Pernod Ricard to acquire Seagram Spirits & Wine jointly with Diageo

PARIS, December 22 (PROTEXT) - Pernod Ricard announces thatit has, jointly with Diageo, signed an agreement to purchase theSeagram Spirits and Wine business from Vivendi Universal for US$8.15 billion in cash, on a debt free basis. Pernod Ricard willcontribute approximately US$ 3.15 billion (Euro 3.7 billion) or38.6( of the total purchase price.

Pernod Ricard and Diageo will split the Seagram businessbased on the Framework Agreement signed between the two companiesas previously announced.

The joint acquisition is subject to the consent of therelevant competition authorities. The necessary filings have beenprepared and will be submitted shortly.

Patrick Ricard, Chairman and CEO of Pernod Ricard, declared,"I would like to say how excited we are by this acquisition whichrepresents a unique opportunity to redefine the industry world-wide. I believe that Seagram's magnificent portfolio of brandshas a distinguished heritage and a great future within our Group.Together with Diageo, we at Pernod Ricard look forward to workingwith the employees of Seagram to realise the strong potentialthat exists to grow our enlarged business."

Brands to be acquired by Pernod Ricard

The main brands to be acquired by Pernod Ricard includeChivas Regal, Glen Grant, Royal Salute and Glenlivet whiskies aswell as Martell Cognac and Seagram's Extra Dry gin. Pernod Ricardwill acquire several leading national brands in Latin America,Asia and Europe. In addition Pernod Ricard will own Seagram'sScotch whisky manufacturing and bottling facilities in Scotland.

The brands acquired by Pernod Ricard reported volumes ofapproximately 14 million cases and sales of approximately US$ 1.2billion for the fiscal year 2000.

The price excludes any value for the distribution of Absolutvodka and Mumm champagne.

Enhanced global reach

Historically, Pernod Ricard has built a world class portfoliothrough the acquisition and development of international brands(Jameson, Havana Club and Jacob's Creek) and regional brands(Larios, Clan Campbell, Wild Turkey and Ramazzotti).

Prior to this transaction, Pernod Ricard was already thefifth largest distilled spirits company world-wide with distilledspirits and wine being at the core of the Pernod Ricard business.

The purchase of Seagram adds a number of well known brands toPernod Ricard's portfolio, considerably improving the Group'sexisting presence in North America, Latin America and Asia andgives Pernod Ricard, as a major industry player, critical mass ona world-wide scale. Pernod Ricard's enlarged Scotch whiskyportfolio means that the Group will become the number 2 playerworld-wide in a key category for the spirits industry. ChivasRegal is the world-wide leader in the deluxe category and one ofthe few truly global brands in the spirits industry; itsacquisition brings Pernod Ricard a unique opportunity to developthe brand's full potential. The addition of Chivas Regal toPernod Ricard's distribution network will give added leverage tothe whole portfolio.

With the acquisition of Martell and its existing Bisquit andRenault brands, Pernod Ricard becomes the number 2 player in thecognac market. Martell is an exceptionally prestigious brand withmajor strengths in the U.K and South-East Asia. FurthermoreMartell complements Chivas Regal in the de luxe category ofspirits. In Portugal, the addition of Macieira brandy and otherlocal brands will create the number 2 of the spirits market.

The acquisition of Seagram's Extra Dry gin strengthenssignificantly Pernod Ricard's presence in the USA. Likewise theacquisition of Natu Nobilis, Orloff and Montilla in Brazil willconsiderably boost Pernod Ricard's presence in Latin America. InIndia, Royal Stag is the leading premium whisky in the market.

Overall, Pernod Ricard will emerge from the transaction asthe third largest global distilled spirits company in the worldwith an impressive brand portfolio including 11 brands featuredin the Impact International (February 2000) list of top 100global brands.

Non strategic brands

Pernod Ricard and Diageo will jointly supervise the disposalof Seagram's non strategic brands.

Financing

Pernod Ricard will finance this acquisition through committedborrowing facilities. A refinancing programme has been arranged,including the sale of financial assets and non-core business andthe issue of a convertible bond.

Pernod Ricard management expects the transaction to beearnings enhancing in year one.

Pernod Ricard was advised on this acquisition by J.P. Morganand Société Générale. The legal advisors were Macfarlanes,Debevoise & Plimpton and Arthur Andersen advised on tax matters.

For further information, please contact

Alain-Serge Delaitte 33 1 40 76 77 12

Lilias Ashford, Citigate Dewe Rogerson: 44 468 025 997

Presentation and slides available on our website: www.pernod-ricard.com142, BOULEVARD HAUSSMANN - 75379 PARIS CEDEX 08 -TELEPHONE: 33 140 76 7712 - FAX : 33 1 45 62 59 40- SOCIETE ANONYME AU CAPITAL DE1.127.733.200F- R.C.S. PARIS B 582 041 943

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