SIA "SPV Distributor" Submits Notification Regarding Merger of Market Participants to the Competition Council of Latvia

RIGA, March 27, 2009 – "SPI Group" owned holding company SIA "SPV Distributor" has submitted a Notification regarding merger of market participants to the Competition council of Latvia regarding planned merger with SIA "S. Alko", SIA "MONO M", SIA "L.D.V" and SIA "S.D.V". Planned merger is in accordance with "SPI Group" growth strategy, which foresees broadening of beverage portfolio offered by its companies and strengthening of it distribution network in the Baltics.

"Current situation in the wholesale market of imported alcoholic beverages is volatile. Rapid increases of VAT and excise taxes have sharply reduced sales volumes of both imported and locally produced alcoholic beverages. Increased consolidation of market participants is the only way for the survival in the current economic climate," says Kārlis Andersons, Authorized representative of SIA "SPV Distributor" and Chairman of the Management Board of AS "Latvijas balzams". "The planned merger will also allow all the involved companies to increase efficiency of administrative and logistics functions, thus creating opportunities for offering beverages with lower prices."

About participants of the planned merger

SIA "SPV Distributor" is a holding company which owns alcoholic beverages wholesale company SIA "AV&D" and alcoholic beverages importer SIA "Interlat".

SIA "MONO M" and SIA "L.D.V." are importers if alcoholic beverages. SIA "S. Alco" is a wholesaler of imported alcoholic beverages. SIA "S.D.V." is a holding company which owns Estonian alcoholic beverages wholesale company OU "Divinum".

SIA "MONO M" and its related companies in Latvia distribute such beverages as "Martini", "Otard", "Remy Martin" and others. In 2008 State Revenue Service ranked SIA "L.D.V." and SIA "MONO M" as the 16th and the 17th largest alcoholic beverages producers and importers in Latvia. Owners of theses companies regard the planned merger deal as a successful business transaction.

About "SPI Group"

"SPI Group" is an international holding company that was established in 1997. Main areas of company's activities are production and sales of alcoholic beverages, agriculture and real estate project development. "SPI Group" is owner of over 130 trade marks of alcoholic beverages, including famous "Stolichnaya" and "Moskovskaya". More information at: http://www.spi-group.com/

About AS "Latvijas balzams"

AS "Latvijas balzams" was founded in 1900 and today is the largest producer of alcoholic beverages in the Baltic States. Company is one of the most important exporters in Latvia, and annually increases its export volumes. AS "Latvijas balzams" produces over 130 different alcoholic beverages out of which almost 53% are beverages with low alcohol content. Company's products are exported to over 30 countries and on export contract for "SPI Group" to over 80 countries worldwide. The major shareholder of AS “Latvijas balzams” is “SPI  Distilleries. B.V.” which owns 89,52% of shares. More information can be found at: www.lb.lv

Kārlis Andersons,

Authorized Representative of SIA "SPV Distribution" and

Chairman of the Management Board, AS "Latvijas balzams"

For additional media inquiries:

Ingars Rudzītis, PR consultant

M: + (371) 2617 6688

E: ingars.rudzitis@sab.lv