JSC Healthy Water Inc

Water Is Georgia’s Number One Mineral Resource

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High mountains in Georgia provide an abundance of water resources

Renewable source of water

Water resources in Georgia are high compared with The World Average

Up to 50 resorts based on mineral springs and aquifers

Georgian water resorts were famous destinations of the Soviet people

Substantial Economic Progress Since 2003 Dramatically minimized and simplified licensing Very low taxes Low corruption Simplified customs regime since August 2006 Beneficiary of EU GSP+, granting companies the right to export 7 200

categories of goods duty-free Low Cost of Energy Cheap Workforce Strategic Location of the Country

Why Georgia

Ease of Doing Business, 2010

Healthy Water

1905

Source of mineral water discovered in Nabeghlavi

Unique content, taste and healthful features

Factory production starts

Limited production mostly for Kazakhstan

Water and brand not popular in Georgia

Factory closed in 1990

1958-1990

Modernized factory

Increased production by 800 percent

Market share reached 51 % from 6%

In 2007 Purchased 25-year exclusive license for extraction of Nabeghlavi and Bakhmaro waters

2003-2007 2009

United under holding Margebeli JSC

Holding managing several food and beverage producing companies in Georgia

Healthy Water Ltd. created

Georgian and Swiss private investors

New Nabeghlavi brand

Stating capital of 50 000 USD

Utilized inefficient Russian equipment

1998 2002

Started producing still water Bakhmaro

2010

Poised for major international expansion

June 2010 opened representative office in Ukraine

Aggressive Export Growth

2011

Working on new Export Markets

Planned Technology Investment

Management Team & Key Persons

Family Business managed by founders since first days of company establishment

12 year experience of establishing, growing and developing a leader company on local market with

Experienced technical staff Reliable Partners worldwide, like

Krones AG State of the art factory, Up-to date technology Well built distribution channel

Mikheil Svimonishvili

Economics, Zurich State University, Switzerland Information Systems, Tbilisi State University Economics, Bruchsal Academy of Commerce,

German Consultant, Healthy Water Governor of Guria Region Minister of Agriculture City Planner, Tbilisi

Gia Gogoladze

Economics and Engineering, Tbilisi State University

Director, Healthy Water Economist, United Georgian Bank

Avtandil Svimonishvili

PhD, Geography, Moscow State University Economic Geography, Tbilisi State University Director General, Healthy Water First Secretary, Ministry of Foreign Affairs Researcher, Georgian Scientific Institute Translator, Isfahan Metallurgical Plant, Iran

Product Portfolio

Hydrocarbonate sodium table water

enriched with natural CO2subtle taste and unique

curative propertiesMineralization 3.5 – 5.9 g/l

Nabeghlavi Bakhmaro

Spring water To the surface at the health

resort situated at the height of 2000m above sea level.

Very soft water Rich with oxygen Perfect pH indicator: - 7.5.

Production Facility located at the foothills of the Caucasus, ecologically clean zone in Western Georgia Elaborate system of pipelines connects several bore wells and the bottling plant,

situated in village Nabeghlavi, nearby the sources Equipped with state-of-the-art European automatic bottling lines from “KRONES”,

with the capacity of 30000 bottles per hour Proved by a Certificate of Conformity with EU standards and ISO 9001:2000 Contractor supplier of Defense Logistics Agency (DLA) In 2010 Sales Volume reached 62 mil. bottle

Sales Dinamics

Share Distribution

Healthy Water has dominated IDS Borjomi in Borjomi’s home market

New Developing Policy

Until 2010: Management completed building of the factory with latest technologies

and modern facility. Healthy Water became the leader on local market Obtained a 25 year general license Gained market share in the neighboring countries Established Distribution Infrastructure: storage buildings, strong network

with all essential equipments - distribution vehicles, branded refrigerators, software etc

Since 2010 Export has become the most important direction of development

Nowdays Export share is 20%in total sales

Distribution Channel

Distribution throughout Georgia by sister company of Healthy Water (Engadi)

Equipped with advanced software for distribution network control

State-of-the-art storage facility in logistical hub in the outskirts of Tbilisi

6500 active Trade Point (Supermarket Channels, HoReCa, Off-Trade)

600 active HoReCa Units

3000 branded refrigerators throughout Georgia

Very close relations with stores built up during the past years through day-to-day direct work and incentive systems

Strategic Location for Export Opportunities

Shortest Route Between Europe And Asia Via Silk Road

Access To The Black Sea To Reach Europe With Low Cost

Access To Railway To Reach Middle East, Caspian Sea

Access To Modernized Roads For Truck Transportation To Caspian, Middle East And Turkey

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North America

Asia/Australia

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Eastern Europe

Middle East

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Growth potential in Eastern Europe, Middle East and Asia

In 2008 global bottled water market grew by 4,5%

(CAGR) in 2003-2008 was 6,8 percent

Bottled water market expected to grow 3,7% in 2011 and 4% in 2013

Source: Zenith International Source: Zenith International

Healthy Water Will Focus Expansion Via Countries With:

Highest Growth Potential And Convenient Location

Strategically concentrated to export to Asia, Middle East and Eastern Europe Healthy Water will focus on the three regions

Priority export focus will be Nabeghlavi for premium segment while Bakhmaro will also follow

Nabeghlavi export potential is largely linked with popularity ofGeorgian cuisine in FSU countries, although other factors also play

PRIORITY IUkraineBalticsAzerbaijanKazakhstan

PRIORITY IIUSAPolandTurkmenistan BelarusUAE

PRIORITY IIIIsrael North AfricaEURussia

Export Countries Prioritized By:•Knowledge Of Georgian Cuisine (FSU, emigrants) For San Pellegrino

Effect Going For Ready Markets•Demand On Imported Sparkling Water (high proportion of sparkling

water consumption)•Relatively Stable Economies (to invest in building customers)

Aggressive expansion to CIS countries- current priority Ukraine

2010 Opening a representative

office Active Marketing

Campaign in largest Retail Channels and Business Centers

2011Integrated Marketing Campaign TV commercials with the most

recognizable Georgian Celebrity in CIS – Buba Kikabidze

Radio Trivia with prizes - 2 person Tour to Georgia, Nabeghlavi bottling plant and Batumi city

Wide media Coverage: with billboards, Printed and internet ads

Continuous tasting campaigns in largest retail chains

Address: Lot 204, Didi Dighomi, Tbilisi 0131, Georgia

Phone: (+995-32) 99 91 99, 98 69 82Fax: (+995-32) 93 17 59E-mail: info@HealthyWater.ge Website: www.HealthyWater.ge