YBF MANAGEMENT DENIES CHARGES OF VIOLATNG OBLIGATIONS

Noyan Tapan News Agency
Sept 26 2005

YEREVAN, SEPTEMBER 26, NOYAN TAPAN. The management of the Yerevan
Brandy Factory (YBF) denied charges that the Pernod Ricard Company
– the owner of YBF had allowed to decrease the basic reserves of
brandy spirit, as well as considers the possibility of selling the
enterprise. The enterprise issued a press release stating that as
of January 1, 2005, the annual age of spirits in its reserves made
10 years as an evidence that YBF fulfils its obligations to maintain
the basic brandy spirit.

The report says that YBF is the main purchaser of grapes in Armenia
and intends to purchase in 2005 about 25 thousand tons of grapes from
Armenian farmers, that is, by 20% more than in 2004.

Dispelling rumors about a possible sale of the enterprise, YBF stated
that Pernod Ricard considers the trade mark “Ararat” necessary for
increasing its sales in countries like Russia.

Based on the above stated, the YBF management proposes that the
competent bodies organize immediately control over the amount of grapes
purchased and the reserves and quality of all the brandy spirit kept
at local producers.