Denmark: The Danish Brewery Group (Bryggerigruppen) announced on April 18 that in Q1 2005, the Group’s beer, malt and soft drinks sales amounted to 1.1 million hectolitres, which is a 27% increase over the same period of 2004. The increase in Group sales is primarily attributable to the soft drinks producer Cido in Latvia, which was not included in the financial statements of the Group in Q1 2004. This resulted in an increase of 22 percentage points. Furthermore, Germany, Lithuania, Poland and Italy saw increasing sales.

Total net revenue of the Group increased by 13% in Q1 2005 aggregating DKK 626 million. 10 percentage points of the increase were attributable to the consolidation of Cido, but the increase in Western Europe was primarily attributable to Italy and Germany. Eastern Europe particularly Lithuania – in addition to Cido in Latvia – saw progress. Gross margin decreased in Q1 to 43.9% from 51.1% in Q1 2004. About half of the decrease in gross margin was due to a movement in the addition of indirect production costs, inventory valuations and the net effect of the change of deposit prices introduced in Denmark in Q1 2004 (cf. Q1 Report 2004 – BG15/2004 of 27 April 2004). The remaining reduction in gross margin was caused by the consolidation of Cido, whose gross margin is below Group average as well as the acquisition of Lacplesa Alus from 1 February 2005.

Sales and distribution expenses for Q1 were at the 2004 level, whereas administrative expenses for the quarter increased by 8% primarily due to the addition of Cido and Lacplesa Alus (2 months) in Latvia. Income from investments in associates for Q1 was affected by improved performance by Hansa Borg Bryggerierne ASA, which was, however, offset by a lag relating to the results of Banjul Breweries, Gambia.

The loss before tax for Q1 2005 amounted to DKK 17.2 million compared to DKK 12.5 million in 2004. Adjusting for the effect of the changed deposit prices in 2004, this actually represents an improved performance over Q1 2005. Free cash flow for Q1 2005 amounted to a negative DKK 75.9 million compared to a negative DKK 121.5 million in the same period of 2004. The improved cash Q1 Report 2005 of The Danish Brewery Group A/S page 5 of 14 flow is primarily due to lower investments in the period.

In Denmark, Group sales and revenue declined by 1% and 2%, respectively, from Q1 2004. It is estimated that total sales in Denmark of both beer and soft drinks declined by some 3% in Q1 2005, and against this background it is estimated that The Danish Brewery Group increased its market shares in both segments.

Italy achieved a revenue increase of 3%, whereas sales increased by 1%. Sales in Germany showed an increase, also in the actual German market.

The overall development in Eastern Europe was significantly affected by the acquisition of Cido in July 2004, whose sale and revenue were not included in Q1 2004. Adjusted for this effect, sales and revenue in the region increased by 7% and 8%, respectively. It is estimated that total beer sales increased by almost 5% in Lithuania in Q1. With an increase of 6% in the period, Kalnapilis/Tauras increased their market share achieving satisfactory results and bottom line.

Poland showed a minor increase in sales and revenue in Q1, whereas the bottom line continued to be unsatisfactory.

The increase in sales and revenue in Q1 2005 was primarily attributable to Middle Eastern markets, whereas sales developments in the Caribbean were unsatisfactory primarily due to a long-term strike in Guadeloupe, where the Group’s distribution company is situated.

Since publishing its Annual Report for 2004, The Danish Brewery Group has entered into an agreement to sell the former brewery property in Randers (cf. Announcement BG10/2005 of 31 March 2005), which is expected to increase the Group’s profit before tax for 2005 by DKK 5-6 million in 4th Q. Furthermore, as previously mentioned, an agreement has been made with Browary Polskie Brok Strzelec S.A. to acquire the brewery activities of this company (cf. Announcement BG12/2005 of 4 April 2005), which is expected to affect the Group’s profit before tax negatively by some DKK 15 million.

These circumstances as well as Q1 2005 developments do not give rise to changing the previously announced expectations for the Group’s profit before tax for 2005, which is still expected to be in the range from DKK 290 to DKK 340 million.

The primary activities of The Danish Brewery Group are to market, sell, distribute and produce quality beverages focusing on branded products primarily within beer, malt and soft drinks. The Group’s products are sold in some 65 markets with special focus on Northern Europe (the Nordic countries, the Baltic countries, Northern Germany and Poland), Italy, Canada and the international malt drinks markets (the Caribbean, Africa and the UK). The Danish Brewery Group comprises the Albani, Ceres, Faxe and Maribo breweries in Denmark, Kalnapilis and Vilniaus Tauras in Lithuania as well as the soft drinks producer SIA “Cido Partikas Grupa” in Latvia (from 1 July 2004). The Latvian brewery Lacplesa Alus A/S has been included in The Danish Brewery Group as of 1 February 2005. It is the vision of The Danish Brewery Group to develop the Group with increasing profitability as being among the leading providers of beverages in Northern Europe and to develop profitable export markets outside this region.

The acquisition of both SIA ”Cido Partikas Grupa” and Lacplesa Alus A/S should be viewed as an important part of the V8 and V8 Next Strategic Plans of The Danish Brewery Group identifying the Baltic countries as a key target area of the Group.

On 3 April 2005, The Danish Brewery Group entered into an agreement with the Polish brewery business ”Browary Polskie Brok Strzelec S.A.” to acquire the brewery-related assets and activities of this company (cf. Announcement BG12/2005 of 4 April 2005). The acquisition, which is an element in MACH II, the Group’s new strategic platform, secures The Danish Brewery Group four regional beer brands and two breweries in Poland as well as a 48% holding of shares of “Perla Browary Lubelskie S.A.”, which has a strong base in the Lublin area. These activities are expected to be included in the financial statements of The Danish Brewery Group as of 1 May 2005.

Since the Annual General Meeting in April 2004, The Danish Brewery Group has acquired 60,100 shares for treasury. The Company holds some 75,000 treasury shares at 31 March 2005, which are primarily expected to be used to cover the Company’s share option schemes.

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