Allied Domecq PLC Announces Acquisition of Kuemmerling GmbH.

Business Editors

BRISTOL, United Kingdom--(BUSINESS WIRE)--Sept. 4, 2001

Allied Domecq PLC ("Allied Domecq"), the international spirits and wine group, today announced that it has acquired Kuemmerling GmbH ("Kuemmerling") for DM 398 million in cash (pound 128 million) on a debt free basis.

Kuemmerling, a family owned business based in Bodenheim, is Germany's fourth-largest spirits brand and the second-largest brand in the bitters category. Kuemmerling sold some 680,000 cases in the year to December 31, 2000.

The acquisition, which has been funded from existing debt facilities, will be earnings enhancing in the first full year (before amortisation of goodwill). Allied Domecq expects to achieve immediate operational synergies as the business is merged with its existing German operations.

Philip Bowman, Allied Domecq's Chief Executive, commented:

"The acquisition of Kuemmerling represents a significant addition to our existing operations in Germany, Europe's largest spirits market, where Allied Domecq will now rank as the fourth largest spirits company. This latest acquisition follows on from our recent purchases of Graffigna and Sainte Sylvie in Argentina and the Buena Vista Winery in California and is in line with Allied Domecq's strategy of pursuing sustainable growth in profits rather than merely chasing increased volume.

This deal and the acquisition of Montana mark a particularly satisfactory way to end our financial year. I am pleased with our performance during the current year. Our profits are in line with market expectations. Our determination not to chase size for size's sake has enabled the company to adapt more quickly to the changing market conditions being experienced by the sector as a whole."

Background

-- The bitters category accounts for approximately 10.5% of the German spirits
market by volume and approximately 14.5% by value. The category has continued
to grow, despite a recent decline in the total spirits market. Bitters are
traditionally made from aromatized alcohol with sugar and herbal extracts.

-- Kuemmerling is a half bitter, being 35% ABV. It is typically drunk as a
digestive, a chaser or mixed. There are two bottle sizes: 0.02l (c.70% volume)
and 0.5l.

-- As a result of the transaction, our share (by value) of the German market
will be over 5% (from 3%). We will have two top-15 brands (Kuemmerling and
Ballantine's). ADSW GmbH will become the fourth-largest spirits company in
Germany.

Allied Domecq is the second largest spirits company in the world and a leading quick service restaurant operator. Allied Domecq's ordinary shares trade on The London Stock Exchange under ALLD. Further information can be found at www.allieddomecqplc.com.