Acquisition

Barr(A.G.) PLC 22 May 2006 For immediate release 22 May 2006 A.G.BARR p.l.c. A.G.BARR p.l.c. announces the acquisition of Strathmore Mineral Water from Constellation Brands, Inc A.G.BARR p.l.c. ('Barr'), the soft drinks group, today announces the acquisition of the Strathmore Mineral Water Company ('Strathmore') from Constellation Brands, Inc for a consideration of £15 million. The consideration will be paid in cash from existing resources at completion. Strathmore is a division of the US company Constellation Brands, Inc. The unaudited management accounts of Strathmore show its sales in 2005/6 were £14.6 million, and the business generated a net profit before taxation of £1.3 million. Gross assets of the division (including goodwill) were £15 million. Strathmore bottles, markets and distributes still and sparkling spring water as well as a range of flavoured spring waters throughout the United Kingdom. Strathmore is one of the leading brands in the UK water market and is a brand leader in food service and the on-trade. The acquisition of Strathmore will meet Barr's strategic objective of acquiring strong brands in the soft drinks sector which have considerable growth potential and operating synergies. The Strathmore brand is expected to benefit from Barr's expertise in the soft drinks market and its focused management approach. The business will be integrated into the Barr operating system which will over time realise synergies to facilitate further investment in the Strathmore brand. The existing business between Strathmore and Matthew Clark Wholesale (the drinks wholesale business of Constellation) will, as a consequence of the purchase, be further developed as the close links between these two companies will continue on an ongoing contractual basis. Barr Chief Executive, Roger White said, 'We are excited about the acquisition of Strathmore and the opportunity which it presents. The Strathmore brand will significantly enhance Barr's position in the fast growing water category and we consider there to be further development potential for Strathmore and its product range. Strathmore is a natural fit to our existing portfolio and business, further strengthening our position as a diversified soft drinks business. Strathmore's leadership in the on-trade represents an excellent platform from which to grow our presence in this key channel. We look forward to developing the Strathmore brand and to welcoming its employees, customers and partners to A.G.Barr.' For further information please contact: A.G.Barr p.l.c. Tel: +44 (0)141 554 1899 Roger White, Chief Executive Buchanan Communications Tel: +44 (0)20 7466 5000 Tim Thompson / Nicola Cronk NM Rothschild & Sons James Murray Tel: +44 (0)20 7280 5000 Notes to Editors: A.G.Barr p.l.c. A.G.BARR p.l.c. is a long established soft drinks manufacturer with its head office in Glasgow. As the country's leading independent branded carbonated soft drinks manufacturer, the company enjoys a wide portfolio of soft drinks, including Irn-Bru, Diet Irn-Bru, Irn-Bru 32, Findlays Water, Orangina, Tizer, D& B and the Simply Range. As the company's flagship brand, Irn-Bru continues to go from strength to strength in the UK; in Scotland the brand remains firmly as the number one grocery brand whilst in England and Wales it is steadily working to increase its share of the carbonate market. Following its re-launch last year, Diet Irn-Bru is performing exceptionally well, having connected with an increasing number of calorie-conscious consumers through a fully-integrated marketing campaign. The most important strategic product development to date from Barr is Irn-Bru 32. Created as a 'refreshing and delicious energy drink' in response to market demand, Irn-Bru 32 is the first major extension to the Irn-Bru brand since the launch of Diet Irn-Bru 26 years ago and represents a £3 million investment. Utilising the main brand's secret ingredients but with the added intensity of caffeine and taurine, the brand encourages 'Pure Mental Stimulation' and is the first member of the Irn-Bru range to be introduced from launch at a UK-wide level. Strathmore Mineral Water Strathmore, is the UK's leading 'produced bottled water brand' and manufactures still, sparkling and flavoured spring water. All products are sold under the Strathmore brand and the company recently launched a Spring fruits range (which combines spring water and real fruit juice) and Strathmore Select (a premium range of flavoured spring waters). The company is a strong player in all sectors of the bottled water market and in all channels of distribution This information is provided by RNS The company news service from the London Stock Exchange

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