LOS ANGELES, June 29 /PRNewswire-FirstCall/ -- Royal Spring Water Inc. (OTC:RSPG), a bottler and distributor of pure, sweet water from the Artesian wells of the Ogallala Aquifer, announced today that it has signed an agreement with National Lampoon, Inc. (AMEX:NLN) The agreement is for a three (3) year term and has an automatic two (2) year extension at the end of the 3 years. Under this agreement, Royal Spring Water will bottle and distribute a new line of private Label water and private label flavored water, with the National Lampoon brand name and its products on the label. National Lampoon and Royal Spring Water agreed that the new bottled water private label product will be a collaboration of efforts by both companies. National Lampoon and Royal Spring Water agreed that the market for the distribution and sale of the new private label bottled water products shall be universities and colleges across the United States, as well as major retail chain stores targeted at the 18-35 year old market. National Lampoon agreed to advertise the new products in all National Lampoon media, which includes but not limited to, National Lampoon cable Television Networks, Magazines and any or all National Lampoon websites. Royal Spring Water will provide the content for the TV spots while National Lampoon will create and provide all other media advertising. The first private label product is scheduled to be launched by the end of July 2006. Dan Laikin, CEO of National Lampoon said "This is a phenomenal opportunity for National Lampoon to market and promote our brand name and brand products". Mr. Laikin added, "We expect to have several unique and funny private label products that will cater to our core audience of young adults". We will use our strength in universities and colleges around the country to brand the National lampoon/Royal Spring private label bottle water product. National Lampoon and Royal Spring Water will market the new private label bottle water products to the streets, residences, dormitories, bars, nightclubs, coffeehouses and other lifestyle-targeted locations within key markets, with content integration and on line banner advertising. With the fact that the National Lampoon cable television network reaches as many as 4.8 million students, or nearly one in four of all 18 to 24 year old college students, we project that the new private label bottled water and flavored water will become a huge hit. Alex Hazan, Royal Spring Water's President and CEO said, "This is a major achievement for Royal Spring Water to reach an agreement with a company like National Lampoon, which has been in business for the past 35 years and is a diversified entertainment company with seven integrated media platforms. Based on using these platforms to advertise and promote the new private label products combined with our high quality of bottled water and our competitive prices, we expect that this agreement will generate strong revenues. About Royal Spring Water Inc. Royal Spring Water (www.royalspringswater.com) bottles and distributes purified water from the Artesian wells of the Ogallala Aquifer. The Company's underground water source has existed for millions of years and is part of the "Ogallala Aquifer", one of the country's largest and best water quality aquifers. This pure water from the Artesian wells is already cold and free of organic contaminants, making it desirable for drinking. The state-of-the-art facility in Hereford, Texas is where water is extracted from underground wells, then processed through a complex filtration and bottling system. In addition to producing high quality water, the facility allows for the manufacturing of plastic bottles and labels providing a fully customized product for a very competitive price. About National Lampoon, Inc. National Lampoon (AMEX:NLN) is and has been one of the leading brands in comedy for over 35 years. National Lampoon is active in a broad array of entertainment activities, including feature films, television programming, interactive entertainment, home video, comedy audio CD's and book publishing. The company also owns interests in all major National Lampoon properties including "National Lampoon's Animal House," the National Lampoon "Vacation" series, and "National Lampoon's Van Wilder. The new "National Lampoon Network" currently serves over 600 colleges and universities throughout the United States, including major institutions of higher learning both in and out of the Pac 10, Ivy League, and Big 10. The cable network reaches as many as 4.8 million students, or nearly one in four of all 18 to 24 year old college students. In the 1970's and 80's, National Lampoon was the most widely read publication on college campuses, while today, the website, http://www.nationallampoon.com/, is one of the most popular humor sites on the Internet. Since the launch of nationallampoon.com, the famous "NatLamp" brand of humor is now available worldwide. In addition, the site serves a launching pad for future comedy projects in motion pictures, television programming, multimedia, books, audio, video, and a wide array of merchandise. Currently the National Lampoon Humor Network has a 30M unique visitors/month http://www.nationallampoon.com/ and http://www.togatv.com/ Important Information About Forward-Looking Statements The above statements in regard to Royal Spring Water, which are not purely historical, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Royal Spring Water's beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and are based on information available to the parties as of such date. It is important to note that the actual outcome and the actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties, such as technological, legislative, corporate, financial and marketplace changes. All statements in this news release that are other than statements of historical facts are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward- looking statements by using words such as "anticipates," "believes," "could," "expects," "intends," "may,' "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. A number of factors may affect our future results and may cause those results to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions. For further information contact: Maxwell Network Group - Sheldon Gold/Mira Anidjar Investment Relations (416) 748-7800 or 1 (800) 596-5503 http://www.maxwellnetwork.com/ DATASOURCE: Royal Spring Water Inc.; National Lampoon, Inc. CONTACT: Maxwell Network Group - Sheldon Gold, Mira Anidjar, Investment Relations, (416) 748-7800 or (800) 596-5503, http://www.maxwellnetwork.com/

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