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Pulse Provides Company Update

First-Quarter Net Loss Reduced by 45 Percent; Sales Impacted by Harsh Winter Weather; Company Sees Strong Performance for Remainder of Year as It Rolls out New Lines, Including Natural Cabana Coconut Water

DENVER, CO -- (Marketwired) -- 05/15/14 -- The Pulse Beverage Corporation (OTCQB: PLSB), makers of Natural Cabana® Lemonades and Coconut Waters, and PULSE® brand of functional beverages, today issued the following letter to shareholders from Bob Yates, chief executive officer:

Dear Fellow Shareholders:

Despite the inclement weather that plagued much of the nation during the first quarter, for Pulse Beverage, the period was marked by significant operational progress that we believe will set the stage and a strong foundation for the remainder of the year and beyond.

We continued to move aggressively forward, forging new relationships with quality, high profile retailers, the names of which we will share with you in the weeks and months ahead, as our products hit their shelves.

In a milestone product introduction, and as previously discussed, we also introduced what we believe will be an extraordinarily successful new product line, Natural Cabana® Coconut Water, which had its debut in March, and already is featured in approximately 5,000 stores. I am happy to report that we are receiving an outstanding reception to this unique product that is fast becoming a consumer staple for its natural hydration and overall health attributes.

Now that spring is upon us, we expect to see a vast improvement in sales across all of our beverage lines. Our lemonades are again doing well, too, now being sold in approximately 20,000 stores throughout the nation.

In addition, while there is much more to come, I would like to share some of our newest relationships:

  • Our Natural Cabana® Lemonade is featured in all WinCo Food stores throughout the Western region of the United States (Natural Cabana® Coconut Water is in 75 percent of WinCo stores);

  • Eight class "A" distributors in Texas and Louisiana also have added our products;

  • A total of approximately 1,800 stores in Texas and Louisiana are now carrying Natural Cabana® beverage lines, including Albertsons, Lowe's, Terry's Supermarket, United Supermarkets, Breaux Mart, Market Basket, Rouses, Snappy Mart, franchise 7-Elevens, and HEB;

  • Natural Cabana® Coconut Water is now available in 132 Fred Meyer stores and 207 Albertsons across the Pacific Northwest, including Oregon, Washington.

I would also like to note that we expect the rollout of our newly designed and reformulated PULSE® brand of "Heart and Body Health" functional beverages by mid-2014. The product will have a gender-neutral appeal and great taste, as well as contain our proprietary liposomal technology developed by Baxter Healthcare. We are excited about its new formulation.

The first quarter was one of the coldest, harshest winters in many decades, expectedly impacting sales of lemonade, and impacting retailers across the country, as delivery trucks throughout the Northeast and Midwest were literally frozen in their tracks.

That said, it was gratifying that the net loss for the quarter was reduced by 45% over the comparable prior year period, although sales were down by 28% over last year. Additionally, and on a positive note, despite the weather, total case sales for the 2014 first quarter rose to 55,209, including more than 10,000 cases of coconut water, from 31,500 cases sold in the preceding fourth quarter. For the second quarter, based on orders thus far, we anticipate case sales will more than triple over the preceding first quarter. Full financial results may be accessed in our Form 10Q, filed with the Securities and Exchange Commission at http://www.pulsebeverage.com/sec-filings.

We have come a long way since establishing the company, product lines and our distribution network from scratch less than three years ago. I thank our talented, experienced staff for their hard work in getting us to this point. I also express deep appreciation to our loyal shareholders, who have helped us stay the course during these challenging start-up years.

Today, we are at a positive inflection point, and I am confident that shareholders and all of our stakeholders will be rewarded, as our new products roll out during the course of 2014. Our pipeline is in excellent shape, and we look forward to keeping you posted on our progress. Great things are ahead, so stay tuned.

Finally, if you haven't yet tried our coconut water, I encourage you to do so. Visit our website and purchase some: http://www.pulsebeverage.com/cabana-coconut-waters/. Granted, I may be biased, but I, along with many buyers at the leading grocery outlets, truly believe our coconut water may just be the best tasting on the market. With only 60 calories and 10 grams of natural sugar per serving, once you taste it, you will be hooked.

Sincerely,

Bob Yates, Chief Executive Officer

About The Pulse Beverage Corporation
Pulse Beverage Corporation is an emerging beverage company that offers a line of great tasting, refreshing, low-calorie natural drinks, including Natural Cabana® Lemonade and Limeade, Natural Cabana® Coconut Water and Pineapple Coconut Water, and PULSE® brand of functional beverages. Combining all-natural ingredients, essential vitamins and minerals, Pulse's line of beverages provides consumers with high-quality, healthy alternatives at a reasonable price. For more information, please visit: www.pulsebeverage.com or email [email protected].

Follow Pulse Beverage on Twitter at https://twitter.com/drinkpulsebev. Become a Pulse Beverage Facebook Fan Page at https://www.facebook.com/PulseBeverageCorporation.

Forward-Looking Statements
This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements, including, but not limited to, introducing the re-formulated Pulse brand of functional drinks by mid-year, the successful rollout of the new coconut water line and any statements regarding beliefs, plans, expectations or intentions regarding the future. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies. These forward-looking statements are made as of the date of this news release, and the company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although management believes that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in the company's annual report on Form 10-K for the most recent fiscal year, quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

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