Executive Summary. 1. Volumes:

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1 WARSAW, Poland May 15, Central European Distribution Corporation (CEDC) today announced its results of operations for the period ended. Executive Summary In the first quarter the Company continued to focus on developing sales volumes in its key markets. We also continued to seek new international sales opportunities for our vodka brands through extending package sizes in existing markets, entering new markets (including through new distribution partners), and the extension of our brands portfolio. CEDC finished Q1 with continuing improvements in our operational and financial performance. Key highlights from Q1 include: Strong volume performance and market share gains in Poland; Russia - better than market performance, market share stabilized; Hungary - market share gains; and Strong growth in volume and value of our international business with Kazakhstan over 50% higher year on year. Total CEDC volume despite winding down the Whitehall business, showed a slight increase of 0.1% versus Q1. Total volumes of the ongoing CEDC Group (excluding Whitehall) increased by 1.1% year on year, as a result of accelerated business growth in Poland and growing international sales. Notwithstanding negative developments in the vodka category in Russia and Poland following significant excise tax increases, CEDC managed to improve its market share in Poland by 1.9ppt. and increased slightly, by 0.1ppt., its market share in Russia. CEDC also increased its volume in international sales by 32.3% compared to Q1. Total reported net sales revenues of the CEDC Group, including the Whitehall business, decreased by 9.8% from $156.2 million in Q1 to $140.9 million for Q1. Total net sales revenues on constant currency basis (recalculated at Q1 exchange rates) for the first quarter of the ongoing CEDC Group increased by 5.0% (+$6.7 million) from $134.8 million in Q1 to $141.5 million in Q1. This was primarily driven by very strong sales performance in Poland delivering +13.9% higher net sales. As a result of the strong performance in our Polish operations as well as continued growth in international markets, we were able to achieve a strong financial performance with EBITDA for Q1 of $5.9 million. 1. Volumes: In the first quarter the Company continued to focus on developing sales volumes in its key markets. In Poland new flavor variants Soplica Plum and Soplica Blackcurrant were introduced. In Russia we continued to focus on new package sizes to fulfill a wider range of demand from our customers and consumers. We also continued to seek new international sales opportunities for our vodka brands through: extending our range of package sizes in existing markets such as the CIS, entering new markets or strengthening our position through new distribution partners as in the case of Żubrówka distributor in France, and the extension of our brands portfolio through the launch of Green Mark in Germany and Parliament rollout across Germany from our traditional heartland in Berlin. Total CEDC volumes, despite winding down the Whitehall business, showed a slight increase of 0.1% versus Q1. Ongoing CEDC volumes grew year-on-year in Q1 compared to Q1 by 1.1% despite declining vodka markets in Poland and Russia, lower sales of RTD beverages as well as political and economic turmoil in Ukraine, which negatively affected consumption volumes in that country down 0.1 million 9-liter cases or -39.0%. 1

2 The first quarter of has continued to be very successful for the Polish segment of CEDC s business with further gains in market share by volume to 24.7% based on the February/March AC Nielsen data. Despite a total Polish vodka market decline of 9.3%, CEDC volumes in Poland in the quarter increased by 16.5% from 2.2 to 2.5 million 9-liter cases. CEDC also improved its market share in Russia from 10.5% to 10.6% year on year. Russian Alcohol performed better than the local vodka market with a total decrease in its volumes of 12.5% versus a decline in the total vodka market of 14.8% in the quarter. Our core nationwide brands Green Mark and Talka performed better than the market: Talka growing 15.8% and Green Mark declining 5.7%. The volume decrease was also an effect of Whitehall s loss of contracts with Hardy s, Mondoro and Moet Hennessey, which resulted in Whitehall s business wind-down. This was partially offset by higher international sales, which increased by 32.3% as compared to the first quarter. Total volumes in Hungary increased by 23.8% as compared to the first quarter as a result of higher Royal Vodka sales (increase in volume by 21.4%) resulting from increased demand caused by shortage of stock at the year end as well as higher Jaegermeister sales (increase in volume by 40.8%). Moreover due to excise tax increase from January comparable sales for the first quarter was lower. There was no excise tax increase in. Our market share in mainstream vodka segment grew by 7.0ppt., increasing from 46.1% as of December 31, to 53.1% as of. International sales volumes in our top 10 markets increased year-on-year in Q1 compared to Q % with very strong growth in Kazakhstan of 54%. 2. Revenues: Total net sales revenues of the CEDC Group including the Whitehall business decreased from $156.2 million in Q1 to $140.9 million for Q1 primarily due to: impact of foreign exchange translation of $10.7 million, lower Whitehall sales of $11.5 million (net of currency effect), offset by Poland delivering higher net sales of $7.1 million (net of currency effect). Total net sales revenues of the ongoing CEDC Group on a currency neutral increased in Q1 by 5.0% (+$6.7 million) from $134.8 million in Q1 to $141.5 million for Q1. 3. Financial Performance: Total gross profit decreased by $10.7 million, from $67.9 million in Q1 to $57.2 million in the current period. This decrease was caused mainly by negative foreign exchange differences of $4.2 million and a deterioration in the performance of the Whitehall Group resulting from its wind-down of $6.5 million. Gross profit of the ongoing CEDC Group on a currency neutral basis when comparing these two periods remains flat at $60.1 million. Reported gross profit as a percentage of net sales decreased by 2.8ppt. from 43.4% in Q1 to 40.6% in Q1 and results mainly from the increasing share of the Polish segment in total CEDC consolidated results, which operates at slightly lower margins compared to Russia. For the ongoing CEDC Group on a currency neutral basis the decrease is only 2.1ppt. (from 44.5% to 42.4%). Total operating expenses as presented in the table below decreased year on year by $20.7 million (28%) and as a percent of net sales they decreased by 9.5ppt. from 47.7% in Q1 to 38.2% in Q1. Reported operating income in Q1 increased by $10.0 million year on year, from a loss of $6.6 million in Q1 to a profit of $3.4 million this year. The operating profit for the ongoing CEDC Group on a currency neutral basis in Q1 amounted to $2.9 million compared to loss of $5.7 million in Q1. As a result of the strong performance in our Polish operations as well as continued growth in our international markets, we achieved in Q1 EBITDA of $5.9 with a cumulative EBITDA for the successor period (from June 6th until ) of $83.7 million. The table below presents our EBITDA for the successor period: Underlying Successor EBITDA twenty-five day period ended June 30, September 30, three month period ended December 31 Total Poland Hungary Russia excl. Whitehall (2 603) Corporate overhead (129) (1 139) (2 145) Ongoing CEDC Group Russia - Whitehall (1 860) Total EBITDA

3 4. Goodwill and Trademarks value assessment: In order to validate and support the value recognized in CEDC s books for indefinite life assets (trademarks and goodwill), CEDC is required by its accounting policies and US GAAP guidance to perform impairment test on these assets annually or more frequently, if facts and circumstances indicate such a need. The management of CEDC closely monitors the performance of each trademark throughout the year. Current analysis shows that Parliament and Zhuravli are performing below expected results in Q1, however taking into account the full year outlook for these brands, CEDC believes there are no impairment indicators at this stage. Therefore no impairment test was performed by CEDC during Q1. CEDC will continue monitoring these and other brands and will revisit its assessment next quarter. The management of CEDC also closely monitors the performance of each business unit based on the analysis of year-to-date performance aligned with the expected year-to-go results, as well as benchmarking versus current macroeconomic and industry market factors. The management of CEDC assessed that there are no goodwill impairment indicators as of Q1, therefore no impairment test was performed during Q1. Operational Performance CEDC Volume Update Overall sales volumes in the first quarter of were stable as compared to first quarter of (+0.1%), however, comparing the sales volumes of CEDC s ongoing business, they increased by 0.1 million 9-liter cases (+1.1%) to 4.9 million 9-liter-cases. CEDC sales volumes continued to grow from Q4 with its sales volumes increasing by 2.2% (2.8% for the ongoing CEDC Group) compared to the prior year. CEDC operates and manages its business based on three primary geographic segments: Poland, Russia and Hungary. Sales volumes for these geographic segments are presented below. Three-months ended Segment Sales Volumes (thousands of 9-liter cases) Three-months ended Change Q1 vs Q1 Change in % Q1 vs Q1 Segment Poland 2,159 2, % Russia excl. Whitehall 2,580 2,257 (323) -12.5% Hungary % Restricted Group* 4,819 4, % Russia Whitehall (48) -24.7% Total Sales Volumes 5,013 5, % * Whitehall became an unrestricted subsidiary on October 3,, therefore for the purpose of this presentation, comparative information for CEDC Group are also presented excluding Whitehall. Poland: Continues its growth momentum from with volumes in Q1 significantly up year on year by 16.5%. Russia: Soplica brands strengthened their position growing volumes by 10.3% vs Q1 due to positive impact of new launches Soplica Blackcurrant and Soplica Plum. Żubrówka brands continued their success and noted a 17.0% increase in sales volumes. Total Absolwent category increased by 14.3% mainly due to successful Absolwent flavored brands launch in Q1. Growth in Soplica and Absolwent strengthened by growing share of small packs, supported by strong trade activities: introduction of perfect store program, placement of dedicated branded coolers in the shops and focus on widening distribution range. a) Russian Alcohol vodka: Market has been negatively affected by excise and other regulatory changes. In, sales volumes continued to decline in Russia, primarily as a result of a large excise tax increase of 25% from January 1,, which adversely affected consumer consumption. These excise changes led to an increase in the availability of illegal and counterfeit products. Additionally the increasing imposition of 3

4 bans on alcohol sales between specific times and in specific regions has limited consumer access to alcoholic beverages in Russia. Nevertheless CEDC performed better in Q1 than the total vodka market in Russia. Although overall Russian Alcohol vodka sales volume decreased by 10.8% following a decline in the vodka market of 14.8% versus the previous year, it has stabilized its market share in. b) Whitehall business: Volumes declined year on year due to discontinuation of distribution of Mondoro and Moët Hennessy products and process of winding-down of the Whitehall business started in the 2H. c) Bravo business: Volumes in CEDC s ready-to-drink (RTD) business in Russia decreased year on year by 24.6% following a general decline in the RTD product group in the market. International: Volumes showed 32.3% year-on year growth versus in CEDC s top ten international markets mainly as a result of very positive trends in Kazakhstan of 54%. Market Share Development CEDC s market shares were stable to increasing across CEDC compared to. 1. Poland vodka share of vodka market increased year on year by 1.9ppt. and amounted to approximately 24.7% by volume. 2. Russia vodka share of vodka market stabilized since the second half of and amounted to approximately 11% by volume. 3. Hungary vodka share in mainstream vodka market increased versus prior year by 7 ppt. and amounted to approximately 53.1% by volume. 4

5 Financial Performance CEDC Group three months ended compared to three months ended A summary of the operating performance of the CEDC is presented below. The following data is expressed in thousands USD. Sales... $ 327,869 $ 321,449 Sales to Related Parties ,997 Excise taxes... (171,826) (190,544) Net sales , ,902 Cost of goods sold... 88,214 74,101 Cost of goods sold to Related Parties ,594 Gross profit... 67,873 57,207 Selling, general and administrative expenses... 74,110 54,072 Provision for doubtful accounts (281) Operating income... (6,595) 3,416 Non-operating income / (expense), net Interest income ,669 Interest expense... (28,677) (18,801) Other financial income / (expense), net... (37,553) (34,596) Other non-operating income / (expense), net... (4,108) (4,022) Income / (loss) before income taxes... (76,390) (51,334) Income tax benefit / (expense)... (3,066) (386) Net income / (loss) attributable to the Company... (79,456) (51,720) Other comprehensive income / (loss), net of tax: Foreign currency translation adjustments... 23, Comprehensive income / (loss) attributable to the Company... $ (56,050) $ (50,947) 5

6 CEDC Ongoing Business three months ended compared to three months ended A summary of the operating performance of Ongoing CEDC Group (excluding Whitehall) is presented below. The following data is expressed in thousands USD. Sales... $ 305,194 $ 320,781 Sales to Related parties Excise taxes... (170,588) (189,286) Net sales , ,435 Cost of goods sold... 74,600 76,094 Cost of goods sold to Related Parties Gross profit... 60,051 55,841 Selling, general and administrative... 65,560 52,350 Provision for doubtful accounts (15) Operating income... (5,730) 3,506 CEDC Ongoing Business Currency Neutral three months ended compared to three months ended A summary of the operating performance of Ongoing CEDC Group for three months ended recalculated at exchange rates applicable for Q1 in order to eliminate the impact of currency movements. The following data is expressed in thousands USD. Sales... $ 305,194 $ 335,091 Sales to Related parties ,057 Excise taxes... (170,588) (194,633) Net sales , ,515 Cost of goods sold... 74,600 80,215 Cost of goods sold to Related Parties ,227 Gross profit... 60,051 60,073 Selling, general and administrative... 65,560 57,205 Provision for doubtful accounts (13) Operating income... (5,730) 2,881 6

7 Net sales Net sales for the total CEDC Group decreased year on year by approximately -9.8%, or $15.3 million, from $156.2 million in Q1 to $140.9 million in Q1. This was primarily due to: impact of foreign exchange translation of $10.7 million, lower Whitehall sales of $11.4 million (net of currency effect), offset by Poland delivering higher net sales of $7.1 million (net of currency effect). CEDC s consolidated net sales for its ongoing business excluding the impact of currency movements in Q1 of $141.5 million increased +$6.7 million (+5.0%) as compared to $134.8 million in Q1. Gross profit Reported gross profit for Q1 of $57.2 million in Q1 decreased by $10.7 million year on year, while on a currency neutral basis, gross profit of the ongoing CEDC Group remains flat year on year at the level of $60.1 million. Total CEDC Group gross profit, as a percentage of net sales decreased -2.8ppt. to 40.6% in Q1 versus 43.4% in Q1. The decrease is mainly due to the increasing share of the Polish segment in total CEDC consolidated results, which operates at slightly lower margins compared to Russia. Operating expenses Operating expenses including provision for doubtful accounts decreased by $20.7 million, or 27.8%, including the effect of winding down the Whitehall business of $7.2 million. Operating income CEDC Group operating income for the first quarter of was $3.4 million with EBITDA of $5.9 million, primarily due to the strong performance of its businesses in Poland and growth in our International business combined with savings related to Whitehall wind-down of approximately $5.5 million. Liquidity position CEDC maintains a solid liquidity position. After CEDC Group has refinanced its Zenit Bank loan, refinanced its Alfa-Bank loan and obtained additional financing from Alfa Bank amounting to 750 million Russian rubles (approximately $21.1 million) and has available unused credit limits of $38.0 million. The table below sets forth CEDC consolidated cash flow during the periods indicated Cash flows from operating activities Net loss $ (79,456) $ (51,720) Adjustments to reconcile net loss to net cash provided by operating activities Depreciation and amortization 4,526 2,525 Deferred income taxes Unrealized foreign exchange losses 34,726 31,618 Stock options fair value expense Interest accrued, net of interest capitalized 0 16,175 Changes in restricted cash 0 (419) Other non-cash items 2,102 (269) Change in operating assets and liabilities: Accounts receivable 138,026 90,707 Inventories 18,534 87,589 Prepayments and other current assets (15,932) (33,072) Trade accounts payable (41,642) (37,491) 7

8 Other accrued liabilities and payables (including taxes) (52,069) (141,047) Net cash provided by / (used in) operating activities $ 9,827 $ (35,235) Cash flows from investing activities Fixed assets, net (2,512) (3,325) Loans to related parties, net 0 2,732 Net cash used in investing activities (2,512) (593) Cash flows from financing activities Bank loans, net (47,058) 22,475 Decrease in short term capital leases payable Net cash provided by / (used in) financing activities (46,895) 22,475 Currency effect on brought forward cash balances (1,137) (1,642) Net decrease in cash (40,717) (14,995) Cash and cash equivalents at beginning of period 84,729 46,709 Cash and cash equivalents at end of period 44,012 31,714 Net cash used in operating activities in Q1 results mainly from phasing caused by: Factoring of accounts receivable in Russia commenced in resulting in cash brought forward in Q4 that would normally be collected in, Tax cash outflows in Q1, mainly excise, settled with the tax office in Q1, but incurred at the end of in relation to increase of inventory levels made in advance of expected excise increase in Poland, Russia and Kazakhstan. CEDC reported in its 10-K for $156 million favorable operating cash flow compared to 2012 and the cumulative change in operating cash flow for and YTD versus 2012 is favorable by $121 million. Net cash flows used in investing activities represent net cash used to grant loans and acquire fixed assets. Net cash outflow for the three month period ended was $2.5 million compared to $0.6 million outflow for three month period ended. The change is driven by higher capital expenditures offset by inflow from repayment of a related party loan in the amount of $2.9 million. Net cash flow from financing activities Net cash outflow from financing activities was $46.9 million for the three month period ended as compared to inflow of $22.5 million for the three month period ended. The change is mainly driven by lower loan repayments in the first quarter of, offset by received payments from factored receivables made by customers directly to CEDC s account instead of the factor account. There were no payments received by CEDC instead of the factor in. In the first quarter of we have repaid $11.9 million of external borrowings and received an amount of $34.2 million instead of the factor. CEDC s net debt position as of of $797.9 million increased by $45.5 million compared to the end of. As of, CEDC had utilized $95.5 million out of the total $181.9 million available in granted credit lines. The available credit limits are decreased by the amounts of factored receivables not yet repaid to factor by our customers in the amount of $48.3 million. As a result available credit facilities as at amount to $38.0 million. 8

9 Days sales outstanding ( DSO ) is favorable by 1 day in comparison to, as a result of CEDC s focus on improving receivables collection. Days in inventory ( DIO ) is favorable by 11 days in comparison to, resulting from strict control over inventories rotation. Days payable outstanding ( DPO ) is favorable by 30 days in comparison to, as a result of extended credit limits with suppliers. December 31, DSO (46 excl. factored receivables) 40 DIO (41 excl. FSA adj and inventories consigned to others) DPO Capital expenditures In the three months ended, CEDC spent $3.4 million mainly on production and other facilities, licenses, vehicles, coolers and IT infrastructure. Third-party debt balances The table below presents movements on third-party loans during the first quarter of. Liabilities from bank loans and overdraft facilities as of December 31, (including interest accrued) Drawings: $ 114,708 Raiffeisen Bank 137 Repayments: Alfa-Bank (15,164) Bank Zenit (1,949) Sberbank (1,185) Grandinvest Bank (1,019) Liabilities from bank loans and overdraft facilities as of (including interest accrued) $ 95,528 Factored receivables decreasing available credit limits $ 48,313 Unutilized bank loans and overdraft facilities as of Raiffeisen Bank 2,102 Alfa Bank 35,921 Total granted bank loans and overdraft facilities as of $ 181,864 Transactions with related parties In the first quarter of, CEDC entered into a number of transactions with members of the Russian Standard group, primarily with Roust Inc., associated with the sale and purchase of goods in the ordinary course of business. CEDC entered into an arrangement with Roust Inc. on the basis of which CEDC sells inventories at market prices to Roust Inc. and repurchases those inventories with a storage and logistics cost mark-up. CEDC also rents office premises from Union Trust Stroy and Russian Standard Vodka. Total value of loans granted to Related Parties as of 31 March, amounted to $76.0 million (including interest accrued). The related party loans have been secured with a pledge on accounts receivable for 83% of their value. For details of Related Party Transactions, see Note 15 in our Form 10-Q for Q1/. 9