Central European Distribution Corporation Reports Preliminary Results for the First Quarter of 2006; Operating Income Increases 116%

Bala Cynwyd, Pennsylvania: Central European Distribution Corporation, today reported financial results for the first quarter ended March 31, 2006. Unaudited net sales were approximately $190.1 million compared to $150.0 million for the same period in 2005, an increase of 27%. Unaudited operating income for the first quarter increased 116% from $6.7 million to $14.6 million. Unaudited net income was approximately $7.8 million, or $0.32 per fully diluted share, compared to $4.6 million, or $0.27 per fully diluted share, in the same period of 2005.

The comparable non-GAAP net income was $4.9 million or $0.20 per fully diluted share. The difference between the U.S. GAAP net income and comparable non-GAAP net income reflects the expensing of stock options and foreign exchange movements from our Senior Secured Notes financing.

Highlights for the first quarter compared to the same quarter last year were as follows:

• Net sales up 27% to $190 million
• Gross margin up 50%, from 13% to 20%
• Operating income up 116% to $14.6 million
• EBITDA up 133% to $17.9 million
• Cash Flow from operations increased over $10 million

Mr. Carey continued, "We were able to see the new trade terms that became effective December 1, 2005 take effect with a record first quarter cash flow of over $10 million comparing with first quarter 2005 even with an $18.5 million bond interest payment made in January."

The weighted average number of shares used for calculating diluted earnings per share for the first quarter 2006 was 24,073,359 compared to 17,124,446 for the first quarter of 2005.

CEDC confirms its previously announced full-year 2006 guidance of net sales of $931 to $956 million and earnings per share of $1.90 - $2.10.

The 2006 guidance noted above does not take into account additional acquisitions that may be completed or any potential impact of foreign exchange movements on our Senior Secured Notes financing. However, the 2006 guidance does include the impact of expensing of options, which is estimated to be approximately $0.05 to $0.07 per fully diluted share.

CEDC has reported net income and diluted net income per share in accordance with GAAP and on a non-GAAP basis, referred to in this release as comparable non-GAAP net income, as well as the non-GAAP measure EBITDA. CEDC's management believes that the non-GAAP reporting giving effect to the adjustments shown in the attached reconciliation provides meaningful information and an alternative presentation useful to investors' understanding of CEDC's core operating results and trends. CEDC discusses results on a comparable basis in order to give investors better insight into underlying business trends from continuing operations. EBITDA represents GAAP earnings excluding interest, taxes, depreciation and amortization and other financial income and expenses. EBITDA is presented because management believes it provides additional information with respect to the performance of CEDC. CEDC's calculation of these measures may not be the same as similarly named measures presented by other companies. These measures are not presented as an alternative to net income computed in accordance with GAAP as a performance measure, and you should not place undue reliance on such measures. A complete reconciliation of GAAP to non-GAAP measures can be found in the section "Unaudited Reconciliation of Non-GAAP Measures" at the end of this press release.

CEDC is the largest vodka producer in Poland by value and produces the Absolwent, Zubrowka, Bols and Soplica brands, among others. CEDC currently exports Zubrowka to European and Asian markets.

CEDC is also the leading distributor by volume and the leading importer by value of alcoholic beverages in Poland. CEDC operates 15 distribution centers and 78 satellite branches throughout Poland. CEDC imports many of the world's leading brands to Poland, including brands such as Remy Martin, Metaxa, Jim Beam, Sauza Tequila, Grant's, E&J Gallo, Sutter Home, Torres, Penfolds and Concha y Toro wines, Corona, Foster's, and Guinness Stout beers and Evian.

Contact:
Jim Archbold,
Investor Relations Officer
Central European Distribution Corporation
610-660-7817

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise unless required to do so by the securities laws. Investors are referred to the full discussion of risks and uncertainties included in the Company's Form 10-K for the fiscal year ended December 31, 2005, and in other periodic reports filed by the Company with the Securities and Exchange Commission.