Buenos Aires Embotelladora S.A. Reports Reduced Second Quarter Sales Volume in Argentina.

BUENOS AIRES, Argentina--(BUSINESS WIRE)--March 31, 1995--Buenos Aires Embotelladora S.A. (BAESA; NYSE: BAE; BSE: BAES) today announced that it expects lower unit sales volume in its Buenos Aires franchise area during the second quarter of fiscal 1995 (ended March 31, 1995), compared to the second quarter of fiscal 1994.

As a result of adverse economic conditions relating to Argentina's currency and banking system coupled with unusually rainy weather conditions in Argentina, consumer spending, as well as the soft drink industry in Argentina, suffered during the early months of calendar 1995. Due to these factors, BAESA expects a decrease of approximately 15% in case sales volumes in Buenos Aires during the second quarter of fiscal 1995 as compared to the second quarter of fiscal 1994. The decrease in case sales mainly occurred during the second half of February and early March 1995. Despite the weakening sales volumes, BAESA has experienced certain indications of strengthening volumes and improved market conditions in Argentina during late March 1995.

On December 1, 1994, BAESA commenced bottling operations in several southern states of Brazil. In the Southern Brazil franchise, BAESA's sales volume during the second quarter of fiscal 1995 is expected to be over 100% higher than the sales volume attained by the previous franchise holder during the comparable period in 1994.

In addition to the decreases in volume in Argentina during the second quarter of fiscal 1995, BAESA has experienced significant increases in the cost of certain raw materials. Specifically, increases in the cost of aluminum cans, resin for the production of plastic bottles, and sugar have contributed to approximately $5 million of additional raw material costs. BAESA has been unable to pass on these increases in costs to consumers as a result of the economic conditions affecting Argentina.

In addition, BAESA has entered into an agreement in principle to acquire certain assets of two bottling facilities in the Brazilian States of Rio Grande do Sul and Santa Catarina, which are located in BAESA's existing Brazilian franchise territories. BAESA expects to commence operations at these two facilities during the third quarter fiscal 1995.

BAESA expects to announce its second quarter financial results in early May 1995.

BAESA is one of the largest Pepsi-Cola bottlers in the world, with the exclusive Pepsi and Seven-Up franchises for the Buenos Aires metropolitan area and other regions in Argentina, as well as Chile, Uruguay, and Costa Rica. Effective December 1, 1994, BAESA also became the exclusive Pepsi and Seven-Up bottler in certain southern states of Brazil, including the metropolitan areas of Sao Paulo and Rio de Janeiro. In May 1993, BAESA became the first company from Argentina to list its securities on the New York Stock Exchange.

CONTACT: BAESA, Buenos Aires

Rafael Farace, 011/541-925-3079

or

BAESA, Florida Division

C. Leon Timothy, 407/347-3850

or

Dewe Rogerson Inc.

Stuart Carlisle or Lisa Jospa, 212/688-6840