MOSCOW, May 23, 2003 - SUN Interbrew Limited (Lux: SUNB5-LX), a leading brewer in Russia and Ukraine, wishes to announce its financial results for the first quarter ended 31^st March 2003.

Results

Operational Highlights

The momentum achieved in the second half of 2002 has continued into 2003 and the following achievements have been made:

·         Volume growth in Russia of 8% versus a market decline of 5%. The market share improved from 11.8% in the first quarter 2002 to 13.2% in the first quarter 2003.

·        Market leadership in Ukraine improved with volume growth of 18% and a market share increase from 31.1% to 34.9%.

·         Organic EBITDA result, excluding embedded foreign exchange movements, increased to ?16.1m from ?8.0m.

·        Successful launch of new PET variants (Tolstiak^® 1L PET +Regional Brands).

·        Launch of PIVOPACK^® nationally in Russia brings substantial quality improvement to the PET segment enabling the segment to be expanded to the core and local premium segments.

·        Significant cost reductions across the business.

Financial Highlights

FINANCIAL PERFORMANCE IN THE FIRST QUARTER

The headline results for the first quarter of 2003 were adversely affected by foreign currency impact from the depreciation of local currencies versus the Euro.

Net sales per hl decreased due to currency impact.

Gross margins decreased due to the changed sales mix, in particular the strong growth of the lower margin PET segment and value brands.

Reduction in Cost Base

Substantial fixed cost reductions were achieved again during the quarter versus the same quarter last year.

Selling, marketing and distribution costs in the first quarter were ?25.5m versus ?27.5m in the same quarter last year. Marketing costs were lower than last year due to phasing differences, but commercial costs have grown particularly in Ukraine as distribution growth continues in that market.

The average distribution cost per hl was almost ?1 per hl lower in the quarter compared to the first quarter of 2002.

Total sales and marketing costs for the quarter represents 17% of Net Turnover, but this will reduce as we move into the summer season.

General and administration costs for the 1st quarter were ?3m lower than for the same quarter in 2002. It should be noted that the first quarter 2002 contained some one time reorganization costs but there is still a substantial cost reduction in the ongoing cost base. Costs in Ukraine are increasing in line with the growth of the business there.

RUSSIA

Total volumes of beer sold in Russia in the first quarter were 1.77m hl versus 1.64m hl in the first quarter of 2002, an increase of 8% in a market which declined by 5%.

Tolstiak^®sales volumes grew by 46% over the same quarter last year as a result of the brand relaunch, new 1 litre PET variant and improved advertising focusing on improving the quality image perception.

Klinskoye^®and Sibirskaya Korona^® sales volumes were weaker but with the launch of PIVOPACK^® and the new custom bottle, recent sales volumes have been very encouraging. In addition both core brands have benefited from new liquid varieties such as Redkoye and Krepkoye launched this year.

Stella Artois^®sales volumes continue to grow every quarter.

Staropramen^®has been launched and has been well received with positive feedback from the trade and consumer.

Sales volumes, m Hl

Market Share Growth – 2002 plus First Quarter 2003 (Average for the period)

UKRAINE

Sales volumes of beer in Ukraine increased from 0.71m hl in the first quarter of 2002 to 0.84m hl in the first quarter of 2003, an increase of 18.4%, well ahead of the market growth in the quarter of 5.4%.

Sales volumes, m Hl

Market Share Growth – 2002 plus First Quarter 2003 (Average for the period)

The growth achieved is due to continued success in the following brands:

–        The growth of the Chernigivske^® brand by 51%

–        Excellent growth of Stella Artois^® at 116%

SUMMARY AND OUTLOOK

We have made an encouraging start to the year with strong performances in both Russia and Ukraine.  Underlying this performance is a much improved marketing and commercial performance supported by a faster route to market by the operations and marketing teams.

Whilst the strength of the Euro is likely to continue to affect our headline results, the underlying performance will continue to improve as we build volume back into our business and we also introduce higher margin products into our portfolio. The focus on cost reduction will continue in order to support our margin development.

ENDS

For further information Contact:

SUN Interbrew Limited

Joseph W.Strella, Chief Executive Officer

Alan Hibbert, Chief Financial Officer                  +7 (501) 960-2360

Financial Dynamics

Ben Foster                                                        +44 (20) 7269 7247

Caroline Ledosquet                                            +44 (20) 7269 7233

Notes to Editors:

SUN Interbrew Limited is the second largest brewer in Russia and the largest brewer in Ukraine.  The company is a strategic partnership between Interbrew, one of the largest brewers in the world, and the SUN Group, operating in the region since 1958, and in the beer sector of Russia and CIS since the beginning of 1990s.

The company’s main brands are Stella Artois^®, Staropramen^®, Klinskoye^®, Sibirskaya Korona^®, and Tolstiak^® in Russia, and Stella Artois^®, Chernigivske^®, Rogan^®, Taller^® and Yantar^® in Ukraine.

SUN Interbrew is a public company registered in Jersey, whose shares are listed and traded on the Luxembourg, Frankfurt and Berlin exchanges.

SUN Interbrew Limited and Subsidiaries
Condensed Consolidated Statements of Operations
For the Three Months Ended March 31, 2003 and 2002
(Euros in thousands, except per share amounts)

(Unaudited)

See Notes to Condensed Consolidated Financial Statements.

SUN Interbrew Limited and Subsidiaries
Condensed Consolidated Balance Sheets
As of March 31, 2003 and December 31, 2002
(Euros in thousands)

See Notes to Condensed Consolidated Financial Statements.

SUN Interbrew Limited and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2003 and 2002
(Euros in thousands)

(Unaudited)

See Notes to Condensed Consolidated Financial Statements.

Notes to Condensed Consolidated Financial Statements

For the Three Months Ended March 31, 2003 and 2002

The accompanying unaudited, condensed, consolidated financial statements of SUN Interbrew Limited and Subsidiaries (the “Company”) contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the Company’s consolidated financial position as of March 31, 2003, and the consolidated results of operations and cash flows for the three months ended March 31, 2003 and 2002.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles that are generally accepted in the United States (“US GAAP”) have been condensed or omitted.  It is suggested that these condensed, consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s December 31, 2002 audited financial statements.  The results of operations for the three months ended March 31, 2003 and 2002 are not necessarily indicative of the operating results to be expected for the full year.

The majority-owned subsidiaries incorporated under the laws of the Russian Federation and Ukraine (the “Russian subsidiaries” and “Ukrainian subsidiaries”) maintain accounting records and prepare their financial statements in Russian rubles and Ukrainian Hryvnas in accordance with the requirements of Russian and Ukrainian accounting and tax legislation. The accompanying financial statements differ from the financial statements prepared for statutory purposes in Russia and Ukraine in that they reflect certain adjustments, not recorded in the accounting books of the Russian or Ukrainian subsidiaries, which are appropriate to present the financial position, results of operations and cash flows in accordance with US GAAP.

Significant Transactions

In January 2003, the Company announced the offering of 7.674.466 Class A Shares on a pro rata basis to the holders of Sun Interbrew Class A Shares. Majority of the shares were acquired by Interbrew. Proceeds from share offering were used for repayment of the Interbrew loan initially issued to cover part of Rogan Brewery acquisition cost.

In January 2003, an amendment to the income tax legislation in Ukraine has been enacted according to which the income tax rate in Ukraine will be reduced from 30% to 25% effective from January 1, 2004. The Company started to calculate deferred tax on temporary differences related to long-term assets and liabilities using the new tax rate.