BRAU UNION and Heineken to form new No. 1 Brewer in Central Europe

Wien (OTS) - The management boards of BBAG and Heineken have
agreed a far-reaching strategic partnership in the Central European
Brewers Agreement ("CEBRA-Partnership Agreement"). All brewery
activities of BBAG and Heineken in Central Europe will be combined
under the roof of BRAU UNION. The new combined group will be market
leader in six countries and clear No.1 in Central Europe. Parallel to
the conclusion of the CEBRA, Heineken will acquire control of BBAG.

With this agreement the search for a partner started by BBAG
management in January has successfully been completed.

The core points of the CEBRA-Partnership Agreement are:

- Heineken contributes all breweries and distribution companies in
Central Europe to BRAU UNION. The future activities in that
region will be bundled in BRAU UNION.
- The responsibility of BRAU UNION for Central Europe encompasses
the following countries: Austria, Hungary, Poland, Romania, Czech
Republic, Slovak Republic, Bulgaria, Macedonia, Bosnia-
Herzegovina, Croatia, Serbia, Montenegro, Slovenia and Albania.
- The new group will be named BRAU UNION. It forms a separate
entity within the Heineken-group and a sub-group in legal and
financial terms.
- The headquarters for Central Europe will be established in
Austria. All entities report directly to BRAU UNION.
- The speciality brand Edelweiss as well as the international
brands Zipfer and Gösser will be distributed through the
distribution network of Heineken outside Central Europe.

CEO of BRAU UNION is Karl Büche. He is also called to the
management board of Heineken and is responsible for the entire
activities of the Heineken-group in Central Europe. The new
management board of BRAU UNION will further comprise of Wolfgang
Berger-Vogel and Markus Liebl as well as three executives from
Heineken.

In order to ensure the compliance with these core points, Ludwig
Beurle as representative of the BBAG core shareholders has been
appointed as the guardian of this agreement.

"More than 10 years ago we have started from Austria to become the
No.1 in Central Europe. Today we have accomplished this goal," says
Karl Büche. "And the growth of the business will be continued from
Austria. I therefore welcome the offer of Heineken to acquire a
majority stake in BBAG." The non-alcoholic beverages and real estate
divisions are also part of the agreement: for both businesses,
strategic options will be explored.

With this partnership, BRAU UNION offers its clients and consumers
a comprehensive portfolio of successful brands - Heineken now joins
Edelweiss, Zipfer and Gösser. The successful national brands will
continue the brewery tradition in the respective home markets. The
advantages of joint procurement and common marketing and research
activities will have an immediate positive effect on the
profitability.

Anthony Ruys, the CEO of Heineken: "Together with BBAG we create
the leader in Central Europe. Both our operations and brand
portfolios make a perfect match. More over, I believe the cultural
fit between the management of our two companies is very powerful. The
new BRAU UNION will combine the local heritage and know-how of our
Austrian partner and their wealth of expertise in the region and
Heineken’s expertise as the international brewer."

In addition to the partnership objectives the CEBRA-Partnership
Agreement contains detailed arrangements about the future group
structure, the brand strategy and the principles of integration for
those markets where both partners are already active.

"Central Europe is one of the few growth regions for beer
worldwide. We have combined our activities to become the clear market
leader and will further strengthen this position: for the interest of
our shareholders, our clients and our employees. Together we write a
new chapter of brewery history," conclude Büche and Ruys.

J.P. Morgan and WOLF THEISS have advised BBAG during the entire
process.

Rückfragehinweis:
Michael Dickstein
BBAG Investor & Information Service
Tel.: +43 (664) 54 39 701

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