E-Malt.com News article: 2378

Brazil: Companhia de Bebidas das Américas – AmBev, the world’s fifth largest brewer and Brazil’s leading beverage company, announced that its Board of Directors approved on March 22 a new share buyback program limited to R$500 million. The program is valid for a period of 60 days in accordance with CVM (Brazilian Securities and Exchange Commission) Instruction 10/80. Should the total amount used to acquire shares be below the established limit over the next 60 days, the Board of Directors may continue to renew the buyback program for successive 60-day periods.

Over the next 60 days, AmBev may repurchase up to 1,408,728,295 preferred shares, representing 6.58% of the preferred shares free float (i.e. 21,420,871,374 preferred shares).

Through the frequent issuance of new share buyback programs, AmBev keeps its policy 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 profits to shareholders, the Company also remains committed in returning cash to shareholders through share buybacks and dividends.

A program to acquire call options and issue put options linked to AmBev’s shares was also approved, in accordance with CVM Instruction 390/03, respecting the limits set for the overall program. The volume of options, held or issued, multiplied by their respective strike prices plus the aggregate amount of cash share repurchases is limited to R$500 million.

The amount of shares to be kept in treasury may not surpass the equivalent of 10% of the float of each share class, in compliance with article 3 of CVM Instruction 10/80, amended by CVM Instruction 268/97, and with article 3, 1st paragraph, of CVM Instruction 390/03. The Company informs that it has not issued nor holds options linked to its own shares currently.

Further information on the share buyback, including the brokers authorized to carry on the operation, is presented in the Minutes of the Meeting of the Board of Directors, available in our Investor Relations website.


23 March, 2004