LOS ANGELES, Jan. 18 /PRNewswire-FirstCall/ -- Royal Spring Water Inc., (OTC:RSPG), (the "Company") a bottler and distributor of pure, water from the "Ogallala Aquifer", announced today that it has signed a two year convertible note for $1,250,000. The agreement was signed at the end of December 2006, and the funds were deposited into the Royal Spring Water Inc. account on December 27, 2006. In addition to the two-year convertible note, the agreement provides for the issuance of 500,000 warrants, with exercise prices ranging from $2.00 (two dollars) to $5.00 (five dollars) over the next 5 years. Royal Spring Water Inc. has the option to pay the loan back within the next two years with a profit kicker to the investment fund. If the investment fund chooses to convert the note into Royal Spring Water Inc. common stock, the conversion will be done at a discount to market price. The funds were provided to Royal Spring Water Inc. after their investment fund's financial representatives visited our plant, met with senior management and conducted their due diligence. The funds will be used for working capital and purchases of additional bottling equipment as our sales increase. Alex Hazan, President and CEO, "We are extremely pleased to receive funding with favorable terms as provided in this agreement. We received several offers to provide our company with funding, which shows the strength of our company." Royal Spring Water Inc. (http://www.royalspringswater.com/), bottles and distributes 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. Our 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. Cautionary Statement Pursuant to Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995: This press release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Expressions of future goals and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. The Company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this news release. DATASOURCE: Royal Spring Water Inc. CONTACT: Maxwell Network Group Inc., Sheldon Gold, Mira Anidjar, Investment Relations, 1-800-596-5503, http://www.maxwellnetwork.com/

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