Eldorado Artesian Springs Announces First Quarter 2008 Financial Results

LOUISVILLE, CO--(Marketwire - August 12, 2008) - Eldorado Artesian Springs, Inc. (OTCBB: ELDO) today announced financial results for its first quarter ended June 30, 2008.

Revenue increased 2.4% in the first quarter to $2.2 million from $2.1 million in the first quarter last year. The increase is primarily attributable to two major factors: First, the Company's new Organic Vitamin Charged Spring Water, introduced in September 2007, continues to gain market acceptance with sales increasing 84% in the first quarter versus the fourth quarter ended March 31, 2008. Second, a 27% year-over-year increase in sales of the Company's private label PET products.

Total operating expense increased during the first quarter to $1.9 million from $1.7 million as the Company incurred higher delivery and fuel costs associated with gasoline price increases as well as higher professional fees and employee costs related to wages and insurance. In addition, the Company increased its investment in advertising and promotion in support of the rollout of its Organic Vitamin Charged Spring Water and incurred higher expenses related to strengthening its water rights portfolio. Net loss was $206,500, or $0.03 per basic and diluted share, versus a net loss of $49,000, or $0.01 per basic and diluted share, in the same quarter last year. The net loss included more than $116,000 in non-cash depreciation and amortization.

Doug Larson, president and CEO, said results were generally in line with management's expectations, adding that new product and distribution activities in recent months bode well for continued year-over-year revenue gains well into the future.

"We have invested considerably over the past two years into projects that make us optimistic for significant revenue growth in the coming months," Larson said. "Our new Organic Vitamin Charged Spring Water and a new one-gallon private label program initiated in June with one of the world's largest retailers are expected to be the two principal drivers of our future. Our strategy is to continue to improve core operations and to use capital generated internally to expand distribution and promotion of the Organic Vitamin Charged Spring Water line. Major distribution channels for our Organic Vitamin Charged Spring Water include Albertson's, Vitamin Cottage, K&G (Jenny's Markets), and one of the nation's premier health food supermarkets. Other distributors and food service organizations make the products available to more than 2,000 other retail outlets."

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-Q, 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)                                          Three months ended
                                                          June 30,
                                                     2008         2007
                                                  -----------  -----------
Revenues

   Water and related                              $ 2,175,050  $ 2,118,823
   Resort operations                                   42,288       46,203
                                                  -----------  -----------
      Net revenue                                   2,217,338    2,165,026
                                                  -----------  -----------

Cost of goods sold                                    521,696      446,247
                                                  -----------  -----------

Gross profit                                        1,695,642    1,718,779
                                                  -----------  -----------

Operating expenses

   Salaries and related                               971,322      899,781
   Administrative and general                         506,396      429,941
   Delivery                                           238,565      199,971
   Advertising and promotions                          96,618       70,089
   Depreciation and amortization                      116,568      104,321
                                                  -----------  -----------
      Total operating expenses                      1,929,469    1,704,103
                                                  -----------  -----------

   Operating (loss) income                           (233,827)      14,676
                                                  -----------  -----------

Other income (expense)

   Interest income                                      6,743       15,227
   Interest expense                                   (89,456)     (84,919)
                                                  -----------  -----------
      Total other expense                             (82,713)     (69,692)
                                                  -----------  -----------

Net loss before provision for income taxes           (316,540)     (55,016)

Income tax benefit                                    110,000        6,000
                                                  -----------  -----------

Net loss                                          $  (206,540) $   (49,016)
                                                  ===========  ===========
Basic loss per common share                       $     (0.03) $     (0.01)
                                                  ===========  ===========
Diluted loss per common share                     $     (0.03) $     (0.01)
                                                  ===========  ===========
Basic weighted average common
 shares outstanding                                 6,579,365    6,032,670
                                                  ===========  ===========
Diluted weighted average common
 shares outstanding                                 6,579,365    6,032,670
                                                  ===========  ===========



Balance Sheet
                                                    June 30,    March 31,
                                                      2008        2008
                                                  -----------  -----------
ASSETS

Current Assets

   Cash                                           $   215,232  $   389,440
   Accounts receivable - trade, net                 1,006,454      893,660
   Inventories                                        441,989      437,171
   Prepaid expenses and other                          81,555      107,144
   Deferred tax asset                                  29,648       29,648
                                                  -----------  -----------
      Total current assets                          1,774,878    1,857,063
                                                  -----------  -----------

Non-current assets

   Property, plant and equipment - net              4,287,879    4,177,350
   Notes receivable - related party                   324,093      318,138
   Water rights - net                                 432,871      432,871
   Deposits                                           149,148      135,785
   Long-term deferred tax asset - net                 145,944       35,944
   Other - net                                         68,120       72,878
                                                  -----------  -----------
      Total non-current assets                      5,408,055    5,172,966
                                                  -----------  -----------

      Total assets                                $ 7,182,933  $ 7,030,029
                                                  ===========  ===========
LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

   Accounts payable                               $   556,927  $   417,929
   Accrued expenses                                   254,629      318,352
   Customer deposits                                   83,517       80,530
   Line of credit                                     140,000            -
   Current portion of capital lease obligations        41,881            -
   Current portion of long-term debt                   52,835       56,748
                                                  -----------  -----------
      Total current liabilities                     1,129,789      873,559

Non-current liabilities
   Capital lease obligations, less current portion    106,900            -
   Long-term debt, less current portion             4,393,539    4,403,789
   Deferred gain on the sale of real estate           178,822      178,822
                                                  -----------  -----------
      Total non-current liabilities                 4,679,261    4,582,611
                                                  -----------  -----------
      Total liabilities                             5,809,050    5,456,170
                                                  -----------  -----------

Stockholders' equity

   Preferred stock                                          -            -
   Common stock                                         6,696        6,426
   Additional paid-in capital                       1,640,453    1,634,159
   Accumulated deficit                               (273,266)     (66,726)
                                                  -----------  -----------
Total stockholders' equity                          1,373,883    1,573,859
                                                  -----------  -----------

Total liabilities and stockholders' equity        $ 7,182,933  $ 7,030,029
                                                  ===========  ===========

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