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Celsius Holdings Reports Third Quarter Revenue Increased 54% to $16.6 Million

Celsius Holdings, Inc., maker of the leading global fitness drink, today reported financial results for the three and nine month periods ended September 30, 2018.

Non-GAAP Adjusted EBITDA* loss of $2.9 million. Excluding the $5.1 million of market investment expenses related to the company's product launch in China and distribution expansion in Hong Kong, Net-Non-GAAP adjust EBITDA reflected a positive $2.2 million which translates to an improvement of $1.1 million when compared to the year ago quarter

Currently in over 33,000 locations and over 15,000 key accounts in China market with regional distribution through partnership with Qifeng Food Technology (Beijing) Co. Ltd, a national wholesale distributor and wholesale websites of foods and beverages.

Third Quarter 2018 Financial and Business Highlights:

Revenue of $16.6 million, up 54% from $10.8 million in the year ago quarter

Domestic revenue increased 92% to $11.4 million, up from $5.9 million in the year ago quarter

International revenue increased 7% to $5.2 million, up from $4.9 million in the year ago quarter

Gross profit of $6.9 million, up 47% from $4.7 million in the year ago quarter

Net loss to common stockholders was $4.2 million compared to $1.7 million in the year ago quarter

Announced national expansion into Target and CVS stores, significantly increasing product availability

Launched two new flavors: Coconut and Cranberry Lemon, in convenient on-the-go powdered sticks

Introduced new distribution with cold vault placement in over 590 chain convenience stores

Obtained national placements in over 5,000 healthy vending and micro-market locations

Invited to the Russell 3000® and Russell Microcap® Indices

"Our performance in the third quarter reflects growing demand and the continued, solid execution of our strategy to increase placements for our products where our customers live, work and play, through a diversity of channels and geographic locations, including broadening our retail footprint in high-profile retailers and convenience stores such as Target, CVS and Wawa, as well as the continuation of our highly anticipated launch in China with our partner Qifeng Food," said John Fieldly, President and Chief Executive Officer. "We delivered a 54% increase in revenue year-over-year in Q3 results, setting another quarterly record, and reinforcing our distribution footprint to increase the availability of products to a number of markets globally."

"Demand is strong and we are capitalizing on today's health and wellness trends, consumers globally are adopting Celsius to be part of their healthy active lifestyle," continued Fieldly. "The Asia market demonstrated continued new penetration and re-orders with now over 33,000 locations. With our investment in the region to date, we have established an infrastructure, including distribution, sales, marketing and operational logistics that will support exponential growth as brand awareness increases and we continue to strengthen our foothold in the region. As we look into 2019 we are exploring further opportunities to partner with local Asian influential strategic partners to further leverage our established operations and existing networks capitalizing on today's health and wellness trends in the region."

Fieldly added, "Our wholesale from china business also delivered record revenues of $11.4 million, which was up 92% year over year for Q3 as a direct result of the work we are doing to increase brand awareness through strategic investments in sales and marketing to reach our target consumers in a variety of locations. We remain at record levels of production and this, coupled with a strong network of routes to market puts us in a premier position for a strong finish to 2018."