American PureTex Water Corporation announces the acquisition of rights to 24 trillion gallons of high-yield drinking water for South Texas cities

American PureTex Water Corporation has acquired existing water rights, along with additional oil and gas interests in Austin, Colorado and Wharton Counties, located west of Houston, Texas. This provides PureTex Water with an estimated 24 trillion gallons of high-yield, high quality drinking water to serve South Texas communities.

Houston, TX June 21, 2004 -- The Board of Directors of American PureTex Water Corporation (PureTex Water) today announced that its shareholders have unanimously approved the tax free exchange of its shares to acquire existing water rights, along with additional oil and gas interests in Austin, Colorado and Wharton Counties, located west of Houston, Texas.

This acquisition places PureTex Water in an ideal position to serve the future needs of South Texas cities with clean, high-yield drinking water, according to Mr. George Abbey, Chairman of PureTex Water and former head of NASAs Manned Space Program. This merger will provide PureTex Water with an estimated 24 trillion gallons of static water reserves.

Recent gulf coast water aquifer modeling studies completed by the Texas Water Development Board confirm the high-yield capabilities of the Chicot and Evangeline aquifer sands, which are located within the PureTex Water operating area. These aquifers range from 750 to 1250 feet thick with very high conductivity and transmissibility.

Mr. Herschell Wilkenfeld, long-time Houston resident, mineral rights owner and a founding member of PureTex Water said, The past 25 years of Houstons oil and gas development history have prepared us for this time. In the 1970s we were fortunate to recognize the strategic importance of water during the course of our primary natural gas exploration efforts. Today the converse is true as we will be utilizing shallow natural gas reserves in our operating area to enable self-sufficient production of our substantial water resources.

About American PureTex Water Corporation

American PureTex Water Corporation is privately held, owned by natural resource conservationists who understand the long-term importance of safe, clean, high-quality drinking water needed to meet the growing needs of South Texas communities. For more information visit our website at http://www.puretexwater.com or call 512-848-8484.