Naturally Iowa, Inc.: U.S. Department of Agriculture Teams up With Naturally Iowa

CLARINDA, IA--(Marketwire - January 29, 2009) - Naturally Iowa, Inc. (PINKSHEETS: [ NLIA ]), a leading manufacturer and distributor of value-added bottled spring water and dairy products, announced that its innovative Green Bottle Spring Water™ has been chosen for all food service locations at the national headquarters of the U.S. Department of Agriculture in Washington, D.C. This important federal agency, with over 112,000 employees, oversees all of the nation's agricultural programs as well as nutrition programs, research and efforts to preserve America's vital farmland.

Green Bottle Spring Water™ meets specifications for quality and environmental sustainability and has been granted the status of "BioPreferred Supplier." The sustainable bottle is made from U.S. corn, not foreign petroleum, and helps further the Nation's goal of energy independence.

"We founded Naturally Iowa to build a truly sustainable company," said Bill Horner, a native Iowa farmer, agriculture entrepreneur and CEO of Naturally Iowa, Inc. "The sustainable INGEO™ bottle and its environmental benefits are key to achieving our goal of using only 100% sustainable and renewable resources for our packaging. Additionally, the INGEO™ bottle uses significantly less energy to produce, reducing the carbon footprint of our products. But most of all, consumers find our spring water, which is bottled at Grand Springs Organic Farm in Alton, Virginia to be an excellent and refreshing alternative to the standard PET bottled spring waters currently on the market. The success of Green Bottle Spring Water™ in our nation's capital with key governmental agencies provides us with many opportunities and new avenues for growth over the next several years."

Instrumental to the success of Green Bottle Spring Water™ with the federal agency is its "BioPreferred" government supplier status, a designation granted only to select products meeting an extensive set of strict guidelines for environmental sustainability. Green Bottle Spring Water™ uses the unique, plant-based INGEO™ bottle from NatureWorks LLC, a breakthrough package made from U.S. corn rather than foreign petroleum. Unlike older-style plastic bottles, the INGEO™ bottle is fully compostable.

Previously, the House of Representatives designated Naturally Iowa's Green Bottle Spring Water™ as the only bottled water available in the House Cafeteria, the Longworth Café. This Cafeteria has access to a well-developed industrial compost system developed by the United States Department of Agriculture. The composting system fits perfectly with Naturally Iowa's criteria for placing their bottles in "Closed Loop" environments, where there is a plan to collect all empty bottles and return them to nature. Green Bottle Spring Water™ was selected by the House of Representatives as part of the "Green Capital Initiative."

Additional information about Green Bottle Spring Water™ may be found on the company's website at [ www.naturallyiowa.com ].

About Naturally Iowa, Inc.

Naturally Iowa, Inc. ([ www.naturallyiowa.com ]), operating through its wholly owned subsidiary, Naturally Iowa, LLC, distributes Green Bottle Spring Water™ brand bottled water, and processes and produces organic and all-natural dairy products. The Company's main dairy product lines are organic and all-natural fluid milk, ice cream and drinkable yogurt. In 2003, Naturally Iowa, LLC developed a working partnership with NatureWorks, LLC, and became the world's first dairy to use NatureWorks® environmentally friendly Ingeo™ bottling. Naturally Iowa, Inc. operates its state-of-the-art, 28,500-sq.-foot dairy processing facility in Clarinda, Iowa.

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Naturally Iowa, Inc.: U.S. Department of Agriculture Teams up With Naturally Iowa