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SODA-CLUB: AN INTRODUCTION

Sleek and stylish, the home soda maker is a countertop appliance about the size of a coffeemaker that transforms water into fresh, fizzy seltzer/sparkling water at the push of a button. Soda makers operate without batteries, electricity or plumbing, so they are simple to use in a kitchen and great for bringing along on a boat, RV or to a second home. Making seltzer and soda takes just seconds and requires no clean-up.

A reusable, one-liter carbonating bottle (provided by Soda-Club) is filled with water and screwed into the machine fitting. A CO2 carbonator, housed inside the soda maker, adds carbonation at the touch of a button – as much or as little as the consumer prefers. After carbonating the water, the soda drinker simply adds a capful from one of over 25 sodamix flavors to make his or her favorite, great-tasting soda.

Despite recently arriving in the US market, Soda-Club is the global leader of in-home carbonation. Over the past decade, Soda-Club’s home soda makers and soda-making accessories have been sold into over 10 million households in 18 countries around the world. In fact, it is estimated that over 800 million liters of water are carbonated with Soda-Club’s system worldwide each year.

PRODUCT AVAILABILITY

Soda-Club products are available through select retailers, plus several catalogs and internet stores. Our primary focus is building our business on the web. Online revenue doubled in 2005 and we expect online revenue to double again in 2006. We expect this continued growth to derive from excellent word-of-mouth in combination with outstanding public relations exposure and advertising.

SODA-CLUB IN THE NEWS
In recent months, Soda-Club products have appeared in Time Magazine, Food and Wine, Popular Science, The Wall Street Journal, Ebony Magazine, HGTV Kitchen Trends, The Chicago Sun-Times, The Boston Globe, The Baltimore Sun, The Dallas Morning News, The Seattle Times, Cooking Pleasures magazine, msnbc.com and many more. As we continue our PR efforts, and as consumers begin to become aware of Soda-Club (actually, the entire concept of in-home carbonation) we expect that demand will increase exponentially, creating a unique opportunity for affiliates looking to earn healthy commissions. Indeed, we consider our Affiliate Program to be an integral part of our e-commerce growth plan.

BENEFITS OF FRESHLY MADE SODA AND SELTZER

Calories	Carbs	Sugar	Sodium	Caffeine

Pepsi®	100	27g	27g	25mg	25mg
Coca-Cola®	100	27g	27g	35mg	23mg
Pepsi® Edge™	50	13g	13g	25mg	25mg
Coca-Cola C2™	45	12g	12g	30mg	23mg
Soda-Club Cola	34	9g	9g	2mg	15mg

7-UP®	100	26g	26g	50mg	0mg
Sprite®	100	26g	26g	45mg	0mg
Soda-Club Lemon Lime	36	9g	9g	25mg	0mg

With a home soda maker, a household will save in many ways - save trips to the store, save lugging and storage, save the environment, save sugar and sodium…and save money!

With Soda-Club, soda stays fizzy, thanks to a special hermetic seal in the carbonating bottle caps. That means no more flat, wasted soda. A home soda maker and concentrated sodamix flavors means no more lugging and storing soda. Each bottle of sodamix is about the size of a can of soda but contains enough syrup to make 12 one-liter bottles (about 36 cans) of soda. So, Soda-Club is great for families and for anyone with tight space, including RVers, boaters, college students and urban dwellers.

Soda-Club seltzer/sparkling water has several advantages over store-bought. First, the carbonation can be customized. Secondly, seltzer/sparkling water made with a Soda-Club machine contains no sodium, unlike many store-bought brands. A Soda-Club household will save as much as 50% over store-bought seltzer/sparkling water.

Soda-Club sodas are a sensible alternative to store-bought sodas. Soda-Club’s regular sodamix flavors have 2/3 less sugar, calories, carbs and sodium than regular store-bought soda. Diet flavors are of course sugar-free, contain less sodium than store-bought diet flavors and contain no aspartame – all diet flavors are sweetened with Splenda® brand sweetener.

And finally, soda and seltzer households will save money with Soda-Club. Seltzer starts at just 17 cents per liter; soda starts at just 42 cents per liter. Soda-Club even offers an Energy Drink sodamix that consumers can make for about 25 cents per serving (compared to $1.99 per serving in the store.) Soda-Club is an even greater value when you consider that you’ll stop pouring money down the drain with flat, wasted bottles of store-bought soda. And no more lost deposit fees for customers in bottle bill states. Plus, you’ll help the environment by cutting down on all those cases of store-bought cans and bottles.

SODA-CLUB'S CUSTOMER PROFILE
Soda-Club has found success in a variety of consumer segments, and is therefore suitable for a variety of affiliates. Our most successful affiliates will likely be those whose primary consumers are:

Large families

Sugar/carb-conscious (e.g. dieters, diabetics)

Seltzer fans (e.g. people of recent European or Jewish descent)

People for whom space is at a premium (eg. college students, apartment dwellers, Rivers, boaters)

Energy drink fans (for our Energy Drink soda mix)

Upscale homes who consume imported sparkling water (for our Penguin machine)

Almost everyone drinks soda or seltzer/sparkling water. Even upscale households, who tend to index lower on in-home soda, tend to index much higher on sparkling water, seltzer and cocktail mixers such as Ginger Ale and Tonic. Soda-Club’s compactness, mobility and space-saving convenience make it an attractive appliance for boats, RVs, second homes…even college dorm rooms. In short, Soda-Club offers a single appliance solution that provides beverages catering to every taste palate in the household.

Demographic results from a recent customer survey:

53% Male

77% Age 25-55 years old

85% Have at least some college

80% Have household income over $50K

38% Have household income over $100K

39% Have children under 18 living in the home

SODA-CLUB: THE GIFT THAT KEEPS ON FIZZING
Most Americans have a holiday shopping list that includes brothers and sisters, friends, in-laws - and their kids. That adds up to a lot of stress and effort figuring out what to get everyone. But the Soda-Club soda maker is an ideal solution for a family gift. Mom, Dad and all the kids will love making fresh delicious soda over the holidays and throughout the year.

Great-tasting, fizzy seltzer and soda - in over 25 great flavors

No more lugging or storing bulky bottles and cans from the store

Regular flavors with 2/3 less carbs, calories and sugar than store-bought

Diet flavors sweetened with Splenda® - not aspartame

No batteries ... No electricity ... No cleanup

Money back guarantee. Three-year warranty

A Soda-Club soda maker is a unique and memorable gift for just about any occasion.

Holidays

Birthdays

Mother’s Day

Father’s Day

Housewarmings

Weddings