MOSCOW, September 30, 2003 - SUN Interbrew Limited (Lux: SUNB5-LX), a leading brewer in Russia and Ukraine, wishes to announce its financial results for the second quarter ended 30 June 2003.

Results

Operational Highlights

The positive trend evolving over the last quarter of 2002 and the first quarter this year has followed through into the second quarter, supported by the following achievements by SUN Interbrew Ltd:

·         Volume growth in Russia of 38%, far exceeding and significantly driving the total market growth of 8%. This resulted in a market share increase from 11.9% in the second quarter 2002 to 15.2 % in the second quarter 2003.

·        Market leadership in Ukraine further strengthened, with volume growth of 39% and a market share increase from 30.6% to 33.8 %.

·         EBITDA increased by ?10m in Q2 2002 versus Q2 2003 and reached ?36.5m.

·         Excluding the negative currency impact, Organic EBITDA was ?50m, or 23.5% more than in the second quarter 2002.

·        Net Income was  ?9m for the period, 150% higher than in the same period lastyear.

·        Organic Gross margins increased by 2.2%, primarily due to the company’s continuous efforts to introduce higher margin products into the sales mix.

·        Klinskoye^®and Sibirskaya Korona^® brands recovered, alongside significant growth for Staropramen^®  following its launch at the beginning of the year and a successful introduction of Beloye, a new variety of the Sibirskaya Korona^® brand. The growth of Stella Artois^®  and Chernigivske^® were also particular achievements in this quarter.

·        Continued reduction in distribution costs resulting from the implementation of our cross brewing strategy.

Financial Highlights

FINANCIAL PERFORMANCE IN THE SECOND QUARTER

Despite the continuing negative currency impact SUN Interbrew initiated and achieved a number of positive developments in the second quarter 2003.

Reduction in Cost Base

Sales, marketing and distribution costs for the second quarter were ?36.9m versus ?35.3m in the same quarter last year. Marketing costs were flat versus the same period last year, whilst volumes were almost 40% higher this quarter.

The average distribution cost per hl was almost ?1 lower in the quarter compared to the same period last year.

Total sales and marketing costs for the quarter represent 1312.9% of Net Turnover, compared to 1714.4% in the second quarter 2002.

General and administration costs for the quarter were ?2.7m lower than in the same quarter last year, mainly driven by payroll and consultancy savings.

RUSSIA

In total the volume of SUN Interbrew beer sold in Russia in the second quarter was 3.20m hl versus 2.31m hl in the same period last year, representing an increase of 38%. At the same time the total market volume in Russia increased by only 8%.

Tolstiak^®sales volume grew by 51% versus the second quarter 2002. This growth was stimulated by further PET expansion, an efficient pricing policy and advertising focusing on improving the quality perception. Klinskoye^® sales saw a recovery with volume growing by 17%. This growth was driven by the success of PIVOPACK^® and new Redkoye variety launches as well as the introduction of a new label design.

SibirskayaKorona^® exceeded last year’s sales by 52%, driven by a new proprietary PET bottle, PIVOPACK^® that has the same shelf life as a glass bottle, and the launch of the new variety, Beloye.

Stella Artois^®grew by 148% as a result of further national expansion of the brand.

Sales volumes for Staropramen^® continued to increase following the successful launch in the first quarter 2003.

Overall, the increase in share of premium and licensed brands in SUN Interbrew total portfolio during the second quarter 2003 had a positive effect on organic gross margins.

Sales volumes, m Hl

Market Share Growth  - 2002 plus 1H 2003 (Average for the period)

UKRAINE

The volume of beer sales in Ukraine grew from 1.25m hl in the second quarter 2002 to 1.73m hl in the second quarter 2003, representing an increase of 39.2%, well ahead of the total market growth in the quarter of 25.9%.

Sales volumes, m Hl

Market Share Growth  - 2002 plus 1H 2003 (Average for the period)

This growth has been achieved by the continued success of the following brands:

–        Rogan^®, 27% growth

–        Chernigivske^®,  54% growth

–        Excellent growth of Stella Artois^®, at 77%

SUMMARY AND OUTLOOK

The encouraging start to the year with strong performances in both Russia and Ukraine has been reinforced in the second quarter of 2003. SUN Interbrew pursued the strategy of building its diversified portfolio of brands and enabling it to take up strong positions in each segment of the market. This was supported by thoughtful and sizeable investments in marketing and commercial activities, resulting in the recovery of market share in Russia and continued growth in Ukraine.

Whilst the further strengthening of the Euro is expected to adversely affect our headline results, the bottom line performance for the year will be better than last year, provided the company keeps the momentum going in growing volumes with continued focus on higher margin products, whilst at the same time controlling costs in order to support our margin development.

ENDS

For further information please contact:   

SUN Interbrew Limited

Joseph W.Strella, Chief Executive Officer                        +7 (501) 960-2360

Luc Vanheel, Chief Financial Officer

Financial Dynamics

Ben Foster                                                                       +44 (20) 7269 7247

Caroline Ledosquet                                                           +44 (20) 7269 7233

Notes to Editors:

SUN Interbrew Limited is the second largest brewer in Russia and the largest brewer in Ukraine.  The company is a strategic partnership between Interbrew, one of the largest brewers in the world, and the SUN Group, operating in the region since 1958, and in the beer sector of Russia and CIS since the beginning of 1990s.

The company’s main brands are Stella Artois^®, Staropramen^®, Klinskoye^®, Sibirskaya Korona^®, and Tolstiak^® in Russia, and Stella Artois^®, Chernigivske^®, Rogan^®, Taller^® and Yantar^® in Ukraine.

SUN Interbrew is a public company registered in Jersey, whose shares are listed and traded on the Luxembourg, Frankfurt and Berlin exchanges.

SUN Interbrew Limited and Subsidiaries
Condensed Consolidated Statements of Operations
For the Three and Six Months Ended June 30, 2003 and 2002
(Euros in thousands, except per share amounts)

(Unaudited)

See Notes to Condensed Consolidated Financial Statements.

SUN Interbrew Limited and Subsidiaries
Condensed Consolidated Balance Sheets
As of June 30, 2003 and December 31, 2002
(Euros in thousands)

See Notes to Condensed Consolidated Financial Statements.

SUN Interbrew Limited and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Three and Six Months Ended June 30, 2003 and 2002
(Euros in thousands)

(Unaudited)

See Notes to Condensed Consolidated Financial Statements.

Notes to Condensed Consolidated Financial Statements

For the Three and Six Months Ended June 30, 2003 and 2002

The accompanying consolidated financial statements of SUN Interbrew Limited and Subsidiaries (the “Company”) have been prepared in conformity with the accounting principles generally accepted in the United States of America (“US GAAP”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted.  It is suggested that these condensed, consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s December 31, 2002 audited financial statements.  The results of operations for the three and six months ended June 30, 2003 and 2002 are not necessarily indicative of the operating results to be expected for the full year.

The majority-owned subsidiaries incorporated under the laws of the Russian Federation and Ukraine (the “Russian subsidiaries” and “Ukrainian subsidiaries”) maintain accounting records and prepare their financial statements in Russian rubles and Ukrainian Hryvnas in accordance with the requirements of Russian and Ukrainian accounting and tax legislation. The accompanying financial statements differ from the financial statements prepared for statutory purposes in Russia and Ukraine in that they reflect certain adjustments, not recorded in the accounting books of the Russian or Ukrainian subsidiaries, which are appropriate to present the financial position, results of operations and cash flows in accordance with US GAAP.

Significant Transactions

As of 1 May 2003, ZAO “Klin brewery”, ZAO “Rosar”, OAO “Kursk brewery” and ZAO “Saransk brewery” merged into one legal entity, OAO “United Brewing plants”. The merging had no significant impact on the consolidated financial statements as of June 30.