PERNOD RICARD : Pernod Ricard acquires Vin & Sprit

Market Wire, March, 2008

Pernod Ricard acquires Vin & Sprit and becomes the co-leader of the global wine and spirits industry

Acquisition by Pernod Ricard of Vin & Sprit, owner of the Absolut brand

Absolut, a unique asset, global leader in the premium vodka category with 11M cases

Pernod Ricard becomes the co-leader in the global wine and spirits industry

Purchase price of EUR 5.626bn (including debt)

Significant synergies expected of EUR 125 to 150 million pre-tax

Neutral Earnings Per Share impact in year 1, reaches significant accretion shortly after

Return on investment above cost of capital by year 4 at the latest

Press release - Paris, 31 March 2008

Pernod Ricard is pleased to announce the signing of a contract with the Kingdom of Sweden for the acquisition of 100% of the shares of the Vin & Sprit Group ("V&S"), the owner of Absolut vodka. The acquisition does not include V&S' 10% interest in Beam Global Spirits & Wine, Inc.

This acquisition represents an outstanding opportunity for Pernod Ricard and will result in the Group becoming co-leader in the global wine & spirits industry.

Absolut: a unique asset which perfectly complements Pernod Ricard's portfolio of premium brands

Absolut is the number 1 premium vodka brand worldwide with around 11 million 9 litre cases sold in 2007 and is an iconic brand whose influence goes far beyond the wine & spirits universe. It is one of only four international spirits brands in the world which sells more than 10 million cases a year and has a specially attractive growth profile ( 9% volume growth in 2007).

In the United States, Absolut is the top premium spirits brand, selling more than 5 million 9 litre cases. It has a unique brand image built around values of creativity, innovation and cultural leadership.

In the rest of the world, with close to 6 million cases sold in 2007, Absolut is one of the most global brands in the industry with a significant presence in all the continents and a strong perception as a leader in the premium vodka category.

Absolut fits perfectly with Pernod Ricard's strategy and further enhances the strength of our premium brands portfolio, complementing Chivas, Ballantine's, The Glenlivet, Jameson, Martell, Beefeater, Ricard, Malibu, Kahlua, Havana Club, Mumm, Perrier-Joueet, Jacob's Creek and Montana.

The acquisition of V&S also provides Pernod Ricard with a leading position in the Nordic wine & spirits market through its portfolio of local brands. In addition, V&S also brings other attractive opportunities, notably Cruzan rum, a dynamic brand in the United States (circa 600,000 cases sold in 2007 up 27%) and Level, the number 4 brand in the super-premium vodka category in the United States.

Pernod Ricard becomes the co-leader in the global wine & spirits industry

With the acquisition of V&S, Pernod Ricard becomes the co-leader in the global wine & spirits industry with:

- Global spirits volumes of 91 million cases1

- The number 1 position in premium spirits with a 27% market share2.

In the United States, the largest spirits market worldwide, Pernod Ricard's position increases from number 4 to number 2 with a market share of close to 14%3. V&S brands are currently distributed in the US by Future Brands (a joint venture held 49% by V&S and 51% by Fortune Brands) through a distribution agreement currently in place until beginning of 2012. From an operating stand point, V&S controls the marketing and A&P strategy for its brands. Furthermore, Absolut distributors are already largely aligned with Pernod Ricard's distributors in the US.

In the rest of the world, Absolut will benefit from the strength of Pernod Ricard's globally integrated distribution network, both in mature Western European markets as well as in high-growth emerging regions. Excluding the US and Nordic countries, V&S' brands are currently distributed through Maxxium, a joint venture between V&S, Fortune Brands, The Edrington Group and Remy Cointreau, each partner having a 25% shareholding. Pernod Ricard will exit Maxxium within 2 years from closing for a low contractual cost.

Pernod Ricard will therefore enhance the growth of Absolut in every region by combining its role as a brand-owner and its global footprint in conjunction with the existing distribution efforts of Future Brands and Maxxium. Pernod Ricard will immediately reap the benefit of Absolut's presence in its portfolio.

The acquisition of V&S will result in the end of the Stolichnaya distribution contract which Pernod Ricard will continue to perform during a short transitional period until SPI identifies a new distributor.

A transaction with strong value creation for Pernod Ricard's shareholders

The price paid for V&S by Pernod Ricard will be EUR 1,450 million plus USD6,050 million, i.e. EUR 5,280 million at the current Euro/USD exchange rate. Pernod Ricard will also assume net debt of EUR 346 million as of 31 December 2007 resulting in a total enterprise value of EUR 5,626 million.

V&S will pay the Swedish government a dividend of EUR 85 million before closing of the transaction, and the purchase price of the shares will be increased by a pro-rated annual interest charge of 2.0% from 1st January 2008 until the effective closing date of the transaction. In exchange, Pernod Ricard will benefit from the full cash flow generated by V&S over this period.