Re: OTC MARKET BULLETIN: 7-Eleven Stores looking to add QENC bottled water Tue, 09 Mar 2004 12:29:11 -0600

Re: OTC MARKET BULLETIN: 7-Eleven Stores looking to add QENC bottled water Tue, 09 Mar 2004 12:29:11 -0600

[Elisabeth Roe]

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OTC FIRST ALERT - QENC NET INCOME for FY ending 12/31/03 INCREASED 523%

Symbol: QENC
Market: OTC
Sector: High End Natural Bottle Water

BREAKING NEWS: Feb 20, 2004 (CCNMatthews via COMTEX) -- QENC today announced its entry into the Chinese marketplace with a  $2 Million deal in place

BREAKING NEWS: Feb 4, 2004 (COMTEX) - QENC announced net income for FY ending 12/31/03 increase 523% from the prior year.

BREAKING NEWS: Feb 4, 2004 (COMTEX) - QENC announced today its televised photo shoot of Queench Brands during our sponsored segment coverage of UPN Reality Show "America's Next Top Model" with Tyra Banks

BREAKING NEWS: Jan 28, 2004 (BUSINESS WIRE) -- Queench, Inc. (OTC: QENC) In Negotiations with 7-Eleven Stores for Nationwide Launch of Queench Products - 7-Eleven is looking forward to adding to their inventory various sizes of Queench water products. 7-Eleven has more than 4000 stores nationwide. Each store consistently serves on average 1300 customers in a 24-hour period, giving Queench products added exposure within their market share.

BREAKING NEWS:  Jan 8, 2004 -- QENC is now a full-time supplier of bottled water to the military.  QENC today announced that it has completed inspection and approval of its water bottling plants by the U.S. Army Veterinary Command (VETCOM).



Jim Furey of Lehman Brothers says, "You want to own small stocks versus large stocks when economic growth is accelerating, which is exactly the period we're in now."

QENC is a small company perfectly poised to harness the $7.6 billion bottle water segment with a high quality premium brand priced competitively.

The bottled water segment is the fastest growing of the beverage market.  Of the $100 billion beverage industry, bottled water is nearly $7.6 billion annually, and forecasted to grow over 50% over the next 5 years.

In this bottled water segment, QENC has the best of both worlds, where unlike Aquafina and Dasani, QENC is high-end natural spring water, and unlike Evian, QENC is competitively priced.  QENC's target consumer is health and beauty conscious including Gen Y, Gen X, and Baby Boomers who live a metropolitan lifestyle.

QENC currently offers two fantastic product lines: Queech Natural Spring Water and the Queech Flavored Water Beverages, which are vitamin-enhanced and come in five cool new flavors: Coconut, O' Ginger, Red Raspberry, Pineapple and LeMon.


DISTRIBUTION

QENC is entering the $60 million Chinese marketplace with a $2 million deal in place.  Queench water will be manufactured and distributed in China and be made available to the over 12.8 million residents of Beijing

Jan 28, 2004 QENC announced today that 7-Eleven is looking forward to adding to their inventory various sizes of Queench water products. 7-Eleven has more than 4000 stores nationwide. Each store consistently serves on average 1300 customers in a 24-hour period, giving Queench products added exposure within their market share.

QENC bottled water is nationally distributed through SYSCO FOODS.  SYSCO Foods is the largest food distributor operating 145 locations and has sales and service relationships with 420,000 customers including restaurants, healthcare and educational facilities, lodging establishments, and more.  This relationship provides key access to new markets with low capital requirements.

QENC completed inspection and approval of its plants by the US Army Veterinary Command (VETCOM).  QENC's been supplying the military contract in the South and Florida and the Army has been increasing orders on a monthly basis, which will result in higher Q1 2004 revenue.

QENC's strategically placing new eye-catching vending machines in locations on college campuses, retail, entertainment and sports venues and convenience stores.  500 vending machines installed in initial rollout in 2003 with approx. 2,500 vending machines to be installed in a 3-year period. The beverage-vending channel is typically highly profitable.



FINAL CONSIDERATIONS

QENC is entering the $60 million Chinese marketplace with a $2 million deal in place

7-Eleven is looking forward to adding to their inventory various sizes of Queench water products.

QENC's net income for FY ending 12/31/03 INCREASED 523% from the prior year.

QENC water televised photo shoot of Queench Brands during a sponsored segment coverage of UPN Reality Show "America's Next Top Model" with Tyra Banks

QENC's NET INCOME for the Q3 ending 9/30/03 increased 76.8% from the Q2, and a 987% increase year-to-year. Net income for the 9 months ending 9/30/03 resulted in a 1274% year-to-year increase.

QENC's SALES for the Q2 of 2002 increased 77% to $848,269 year-to-year, from $478,052, as a result of rolling out new product lines and implementing a channel development strategy.

QENC's high quality premium water is priced very competitive, they have an excellent distribution channel with SYSCO and strategically placed vending machines, and a marketing campaign designed to focus on their target market. For a young company QENC has made substantial accomplishments and is poised to harness their segment of the $7.6 billion bottle water industry.




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The information herein is for information purposes only and should not be construed as an offer or solicitation of an offer to buy or to sell securities. This assembled information is based on information supplied by the company, press releases, SEC filings, or from other sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The data contained herein is subject to change without notice. Small-cap companies, micro-cap companies, penny stocks and/or thinly traded securities are inherently risky and volatile; therefore the risk of losing some or all should be calculated. Please always do your own due diligence and consult a financial advisor. Americall accepts no liability for any losses arising from an investor's reliance on or use of this report. Americall has been paid twelve thousand dollars for the dissemination of this information. Americall and its affiliates, officers, directors, members and employees may hold, buy or sell common shares of profiled companies in the open market without notice. On technical analysis may from time to time cause the target price to fluctuate without notice. Certain information included herein is forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. Such forward-looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein.

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