E-Malt.com News article: 2413

Quilmes Industrial (Quinsa) S.A. announced on March 26 that, following the substantial completion of the market purchase program previously authorized by the Company, its Board of Directors has authorized the purchase of additional American Depositary Shares ("ADS"), each of which represent 2 Class B shares. Specifically, the board authorized the expenditure of up to an additional US$ 50 million to make market purchases of ADSs, as, when and if market conditions are appropriate, according to PRNewswire.

Based on the market price of Quinsa's ADSs on March 24, 2004, the new program authorized by the board would allow Quinsa to purchase up to approximately 2,716,000 ADSs (or 8.9% of Quinsa's outstanding Class B shares (calculated net of treasury stock)). The actual number of ADSs purchased by Quinsa will depend on the prices at which the purchases are made. Quinsa's capital stock (net of Treasury Stock) currently consists of 61,004,905 Class B Shares and 634,581,688 Class A Shares. Quinsa's management stated that the additional repurchase program is a result of the board's intention to acquire shares at prices that represent an attractive investment for the company and its shareholders.

Furthermore, the Company has continued to purchase its Class A shares from time to time through the Luxembourg Stock Exchange, pursuant to the authorization provided at the Annual General Shareholders' Meeting held on June 27, 2003.

The Quinsa Class B Shares are listed on the Luxembourg Stock Exchange and on the New York Stock Exchange in the form of ADSs. The Quinsa Class A Shares are listed on the Luxembourg Stock Exchange.

Quinsa is a Luxembourg-based holding company that controls 87.6 percent of Quilmes International (Bermuda) ("QIB"). The remaining 12.4 percent stake is held by Beverage Associates (BAC) Corp. ("BAC") and by Companhia de Bebidas das Americas -- AmBev ("AmBev").

Quinsa, through QIB, controls beverage and malting businesses in five Latin American countries. Its beer brands are strong market leaders in Argentina, Bolivia, Paraguay and Uruguay and have a presence in Chile. Further, pursuant to the Company's strategic alliance with AmBev, it has entered into license and distribution agreements to produce and sell the AmBev brands in Argentina, Bolivia, Paraguay and Uruguay. Similarly, under the agreements, AmBev may produce and distribute Quinsa's brands in Brazil.

The Company also has bottling and franchise agreements with PepsiCo, and thus accounts for 100% of PepsiCo beverage sales in Uruguay and more than 80% of PepsiCo beverage sales in Argentina.

Quinsa's Class A and Class B shares are listed on the Luxembourg Stock Exchange. Quinsa's American Depository Shares, representing the Company's Class B shares, are listed on the New York Stock Exchange.



30 March, 2004