TULSA, Okla., Dec. 22, 2006 (PRIME NEWSWIRE) -- Global Beverage Solutions, Inc. (OTCBB:GBVS) today announced it has signed a letter of intent to acquire XStream Beverage Network of Maryland, Inc., a wholly owned subsidiary of XStream Beverage Network, Inc. (OTCBB:XSBV). Based in Jessup, Maryland, XStream Beverage Network of Maryland, Inc. (formally Master Distributors) is a leading Mid-Atlantic New Age Beverage Distributor. The Company had revenue of $10.2 million in 2005 with EBITDA of $426,000.
According to the letter of intent, XStream Beverage Network will receive common stock in Global Beverage Solutions and issue a $2 million note payable to XStream. The letter of intent is subject to due diligence by both parties and reaching a mutual agreement to the common stock component of the transaction.
It is anticipated that XStream President, Jerry Pearring, will become president and CEO of Global Beverage following the transition.
"This is a very significant development for the growth and maturation of our company," said Richard Clark, chairman, CEO and president of Global Beverage Solutions, Inc. "Aside from the revenues and earnings that XStream Beverage Network of Maryland will bring to our Company, it can also serve as a distribution platform for the current Rudy Beverage and EON Beverage brands as well as any new brands we might acquire or introduce in the future. Moreover, our management team will be strengthened with the addition of senior executives from XStream Beverage Network who have extensive experience and expertise in the beverage industry specifically as it relates to launching new brands."
About Global Beverage Solutions, Inc.
Global Beverage Solutions, Inc. (OTCBB:GBVS) invests in a portfolio of companies in the beverage industry. Its portfolio companies include EON Beverage Group, Inc. and Rudy Beverage, Inc. For additional information, please visit www.globalbeveragesolutions.com.
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About XStream Beverage Network, Inc.
XStream Beverage Network, Inc. is an emerging brand development and distribution company in the fast growing $21 billion 'new age' beverage industry. XStream develops, markets, sells and distributes innovative new age beverage natural sodas, fruit juices, and energy drinks. In addition, XStream also operates as a wholesale distributor of highly recognized third-party new age beverage brands such as Fiji Water, Arizona and Welch's.
Safe Harbor:
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The risks and uncertainties that may affect the operations, performance development, and results of the Company's business include but are not limited to fluctuations in financial results, availability and customer acceptance of our products and services, the impact of competitive products, services and pricing, general market trends and conditions, and other risks detailed in the Company's SEC reports.