Interims/Acquisition-Summary

Blavod Black Vodka PLC
08 December 2003

NOT FOR RELEASE IN THE UNITED STATES

8 December 2003: For immediate release

      Blavod Black Vodka planned acquisition of Extreme in all share deal

                  Planned Placing and Open Offer to raise £8m

             Interim results show continued improvement in trading

Summary

In separate announcements today, Blavod Black Vodka, the AIM-listed drinks
group, said:

•    It is to acquire the US spirits company, Extreme Beverage, for an initial
     all share consideration equivalent to 40% of the enlarged issued share 
     capital (prior to the fundraising).

•    Blavod has also announced a proposed Placing and Open Offer to raise
     approximately £8m. This will be used to strengthen the balance sheet of the
     Enlarged Group and to fund the costs associated with sales and marketing,
     capital expenditure and trade mark protection, as well as funding debt 
     repayment of approximately $1 million and general working capital 
     requirements.

•    The acquisition, as well as the Placing and Open Offer, will be subject
     to the approval of Shareholders, with an EGM due to be held in January 
     2004.

•    Also today, Blavod announced interim results for the six months ended 30
     September 2003. These show a loss of £247,000 (2002 loss £492,000), on 
     turnover of £557,000 (£634,000). Gross profit margins grew to 36.5% (34%). 
     The Board is confident that, in the second half of its financial year to 
     31 March 2004, Blavod will come close to achieving positive cash flow.

•    The enlarged company will change its name to Blavod Extreme Spirits plc.
     Jeffrey Hopmayer, President of Extreme, will become Chief Executive, with 
     Allan Shiach remaining Non-Executive Chairman.

•    Evolution Beeson Gregory Limited has been appointed as adviser and broker
     to the company.

Richard Ambler, Chief Executive of Blavod and proposed Managing Director:
International of the Enlarged Group, said: 'This promises to be an excellent
deal for both businesses, one that will allow us to build on our strengths as a
niche player in global markets. The US is a crucial market for vodka and the
merger will allow Blavod to continue to make progress there. Extreme's US
distribution capability, its relationship with its US distributors and its
growing profile in the US will enhance our competitive position considerably.'

Jeffrey Hopmayer, President of Extreme, said:

'We look forward to joining with Blavod to bring black vodka to America. The new
management team blends industry experience with entrepreneurial flair and a
proven track record in creating international brands. Together, we will have a
portfolio of fast-growing brands and international distribution capability with
local sales presence in the critical US market, the largest vodka market outside
Eastern Europe. This, along with our marketing expertise and financial strength,
gives us a great opportunity to capture a share of a global market.'

For further information:

Craig Breheny, Katya Reynier, Laura Cummings      Brunswick    020 7404 5959


Notes to editors

Blavod

Blavod launched its eponymous black vodka in 1998 and has an established UK
sales network with distribution in several major retail outlets, including Asda,
Sainsbury's and Tesco. Its international distribution network has expanded with
success in the worldwide duty free and other key markets including the Russian
Federation.

Since its flotation in 2001, case sales of Blavod vodka have grown by
approximately 63%, its production costs per case and overheads have each
decreased by approximately 30% and gross margins have increased with higher
volumes.

Blavod shares were suspended from trading on AIM on 17 September 2003 and will
remain suspended pending finalization of the transaction.

Extreme

Founded in 2001, Extreme, based in Nashville, Tennessee, is the owner of Players
Extreme, one of the fastest growing brands in the US spirits market. Extreme
owns the Players Extreme Vodka, Players Extreme Flavoured Vodkas, Players
Extreme Rum, Players Extreme Flavoured Rums and Players Extreme Gin brands.
www.extremebeverage.com

This announcement does not constitute an offer to sell any securities in the
United States.  The issue of the ordinary shares in connection with the
Acquisition and the offer and sale of Ordinary Shares in the Placing and Open
Offer have not been, and will not be, registered under the US Securities Act of
1933, as amended, and such ordinary shares may not be offered, sold or delivered
to, nor may the Open Offer be accepted by, any US Person (as such term is
defined under Regulation S under the Securities Act).


                      This information is provided by RNS
            The company news service from the London Stock Exchange