AGM Statement & Acquisition

Blavod Black Vodka PLC
3 October 2001


                            BLAVOD BLACK VODKA PLC

                                AGM Statement

                    New Distribution Agreement with Babco



Blavod Black Vodka plc, which owns and sells Blavod, a unique premium vodka
brand which is black in colour, announces that it has signed a 10 year
agreement to market Babco Europe's range of premium products in the UK.



The 10 year agreement with Babco Europe further extends the range of premium
products which Blavod distributes.  In May Blavod assumed responsibility for
the import and distribution of Domaines Barons de Rothschild wines in the UK
and this agreement extends the Group's premium product range.



Under the terms of the agreement Blavod will acquire Babco UK Limited's
distribution network and the rights to Agwa - an energy spirit, Mickey Finn -
a flavoured schnapps and TJ's Rosas - a tequila cream liqueur.



The businesses are complimentary to each other.  Blavod will pay £300,000 and
issue an initial 450,000 shares to acquire the rights.  Further shares up to a
maximum 950,000 will be allocated dependent upon performance, ie the
contribution post marketing and promotion, over the next 13 months.  Beside
bringing valuable, skilled personnel into the business, it is expected that
the Babco brands will make a useful contribution to operating profits within
the first year.



At today's Annual General Meeting the Chairman, Allan Shiach made the
following comments:



'The Company continues to make progress and the deal we have announced today
with Babco Europe underlines our commitment to grow the Group and to move into
profitability.



'We are already seeing the benefits from the agreement with Domaines Barons de
Rothschild wines, which makes a very useful contribution to overheads and we
expect the new agreement to further defray costs whilst at the same time
widening the appeal of the Company to retail outlets.  In addition, we expect
the extension of the product range to bring forward the point when we move
into profitability.  The broader range of premium products extends and
strengthens the market position of Blavod vodka.



'Since the year end we have announced a distribution contract for Blavod in
Brazil, which is performing well, and we are also making progress in the
restructuring of our US operations.  We have appointed new salesmen, increased
the promotional activities and introduced new initiatives. The agreement with
Babco will further enhance our marketing whilst increasing our premium
offering.



'The Board is confident that we are making steady progress towards the
objectives to which we aspire.'

                                                                3 October 2001
ENQUIRIES:

Blavod Black Vodka plc                                    Tel:    [phone]
Richard Ambler, Chief Executive

College Hill                                              Tel:    [phone]
Michael  Padley
Clare Warren



Copies of this report have been sent to shareholders and are available at the
Company's Registered Office: 202 Fulham Road, London, SW10 9PJ.