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Non-Tech : Central European Distribution Corporation (CEDC) -- Ignore unavailable to you. Want to Upgrade?

To: Troy Suarez, Ph.D. who wrote (2)	8/27/1998 9:16:00 AM
From: Troy Suarez, Ph.D.	Respond to of 3

Central European Distribution Corporation Reports Record Second Quarter Earnings and Revenues; Announces New Exclusive Brands ALEXANDRIA, Va., Aug. 24 /PRNewswire/ -- Central European Distribution Corporation, (Nasdaq: CEDC), today announced record second quarter earnings of $285,000, or $0.16 per share on a fully diluted basis for the three month period ending June 30, 1998, compared to $82,000, or $0.05 per share on a fully diluted basis for the same period in 1997. Total revenues, also a record, increased 27 percent to $12.10 million during the quarter ended June 30, 1998 from $9.55 million for the second quarter 1997. For the six-month period ended June 30, 1998, earnings increased over 600 percent to $531,000, or $0.30 per share on a fully diluted basis, from $75,000, or $0.04 per share on a fully diluted basis in the six months ended June 30, 1997, as after-tax margin on revenue increased to 2.4 percent from 0.4 percent. Total revenues increased 25 percent to $21.89 million from $17.52 million during the same period in 1997. On July 27, 1998, CEDC completed an initial public offering of 2,000,000 shares of common stock increasing total outstanding shares from 1,780,000 (used to calculate EPS) to 3,780,000 shares. CEDC also announced today that it has signed new contracts for exclusive distribution in Poland for Black and White, VAT 69 and White Horse Scotches, from United Distillers and Vintners, Camus Cognac, and DeKuyper Liqueurs. In addition to the alcoholic beverage line, CEDC has been awarded the exclusive distribution rights for Dunhill Cigars and Warp 4, Poland's second leading energy drink. William V. Carey, Chairman, President and CEO, commented, "Our second quarter results reflect the leveraging of our national distribution system, the continued sales increases in our exclusive imported beer brands, and the benefits of economies of scale. We have been very pleased with the demand for both our imported and domestic products in the current year. These factors should continue to benefit the company's core business, which is expected to fuel strong growth, to both the top and bottom line." Mr. Carey continued, "We are also very excited about the addition of the new exclusive imported spirits as well as the other non-alcohol products. These new spirit brands will enhance our already strong spirit portfolio providing additional revenue and earnings growth. This is consistent with our strategy to continue to add exclusive high margin products to take advantage of our national distribution system." Also today, CEDC announced the appointment of Evangelos Evangelou as Chief Operating Officer, a previously unfilled position. Mr. Evangelou comes to CEDC after five years of experience in Poland with Louis Company, a multinational firm that operates food and beverage concessions in international airports, including Warsaw, and 10 years in the food and beverage business. He will oversee the day to day activities of the company reporting to the CEO. Mr. Carey further stated, "CEDC is fortunate to have a new COO with vast experience in the rapidly growing Polish consumer market as well as strong management experience within a large firm. The outlook for the Polish alcoholic beverage market continues to be very dynamic, particularly as it relates to our imported brands. We expect to continue to capitalize on the changing consumer preferences in Poland by adding additional high margin exclusive brands and gain market share with additional penetration of the domestic vodka business. Utilizing funds from the IPO, we are already receiving substantial discounts from domestic vodka producers for cash payments which increases our gross margin on vodka and gives us the ability to gain competitive market share." CEDC is the leading importer and distributor of alcoholic beverages on a nationwide basis in Poland, a four billion-dollar market at the retail level in 1997. The Company operates eight regional distribution centers in major urban areas throughout Poland, one of Europe's fastest growing economies, from which it distributes many of the world's leading brands of spirits, wines and beers, including brands such as Jim Beam, Sutter Home, Miller, Foster's, Corona, and Guinness. Except for the historical information contained herein, the matters discussed in this news release are forward looking statements that involve risks and uncertainties that are detailed from time to time in the Company's SEC reports, including but not limited to the discussion in the Management's Discussion & Analysis included in the Quarterly Report on Form 10-Q for second quarter 1998.