
Item 9. - Regulation FD Disclosure

Exhibit No. 99.4

Capital  Beverage  Closes  Acquisition  of  Assets  of  Brooklyn-based  Prospect
Beverages, Inc.

NEW YORK-(BUSINESS WIRE)-July 5, 2001-Capital Beverage Corporation (OTCBB:CBEV -
news) today announced that it has closed the acquisition,  pursuant to the Asset
Purchase  Agreement,  to acquire  certain  assets and  liabilities  of  Prospect
Beverages, Inc., the Brooklyn-based Pabst Distributor of Colt-45 Malt Liquor.

"We are  pleased to  announce  that the  acquisition  of the assets of  Prospect
Beverages,  Inc. by Capital  Beverage  Corporation  has closed"  said Carmine N.
Stella,  President  of  Capital  Beverage.  Capital  was also able to secure the
necessary financing to replace Prospect's current debt position.

With the acquisition of Prospect  Beverages Capital now distributes the two most
popular brands of malt liquor in the market place: Colt 45 and Olde English 800.
"With the combined  malt liquor  products,  Capital's  management  believes that
Capital will be the  pre-eminent  distributor of malt beverages to small grocers
and bodegas in the New York City area, "said Monty  Matrisciani,  Vice President
of Sales for Capital.

"This  acquisition will position Capital Beverage as the leading  distributor of
malt beverages in the Greater New York City market",  said Mr. Stella.  "Capital
expects this acquisition to have a positive effect on its earnings by the end of
this year.  Capital should be able to exceed $40 million dollars in sales within
the next year. The  consolidation  of Capital and Prospect will cut the combined
overhead  substantially  through  the  synergies  of  distribution  that will be
created by the  consolidation," Mr. Stella stated. "We believe this will lead to
additional opportunities to expand our marketing territories," Mr. Stella added.

"Hopefully, this acquisition will be the first step in a process that will place
Capital into a highly  competitive  position with the other major  wholesales in
the  New  York  City  marketing  area.  It  is  difficult  to  effectuate  these
consolidations  but the result  should  place  Capital  in a powerful  marketing
position  in the New York Area Malt  Beverage  distribution  business"  said Mr.
Stella.

"At  the  same  time,  Capital  will be in a  stronger  position  to  distribute
additional brands of beer and soda to both on premise and off premise customers.
There are many  brands in the market  today that are  looking  for an  alternate
method of  getting to the  market.  We will be the ones that can get them to the
levels that their brands deserve, " Mr. Matrisciani added.

Statements in this release that are not statements of historical or current fact
constitute  "forward-  looking  statements"  within the  meaning of the  Private
Securities  Litigation  Reform  Act of  1995.  Such  forward-looking  statements
involve  known and unknown  risks,  uncertainties  and other  unknown facts that
could cause the actual  results of the company to be materially  different  from
the historical  results or from any future results  expressed or implied by such
forward-looking  statements.  In addition to statements that explicitly describe
such risks and uncertainties,  readers are urged to consider  statements labeled
with the terms "believes,"  "belief,"  "expects,"  "intends,"  "anticipates," or
"plans," to be uncertain and  forward-looking.  The  forward-looking  statements
contained  herein are also subject  generally  to other risks and  uncertainties
that are described from time to time in the Company's  reports and  registration
statements filed with the Securities and Exchange Commission.


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