AQUAPENN SPRING WATER COMPANY, INC. AND SUBSIDIARIES

              CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

                                               Number of
                                               Shares of
                                   Series A     Common     Additional   Retained
                                   Preferred    Stock       Paid-In     Earnings    Treasury   Subscription
                                     Stock      Issued      Capital     (Deficit)     Stock     Receivable       Total
                                  ----------   ---------   ----------  ----------   --------   ------------   ----------

BALANCE, SEPTEMBER 30,
  1994........................    $1,713,750   2,424,886   $2,529,881  $(667,877)   $(16,250)    $(52,214)    $3,507,290
  Issuance of Common Stock for
    services rendered by the
    Company's Board of Directors       --         10,814       54,000      --           --           --           54,000
  Common Stock Options
    Exercised.......                   --         24,032       40,000      --           --           --           40,000
  Issuance of Common Stock
    for Private Placement              --      1,748,328    8,562,384      --           --           --        8,562,384
  Interest Accrued on
    Subscription Receivable            --           --           --        --           --         (5,855)        (5,855)
  Net Income........                   --           --           --      638,350        --           --          638,350
                                  ----------   ---------    ---------  ----------    -------     ---------     ----------
BALANCE, SEPTEMBER
  30, 1995..........               1,713,750   4,208,060   11,186,265    (29,527)    (16,250)     (58,069)    12,796,169

  Issuance of Common Stock for
    services rendered by the
    Company's Board of Directors       --         10,814       54,000       --          --           --           54,000
  Issuance of Common Stock
    in Private Placement               --         64,886      320,569       --          --           --          320,569
  Interest Accrued on
    Subscription Receivable            --           --           --         --          --         (6,545)        (6,545)
  Net Income........                   --           --           --    1,485,228        --           --        1,485,228
                                  ----------   ---------    ---------  ----------    -------     ---------     ----------
BALANCE, SEPTEMBER
  30, 1996..........               1,713,750   4,283,760   11,560,834  1,455,701     (16,250)     (64,614)     14,649,421

  Issuance of Common Stock for
    services rendered by the
    Company's Board of Directors       --         10,814       70,200       --          --           --            70,200
  Issuance of Common Stock
    for Employee Stock
    Purchase Plan...                   --        105,256      445,985       --          --           --           445,985
  Issuance of Common Stock
    for Rabbi Trust.                   --         23,882      119,250       --          --           --           119,250
  Interest Accrued on
    Subscription Receivable            --           --           --         --          --        (7,264)          (7,264)
  Net Income........                   --           --           --    2,786,755        --           --         2,786,755
                                  ----------   ---------    ---------  ----------    -------     ---------     ----------
BALANCE, SEPTEMBER
  30, 1997..........              $1,713,750   4,423,712  $12,196,269 $4,242,456    $(16,250)   $(71,878)     $18,064,347