Merger of Market Participants


Competition Council of Latvia has Approved Planned Merger of Market
Participants Submitted by SIA "SPV Distributor" 

RIGA, July 8, 2009 - Holding company SIA "SPV Distributor", which is a part of
"SPI Group",  has received approval from the Competition Council of Latvia
regarding its notification of planned merger with SIA "S. Alko", SIA "MONO M",
SIA "L.D.V" and SIA "S.D.V". 

"We highly regard this positive decision by the Competition Council. It is the
right step towards strengthening competitiveness of local companies. During
these last few months, since we submitted our notification of merger, the worst
possible development scenario has taken place in Latvia's alcoholic beverages
market. Government has rapidly changed taxes a few times; recession has reduced
purchasing power of population; retail chains continue to concentrate their
purchasing power; share of illegal alcohol has increased noticeably," says
Kārlis Andersons, Authorized representative of SIA "SPV Distributor" and
General Director of AS "Latvijas balzams". 

"In this situation, when organic growth of business is critically impaired,
merger of market participants is the only way how to survive this recession and
that's why we will continue negotiations with Competition Council regarding
sparkling wine segment where we have different opinions," continues K.
Andersons. 

The 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. 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 
General Director, AS "Latvijas balzams"


For additional media inquiries:
Ingars Rudzītis, PR consultant
M: + (371) 2617 6688
E: ingars.rudzitis@sab.lv