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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