Issue of Equity

Blavod Extreme Spirits PLC
07 March 2006


Blavod Extreme Spirits PLC
7 March 2006

Issue of Equity

Blavod Extreme Spirits plc ('the Company') announces that the Board has, today,
issued and allotted a total of 4,263,823 new Ordinary Shares through a Placing
to institutional investors at a price of 18.5p per share. The total number of
shares in issue is now 71,379,700.

The purpose of this Placing is to provide the Company with adequate working
capital resources which, when combined with the Company's banking facilities,
means the Company will not need to use the Headstart facility (the terms of
which were announced on 29 November 2005) for a minimum of twelve months.

Jeff Hopmayer, Blavod's CEO said:

'Turnover for January and February, along with initial orders received in March
indicate strong trading over last year and when combined with the fact the 4th
quarter is typically the slowest time period for our industry, it shows our
continued growth in the US and International market remains very promising.'

Application will be made for the new shares to be admitted to AIM and trading in
the new shares is expected to commence as soon as practicable.


Enquiries:

Jeff Hopmayer, Blavod                001 615 771 911
Keith Williams, Brewin Dolphin       0113 241 0130
Tim Robertson, Cardew Group          020 7930 0777



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