Eldorado Artesian Springs Announces Fiscal 2008 Financial Results

LOUISVILLE, CO, Jun 27 (MARKET WIRE) --
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
============ ============

Contacts:

Doug Larson
Chief Executive Officer
Eldorado Artesian Springs, Inc.
303-499-1316
Email Contact

Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
303-393-7044
Email Contact

Copyright 2008, Market Wire, All rights reserved.

-0-