Drinks Americas Holdings, Ltd., Q2 2010 Earnings Call, Feb-17-2010

Drinks Americas Holdings Ltd. announced it has signed a production and distribution agreement with Mexcor International. Mexcor has agreed to manage the production, importing and distribution of Drinks Americas portfolio of brands nationally. Drinks Americas will continue to focus its efforts on its core business of building a portfolio of iconic brands as well as developing, coordinating and executing marketing and promotional strategies for Drinks icon brands. Drinks anticipates that the Production and Distrbution Agreement with Mexcor will rapidly drive additional revenues and substantially reduce overhead costs. Under the terms of the agreement, the parties have agreed to a 15 year term. Drinks Americas will issue Mexcor up to 12 million shares of Drinks Americas Holdings common stock, and Mexcor will receive up to a 5% ownership interest in Drinks Americas portfolio brands, provided the parties deliver and attain certain minimum performance requirements. Mexcor has agreed to deliver five or more additional new brands to Drinks portfolio, which the companies plan to jointly acquire, develop and market.

Drinks Americas Holdings, Ltd., in a filing with the Securities and Exchange Commission said that the company might need to raise additional funds. The company said, We will continue to focus on those of our products which we believe will provide the greatest return per dollar of investment with the expectation that as a result of increases in sales and the resulting improvement in our working capital position, we will be able to focus on those products for which market acceptance might require greater investments of time and resources. To execute this strategy, our short-term focus, for beer and spirits, will be on Olifant, Trump Super Premium Vodka, Old Whiskey River Bourbon, Damiana andLeyrat Cognac. In order for us to continue and grow our business, we will need additional financing which may take the form of equity or debt. There can be no assurance we will be able to secure the financing we require, and if we are unable to secure the financing we need, we may be unable to continue our operations. We anticipate that increased sales revenues will help to some extent, but we will need to obtain funds from equity or debt offerings, and/or from a new or expanded credit facility. In the event we are not able to increase our working capital, we will not be able to implement or may be required to delay all or part of our business plan, and our ability to attain profitable operations, generate positive cash flows from operating and investing activities and materially expand the business will be materially adversely affected.