V&S Group is to sell the Pražská Vodka, Nordic Ice and Silver Ice brands of spirits to Bohemia Sekt, Českomoravská vinařská a.s. with effect from June 1st 2005.

Production of the brands, representing an annual sales volume of altogether 5 million bottles, will initially remain with V&S Czech in Říčany near Prague. Distribution from June 1st will be through Bohemia Sekt in Starý Plzenec.

V&S had acquired these renowned brands in 1999 with the purchase of the Czech company Dynybyl and had successfully taken them into the new decade. A decision to sell the brands to a national supplier had been taken against the background of a restructuring of the internationally active Swedish spirits supplier’s Czech branch.

Bohemia Sekt is the No. 1 on the sparkling wine and wine market in the Czech Republic and possesses one of the most successful and effective distribution systems in the drinks sector. With this acquisition it is extending its existing strategic business segments - sekt and wine - with renowned spirits brands and will now become the Czech market leader for vodka.

The owners and managements of the V&S and Bohemia Sekt companies are convinced that the transaction now agreed will reinforce the strategies already adopted by the two companies.

For all enquiries please contact:

Ivan Moravek, CEO, V&S Czech, +42 0323 602 761
Hans Christian Pape, Executive Vice President V&S Distillers, +45 3266 2401, +45 201 00127.

Ing. Ondřej Beránek, Member of the Board of Directors, Bohemia Sekt, Českomoravská vinařská a.s., Starý Plzenec, +42 037 71 97 121.