Supplier Contract Negotiations

Blavod Wines and Spirits plc (the 'Company')
13 August 2010

Supplier Contract Negotiations

The Company announces that it has received notification from the suppliers of
Cockspur Rum that they intend to invoke early release clauses in their supply
agreement with Blavod unless alleged breaches in this agreement are rectified
within 45 days.

The Company believes that it is not in breach of this agreement and is in
negotiations to seek a resolution to this situation.

Further announcements will be made when appropriate.

Contacts:

Blavod Wines and Spirits plc
Richard Ambler (Managing Director) 0207 352 2096

Brewin Dolphin Corporate Advisory & Broking (Nominated Adviser)
Neil Baldwin 0845 213 4726



[HUG#1437980]








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Source: Blavod Wines & Spirits plc via Thomson Reuters ONE