of its Senior Convertible Debt partially offset by $1.4 million of other income from the debt redemption. Excluding non-cash expenses, the Company had net income of $991 thousand, an improvement of $1.8 million over last year's same quarter loss of $799 thousand.

Liquidity and Capital Resources

Overall, the Company improved its cash position to $4.3 million as of June 30, 2009 compared to $0.9 million as of December 31, 2008. During the first and second quarters, the Company successfully closed a private placement of common stock and promissory notes, raising a total of $23.0 million in gross proceeds. The Company used net proceeds of the private offering to redeem its Senior Convertible Debt and related Warrants and intends to use the remaining proceeds for general corporate uses.

The Company views the benefits of the private placement and capital restructuring to be:

    * Elimination of future warrants related to the retirement of Senior    Convertible Debt.   * Elimination of future principal and interest payments related to    previous Senior Convertible Debt that was payable in cash and/or    common stock.   * Reduction of the Company's mandatory debt service for the third and    fourth quarters of 2009 by over $778 thousand per quarter, or    approximately 60%.   * Alleviation of overhang due to the potential sale of shares    associated with the prior debt instrument and related warrants. 

Management Comment

Cody C.