Mexico: Grupo Modelo prevails in the arbitration against Gambrinus

Grupo Modelo, Mexico's leading company in the brewing, distribution and sale of beer -- received notice on March 9 that it has prevailed in the arbitration initiated by The Gambrinus Company, its current importer for the Eastern territory of the United States. The arbitral award confirms that the importer agreement with Gambrinus will expire on December 31, 2006.

Mr. Carlos Fernandez, Chairman and CEO of Grupo Modelo, stated: "The arbitral award, in our favor, will allow us to seek the best available options with the aim of enhancing the value of our export business and create more value for our shareholders." Mr. Fernandez further added: "We are very confident that the transition process ahead of us will in no way harm or disrupt our export operations into the U.S. market and we will take all necessary measures to assure that the supply of our products to the distribution network in the east will continue".

Founded in 1925, Grupo Modelo is the leader in the production, distribution, and sale of beer in Mexico. In the year ending December 31, 2005, it held a 62.8% share of the domestic and export markets. Modelo has seven breweries in Mexico, with an installed capacity of 52 million hectoliters of beer per year. At present, it has 11 brands, among them Corona Extra, "the best selling Mexican beer in the world," Modelo Especial, Victoria, Pacifico, and Negra Modelo as well as other regional brews. It exports five brands to more than 150 countries and is the exclusive importer in Mexico of the beers produced by the U.S. brewer Anheuser-Busch, including Budweiser, Bud Light and O'Douls. Grupo Modelo has been listed on Mexican Stock Exchange since 1994 (GMODELOC).

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