Turkey: Anadolu Efes announced its sales volume figures for the year-ended 31.12.2005

Anadolu Efes announced on January 26 its sales volume figures for the year-ended 31.12.2005 continued to grow. Total beer sales volume increased by 11% in 2005 up to 16.0 million hectolitres.

Anadolu Efes Biracılık ve Malt Sanayii A.S. (Anadolu Efes), listed in the Istanbul Stock Exchange (AEFES.IS), is the holding company of Efes Beverage Group’s beverage interests as well as an operating company, under which Turkey beer operations are managed. The Efes Beverage Group is composed of Anadolu Efes and its subsidiaries that produce and market beer, malt, soft drinks across a geography including Turkey, Russia, the CIS countries and Southeast Europe.

The Group operates with 14 breweries, 4 malteries and 11 Coca-Cola bottling facilities in 11 countries and has an annual brewing capacity of around 21 million hectoliters, malting capacity of 150,000 tons and Coca-Cola bottling capacity of 510 million unit cases per annum.

TURKEY BEER

Although the special consumption tax increased once more in Q1 2005 and the impact was fully reflected in the sales prices, the domestic sales volume increased by 4% in 2005 compared to 2004 and reached 6.6 million hectoliters.

“We have further expanded our brand portfolio in Turkish market through the introduction of Australia’s most popular beer brand “Foster’s” in the first half of 2005.

Including the export volume, which recorded a growth of 29% by reaching 0.5 million hectoliters in 2005, the total sales volume of our Turkey beer operations increased to 7.1 million hectoliters from 6.8 million hectoliters in 2004, indicating a growth of 5% year-over-year.”

INTERNATIONAL BEER (EFES BREWERIES INTERNATIONAL N.V.)

“Our international beer operations are conducted by Efes Breweries International N.V. (“EBI”), incorporated in the Netherlands and listed on the London Stock Exchange (IOB:EBID). EBI is a 70% subsidiary of Anadolu Efes and manages its brewing operations through 9 breweries and 2 malteries in 5 countries with a total annual capacity of approximately 11.8 million hectoliters of beer and in excess of 50,000 tons of malt.

In 2005, in order to meet the increasing demand in its operating markets, EBI has increased the capacities of its Ufa and Rostov breweries to 2.0 mhl and 1.20 mhl, respectively, as well as the capacity of its brewery in Moldova to 0.9 mhl.

In Russia, EBI recorded a 16% domestic sales volume growth in 2005 vs. 2004, ahead of the market growth and reached 5.9 million hectoliters. EBI’s economy segment beer brand “Beliy Medved” was an important volume driver, recording a volume growth in excess of EBI’s sales volume growth in Russia. In addition, two licenced brands, “Amsterdam Navigator” introduced at the end of 2004 and “Zlatopramen”, which was launched in January 2005, both achieved substantial sales volume growth in 2005. As of November 2005, EBI’s volume based market share in Russia was approximately 8%, maintaining its #4 position according to AC Nielsen research.

EBI very recently announced the acquisition of 92.34% of Krasny Vostok Brewing Group (“the KV Group”) in Russia. The KV Group operates two breweries located in Kazan and Novosibirsk, and also owns three malting facilities in Kazan. With the acquisition of the KV Group, EBI will increase its total annual brewing capacity in Russia to approximately 18 million hectolitres and total market share to around 10%. Additionally, total annual malt production capacity of EBI in Russia will increase from approximately 46.000 tons to approximately 139,000 tons. The acquisition is expected to improve the operating results of EBI’s business in Russia, enabling it to solidify and build on its 4th position within the dynamically consolidating market through increased capacity, extensive geographical coverage, lower cost base and higher sales volume.

EBI’s other two markets, Kazakhstan and Moldova, delivered 26% and 5% sales volume growth in 2005, respectively. EBI is the second largest brewer in Kazakhstan market, maintaining its 18% volume market share as of September 2005 according to AC Nielsen research, while maintaining its leading position in the Moldovan beer market with 69% volume market share as of October 2005 based on MEMRB research.

Serbia and Romania accounted for 6% and 7% of EBI’s total sales volume in 2005 respectively, both recording double-digit volume growth compared to previous year.

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