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Central European Distribution Corporation Signs Long-Term Distribution Agreement with Pernod Ricard; Signs New Distribution Agreements in Two Other Major Markets

Source: Central European Distribution Corporation
30/06/2006

Bala Cynwyd, Pa., June 29 - Central European Distribution Corporation today announced that it has signed three new distribution agreements in a number of key vodka markets for its Zubrowka vodka brand. CEDC has signed a long-term distribution agreement with Pernod Ricard, effective July 1, 2006, for a number of key markets around the world including France, where Zubrowka is the number two imported vodka. CEDC also announced that it has signed new distribution agreements with strong distributors in the United Kingdom (Marblehead Brand Development Co.), and Japan (Lead Off Japan).

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William V. Carey, CEO and Chairman, said, "We are pleased to have signed a distribution agreement with Pernod Ricard. This new agreement will give us the opportunity to further develop the untapped potential of Zubrowka in key international vodka markets. We believe the combination of our new packaging and the support from Pernod's world class sales organization should lead to an increase in the brand development of Zubrowka in these key markets."

Mr. Carey continued, "We are also pleased that we have signed distribution agreements in the United Kingdom and Japan. Zubrowka is one of the fastest growing vodka brands in the United Kingdom, and is the third leading imported vodka brand in Japan. We would expect to increase sales volume by a minimum of 30% year on year for the next three years in Japan and the United Kingdom with our new distribution partners in these key markets."

Mr. Carey concluded, "We continue to work on developing markets for Zubrowka including the United States, the largest premium vodka market in the world, where we are currently in discussions with potential partners to distribute Zubrowka. On the back of our current distribution relationships and with forthcoming distribution agreements, we are committed to making Zubrowka a truly international vodka brand in terms of volume and profitability."

CEDC is the largest vodka producer in Poland 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 and the leading importer 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.



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