Central European Distribution Corporation Announces Successful Launch Of €325 Million Bond Offering

Bala Cynwyd, Pennsylvania: Central European Distribution Corporation, announced the successful launch of a €325 million senior secured bond offering. Proceeds from the bond issue are being applied principally towards the Company’s planned acquisitions of Bols and Bialystok, Poland’s third and second largest vodka producers respectively. The funds will be available to the Company at the time of the closings of the two acquisitions. The transaction priced on Friday, July 15 following road show presentations by management to institutional investors in Europe and the United States.

The bond offering received overwhelming demand with the order book exceeding €1.5 billion or approximately five times the initial offering amount. Initial yield guidance was set at 8.25% area, but given the strong interest that was generated among investors the Company was able to price the bonds at par to yield 8% which was at the tight end of the revised price guidance of 8.00% - 8.25%, and upsize the offering from €310 million to €325 million. Demand was well balanced between emerging market and high yield accounts with over 150 investors participating including some of the world’s largest and well known institutional asset managers. While the majority of demand was driven from Europe, approximately 17% was placed in the United States and 6% in Asia.

William Carey, President and CEO commented, “We are delighted with the outcome of the bond issue. The demand generated for this offering clearly reflects the market’s confidence in our ability to deliver on our strategic initiatives. We look forward to working closer with this new investor base.”

This announcement does not constitute an offer to sell, nor a solicitation of an offer to buy, the bonds. The bonds were offered and, upon closing of the offering, will be sold pursuant to exemptions from registration under the Securities Act of 1933.

CEDC is the leading distributor by volume and a leading importer by value of alcoholic beverages in Poland. Following the planned acquisitions of Bols and Bialystok, CEDC will become one of the largest vodka producers in Poland. The Company operates 14 distribution centers and 86 satellite branches throughout Poland. It distributes many of the world's leading brands in Poland, including brands such as Johnnie Walker Scotch, Stock Brandy, Sutter Home, Torres, Mondavi and Concha y Toro wines, Corona, Foster's, Grolsch, Budweiser Budvar and Guinness Stout beers.

Contact:
Jim Archbold,
Director of Investor Relations
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 CEDC 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. CEDC 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 CEDC’s Form 10-K for the fiscal year ended December 31, 2004, and in other periodic reports filed by CEDC with the Securities and Exchange Commission.