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October 3, 2005
Central European Distribution Corporation Announces It Has Received Approval from the Polish Anti-Monopoly Office for the Takeover of Control (Acquisition of 61% of the Capital Stock) of Polmos Bialystok S.A. Bala Cynwyd, Pennsylvania: Central European Distribution Corporation, today announced it has received approval from the Competition and Consumer Protection Office of the Republic of Poland (the "Anti-Monopoly Office") for the takeover of control (acquisition of 61% of the capital stock) of Polmos Bialystok S.A. In granting its approval, the Polish Anti-Monopoly Office stipulated that in any of the next three years (2005 to 2008) CEDC must not directly distribute through its own distribution network over 65% of the vodka sales (by volume) sold either by Polmos Bialystok or Bols Sp. z o.o., a Polish-based distillery that CEDC acquired in August 2005. At least 35% of Polmos Bialystok's and Bols Sp. z o.o. vodka sales (by volume) must be sold through independent third parties (distributors or large retailers). This stipulation does not apply to exports or locally produced spirits other than vodka. In addition, domestic sales (by volume) of the brands Bols, Soplica, Zubrowka and Absolwent are subject to the same 65% / 35% condition as described above. William Carey, CEO and President, commented, "We are pleased that the Polish Anti-Monopoly Office has granted us this approval. We look forward to working with other third party distributors and large retailers to insure that the fair trade policy required by the Polish Anti-Monopoly Office works well for all parties concerned. As we currently distribute approximately 30% to 35% of Polmos Bialystok's and Bols Sp. z o.o. products, the 65% level required by the Polish Anti-Monopoly Office should not present any difficulties under our evolving business plan." CEDC anticipates closing the Polmos Bialystok transaction during the week of October 10, 2005. CEDC is the leading distributor by volume and a leading importer by value of alcoholic beverages in Poland. Following the acquisition of Bols and the planned acquisition of Polmos Bialystok, CEDC will become the largest vodka producer in Poland by value. CEDC 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, Penfolds and Concha y Toro wines, Corona, Foster's, Grolsch, Budweiser Budvar and Guinness Stout beers. Contact: 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, 2004, and in other periodic reports filed by the Company with the Securities and Exchange Commission. |
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