AmBev Announces the Payment of Interest on Own Capital and Dividends.

Business Editors

SAO PAULO, Brazil--(BUSINESS WIRE)--Sept. 2, 2003

Companhia de Bebidas das Americas - AmBev (NYSE:ABV) (NYSE:ABVc) (BOVESPA:AMBV4) (BOVESPA: AMBV3), the world's fifth largest brewer and Brazil's leading beverage company, announced that its Board of Directors approved the payment of interest on own capital and complimentary dividends, relating to the results of the first seven months of 2003, to be included in the payment of compulsory dividends of the fiscal year of 2003.

The Board approved the payment of interest on own capital (IOC) of R$ 0.553 per common ADR and R$ 0.608 per preferred ADR. Excluding the withholding income tax, the net payment of interest on own capital will be of R$ 0.470 per common ADR and of R$ 0.517 per preferred ADR. Additionally, the Board approved the payment of complementary dividends of R$ 1.230 per common ADR and R$ 1.353 per preferred ADR, which are exempt of income taxes. Payments will be made on October 13, 2003, based on the shareholder position at October 2, 2003. After that date AmBev shares will be traded ex-dividends.

The payment of complementary dividends is an integral part of AmBev's long-term strategy of continuously enhancing shareholder value by combining an efficient use of its strong cash flow generation with a wise management of its capital structure, as evidenced by its investment grade rating in local currency. After investing in core activities that increase cash generation to debt holders as well as profits to shareholders, the Company also remains committed in returning cash through dividends and share buybacks. Moreover, the wise combination of: 1) dividend payments above the minimum defined in its by-laws; 2) continuous share buy-back programs; and, 3) proactive debt rollover, is also of paramount importance to assure the most efficient capital structure for the Company.

As of June 30, 2003, AmBev's consolidated net debt was R$ 2,626.6 million (including the impact of the proportional consolidation of Quinsa's debt and cash) while its consolidated gross cash flow generation (2H02 EBITDA based on AmBev's EBITDA as reported in 2002, while figures for 1H03 include the impact of the proportional consolidation of AmBev's investment in Quinsa) over the last twelve months reached R$ 2,953.0 million, evidencing that its net debt to EBITDA ratio was below one (approximately 0.9), well below the Company's two times target range. Taking into consideration the payment of interest on own equity and dividends totaling R$ 717.7 million that we are announcing today, the Company's net debt to EBITDA ratio would only modestly exceed one, still well below AmBev's target range.