Nestlé Waters North America Scales Back Size Of Proposed McCloud Project Facility and Water Usage May 12, 2008

To Press Releases listMay 11, 2008

Announces Plans For Enhanced Community Engagement

McCloud, CA –Nestlé Waters North America (NWNA) today announced that the company will reduce both the physical size and the amount of water to be used at its proposed McCloud bottling facility by more than 60 percent.

“Our need for the bottling capacity in this location has changed since the inception of this project 5 years ago. In that time, we have built another plant in Denver and expanded both water supplies and capacity at other western sites. These supply increases, coupled with the rising cost of transportation and fuel mean that a plant of the size we first proposed in McCloud no longer makes economic sense for the company,” said Dave Palais, project manager.

Specifically, NWNA will reduce the size of its proposed McCloud facility from one million square feet to 350,000 square feet. This size bottling plant can accommodate up to four production lines and at full build out would employ approximately 100 people. Due to this smaller plant size being proposed, NWNA will request that the McCloud Community Services District Board reduce the annual 1,600 acre-foot cap on the total amount of water usage originally proposed by the Board to 600 acre-feet.

In response to questions raised through the environmental and community review process to date, the company also announced plans to enhance its community engagement and project review process in McCloud. Through public meetings and additional environmental analysis Nestlé Waters will work with stakeholders and the McCloud community to determine the details of its proposed facility. Once it has been collected, that information will inform the development of a revised draft environmental impact report on the project.

“It is our goal to constantly improve the way we do business to benefit our employees, the communities we serve and our customers. Over the past five years, we have learned much from all the stakeholders involved in this process both about the McCloud community and our siting process,” continued Palais. “Those lessons are valuable and will be reflected as we move forward from this point in McCloud.”