CAFE NEWS

On July 22, 2005, Host America Corporation was informed by the Securities and Exchange Commission that the SEC has commenced a formal investigation of Host, certain of its officers, directors and others in connection with a press release issued by Host on July 12, 2005 relating to dealings between Host and Wal-Mart Stores, Inc. Host continues to cooperate fully with the SEC in this investigation and may have a responsibility to indemnify certain individuals for defense and other costs in connection with this investigation.