Pernod Ricard confirms that it is close to reaching an agreement to sell its soft drinks activity to Cadbury Schweppes. A special works council has been called at Orangina-Pampryl to present the project.

The proposed transaction is valued at Euros 700 million. The transaction comprises the Orangina, Pampryl and Yoo-Hoo brands and associated businesses, covering continental Europe, North America and Australia. In addition, Pernod Ricard will have an option to sell to Cadbury Schweppes rights for all other countries, which represent approximately 5% of the total activity's profitability.

The proposed transaction is dependant upon regulatory approval and requires the process of consultation with the works council to be completed.

The proposed sale of Orangina-Pampryl and Yoo-Hoo is a key step in the Group's refocus on its core business, spirits and wines, the industry in which it will become one of the major global players following the anticipated acquisition of Seagram's brands. "Pernod Ricard is very proud of the success achieved with its soft drinks brands and it is with a heavy heart that we envision a divestiture of these prestigious brands and a separation from our colleagues, whose great talent has contributed to the brands' success," commented Patrick Ricard. "I am certain that they will find within the Cadbury Schweppes group many new and exciting prospects and I wish them every success," added the Chairman of Pernod Ricard.

Orangina-Pampryl is the second largest soft drinks producer in France, and the Orangina brand is present in numerous export markets. Yoo-Hoo is the leading chocolate drink in the US.

Notes to Editors

Orangina-Pampryl

Domestic market leader for fruit based drinks No. 2 on the domestic soft drinks market Orangia-Pampryl is present in over 60 countries with the Orangina and Ricqles brands.

Turnover: Euros 420 million

Orangina-Pampryl brands

Orangina Standard                   Ricqles
Orangina Rouge                      Pam Pam
Orangina Light                      Pampryl
Orangina Plus                       Champomy
Les Givres                          Banga
Brut de Pomme                       Agruma

Yoo-Hoo

Yoo-Hoo is the leading brand in the American market for the chocolate drink category, with 75% market share

Turnover: US$ 140 million