Eldorado Artesian Springs Announces Fiscal 2008 Financial Results

LOUISVILLE, CO--(Marketwire - June 27, 2008) - Eldorado Artesian Springs, Inc. (OTCBB: ELDO) today announced financial results for its fiscal year ended March 31, 2008.

Revenue increased 2.5% in fiscal 2008 to $8.5 million from $8.2 million a year ago. The increase is largely attributable to higher sales of the Company's PET products (.5 liter to 1.5 liter sizes), which grew to $1.8 million, or 21.2% of total sales, from $1.6 million, or 19.7% of total sales, in 2007. Sales of private label PET products increased nearly 82% year over year.

Also contributing to higher total sales was the Company's new Organic Vitamin Charged Spring Water product line that was introduced in the second quarter and which achieved steady gains throughout the year. The Company also benefitted from increased sales of water filters, coffee, and coffee equipment and accessories -- all new offerings in recent years designed to leverage Eldorado's strong home and office delivery channel.

"Our growth strategy entering 2008 was to use internally generated cash and leverage our asset base to fund select growth initiatives, and we are pleased to report that we have made excellent progress in that regard," said Doug Larson, president and CEO. "By focusing on strengthening our core business while rolling out promising new product lines, we are building value for our shareholders without diluting them with expensive capital or significantly increasing our debt load.

"During the year we successfully launched our new Organic Vitamin Charged Spring Water line, which is now carried in a growing number of major grocery chains and which we believe to be the best tasting and only organic offering in the vitamin enhanced water space -- the fastest growing segment of the bottled water industry. In addition, we invested in a reverse osmosis purification system in preparation for launching our first-ever purified drinking water product line."

Gross profit increased to $6.6 million from $6.5 million year over year based on higher revenue run rate, but gross profit as a percent of revenue decreased slightly due to higher costs of bottles and packaging. Total operating expenses increased to $6.9 million in fiscal 2008 from $6.2 million a year ago as the Company increased production-related wages and ramped up sales and marketing initiatives in support of new product rollouts. A 33.8% increase in fuel costs and higher legal and engineering fees related to critical water rights acquisitions also contributed to increased operating expenses. Higher expenses in most categories were partially offset by lower fleet maintenance and equipment leasing costs.

Eldorado reported a net loss of $311,300, or $0.05 per basic and $0.01 per diluted share, in 2008 as compared with net income of $87,600, or $0.01 per basic and diluted share, in 2007. The $311,300 net loss included non-cash expenses of approximately $485,600, including $411,000 in depreciation and amortization and $75,000 in stock-based compensation. The Company invested $688,400 in 2008 to strengthen its water rights portfolio and add a reverse osmosis system to support rollout of the new one-gallon purified drinking water line. Eldorado closed 2008 with working capital of $983,500.

About Eldorado Artesian Springs, Inc.

Eldorado Artesian Springs, Inc. is a leading bottler, marketer, and distributor of natural spring water beverages in the Rocky Mountains. The Company's growing product portfolio includes the nation's only Organic Vitamin Charged Spring Water, which was recently introduced in six flavors and has generated strong market acceptance. The Company also markets five-gallon and three-gallon bottles of water directly to homes and businesses, national retail grocery chains, and regional distributors. Additionally, the Company markets its water in smaller, more convenient size packaging to retail food stores. The source of the natural spring water is located on property owned by the Company in Eldorado Springs, Colorado. More information about the Company can be found at http://www.eldoradosprings.com.

Safe Harbor Statement

Some portions of this press release, particularly those describing Eldorado's goals and strategies, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While Eldorado is working to achieve those goals and strategies, actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties, including difficulties in marketing its products and services, need for capital, competition from other companies and other factors, any of which could have an adverse effect on the business plans of Eldorado, its reputation in the industry or its expected financial return from operations and results of operations. In light of significant risks and uncertainties inherent in forward-looking statements included herein, the inclusion of such statements should not be regarded as a representation by Eldorado that it will achieve such forward-looking statements. For further details and a discussion of these and other risks and uncertainties, please see our most recent reports on Form 10-KSB and Form 10-QSB, as filed with the Securities and Exchange Commission, as they may be amended from time to time. Eldorado undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.

Statements of Operations

(Unaudited)                                         12 months ended
                                                        March 31,
                                                   2008           2007
                                               ------------   ------------
Revenues
   Water and related                           $  8,297,186   $  8,104,710
   Rentals                                           12,000         12,000
   Pool and other                                   148,226        131,597
                                               ------------   ------------
       Total revenues                             8,457,412      8,248,307
                                               ------------   ------------
Cost of goods sold                                1,860,315      1,732,078
                                               ------------   ------------
Gross profit                                      6,597,097      6,516,229
                                               ------------   ------------
Operating expenses
   Salaries and related expenses                  3,586,933      3,152,611
   Administrative and general                     1,801,118      1,579,282
   Delivery                                         848,769        799,130
   Advertising and promotions                       286,810        202,392
   Depreciation and amortization                    411,035        446,537
                                               ------------   ------------
       Total operating expenses                   6,934,665      6,179,952
                                               ------------   ------------
(Loss) income from operations                      (337,568)       336,277
                                               ------------   ------------
Other income (expense)
   Other income                                           -         92,300
   Gain on the sale of property                     178,722              -
   Interest income                                   56,039         42,626
   Interest expense                                (342,629)      (297,599)
                                               ------------   ------------
       Total other expense                         (107,868)      (162,673)
                                               ------------   ------------
(Loss) income before income taxes                  (445,436)       173,604
Income tax (expense) benefit
   Current                                                -       (138,990)
   Deferred                                         134,128         52,970
                                               ------------   ------------
       Total income tax benefit (expense)           134,128        (86,020)
                                               ------------   ------------
Net (loss) income available to common
 shareholders                                  $   (311,308)  $     87,584
                                               ============   ============
Basic weighted average common shares
 outstanding                                      6,274,028      6,012,178
                                               ============   ============
Basic (loss) income per common share           $      (0.05)  $       0.01
                                               ============   ============
Diluted weighted average common shares
 outstanding                                      6,274,028      6,361,934
                                               ============   ============
Diluted (loss) earnings per share              $      (0.05)  $       0.01
                                               ============   ============


Balance Sheet
                                                 March 31,      March 31,
                                                   2008           2007
                                               ------------   ------------
ASSETS

Current Assets
   Cash                                        $    389,440   $    607,759
   Accounts receivable - trade, net                 893,660        842,681
   Inventories                                      437,171        196,447
   Prepaid expenses and other                       107,144         74,481
   Deferred tax asset                                29,648         29,648
                                               ------------   ------------
       Total current assets                       1,857,063      1,751,016
Non-current assets
   Property, plant and equipment, net             4,177,350      4,258,225
   Notes receivable, related party                  318,138        590,450
   Water rights, net                                432,871         74,600
   Deposits                                         135,785        109,004
   Other, net                                       184,302        125,811
                                               ------------   ------------
       Total non-current assets                   5,248,446      5,158,090
                                               ------------   ------------
       Total assets                            $  7,105,509   $  6,909,105
                                               ============   ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
   Accounts payable                            $    417,929   $    254,059
   Accrued expenses                                 318,352        243,218
   Customer deposits                                 80,530         93,584
   Income taxes payable                                   -        100,366
   Current portion of long-term debt                 56,748         84,793
                                               ------------   ------------
       Total current liabilities                    873,559        776,020
Non-current liabilities
   Long-term debt, less current portion           4,403,789      3,944,333
   Deferred tax liability                            75,480         96,638
   Deferred gain on the sale of real estate         178,822        357,544
                                               ------------   ------------
       Total non-current liabilities              4,658,091      4,398,515
                                               ------------   ------------
       Total liabilities                          5,531,650      5,174,535
                                               ------------   ------------

Stockholders' equity
   Preferred stock                                        -              -
   Common stock                                       6,426          3,015
   Additional paid-in capital                     1,634,159      1,486,973
   Retained earnings (deficit)                      (66,726)       244,582
                                               ------------   ------------
       Total stockholders' equity                 1,573,859      1,734,570
                                               ------------   ------------
       Total liabilities and stockholders'
        equity                                 $  7,105,509   $  6,909,105
                                               ============   ============

Contact Information: Contacts: Doug Larson Chief Executive Officer Eldorado Artesian Springs, Inc. 303-499-1316 Jay Pfeiffer Pfeiffer High Investor Relations, Inc. 303-393-7044