InBev Reports Growth Across All Zones

08/09/06 InBev the world’s leading brewer by volume, has announced strong results for the second quarter of 2006. Organic beer sales volume grew +5.7% in 2Q06 versus the second quarter of 2005 (2Q05) with all Zones achieving volume increases, while our global brands volume grew by +6.6%. Revenue increased organically by +8.3% yoy, as a combination of good volume growth and effective revenue management initiatives; the latter drove an organic +2.5% increase in revenue per HL yoy.

Second quarter results demonstrated progress in all Zones, and all Zones reported volume and EBITDA growth, yoy. In North America InBev increased spending behind its brands, and at the same time continued to strongly control costs, overall leading to margin expansion. Latin America delivered a solid performance, boosted by robust top-line growth and investments to build for future profitability. The Western Europe business responded well to highly competitive market conditions, by making progress in implementing best practices in sales activities, driving volume growth, and working hard on reducing costs and expenses. In Central & Eastern Europe the EBITDA margin expansion resulted from top-line growth and good fixed cost management. Revenue growth and an ongoing cost focus led to margin expansion in Asia Pacific.

“These second quarter results confirm progress along the journey that we have set for ourselves, to be the best, the most profitable company in the beer business. We believe that our people, and our culture of ownership and focus will continue to be the main drivers in that journey. Despite the progress we have achieved in the first half of this year, we are clearly not there yet. We are putting major efforts into market execution programs, brand building know-how and cost management programs that are not yet up to speed in all parts of our business. That for us though is a sign of the many opportunities that we still have within our company to unlock value,” said Carlos Brito, InBev’s CEO.

Total consolidated volume grew by +5.9% in 2Q06 versus 2Q05 (beer +5.7%; soft drinks +7.3%).

Global brands volumes were up +6.6% for the second quarter, continuing a consistent pattern of growing ahead of InBev’s consolidated beer volume. Brahma volumes increased +3.1%, driven mainly by Brazil, and growth in markets where we have recently introduced Brahma, especially Russia. Volumes of Stella Artois improved +7.4%, as the brand continued to demonstrate very solid growth in North America, good development in Eastern Europe and Latin America, and some volume recovery in the UK. Beck’s delivered a +14.3% volume increase as a result of ongoing growth in Germany, US, and Central & Eastern Europe. Leffe performed well in its key markets in 2Q06, with volume growth of +14.2%.