Joint Venture Announced

Blavod Extreme Spirits PLC
22 August 2005




                         Blavod Extreme Spirits to form
                 Joint Venture with Suntory International Corp.

Introduction

Blavod Extreme Spirits Plc ('Blavod') is pleased to announce that it has agreed
to form a joint venture company with Suntory International Corp., a U.S.
subsidiary of Suntory Limited ('Suntory'), which is Asia's leading producer of
beverage alcohol, and one of the largest beverage alcohol companies in the
world. Blavod had previously announced on 16 May 2005 that it had signed a
Letter of Intent to form a joint venture Company.

The new joint venture company, to be called Diamante Spirits LLC ('Diamante'),
will be a 50:50 partnership to exploit the respective strengths of the two
companies.

About Diamante Spirits LLC

   •The joint venture will focus on developing premium spirits brands, with
    ownership of all new brands developed by Diamante to be held within the
    joint venture company. Suntory will provide the funding for the joint
    venture to cover development, operating and marketing costs, while Blavod
    will be responsible for creation of new products, as well as marketing and
    distribution. By combining Blavod's expertise in developing innovative
    premium spirits with Suntory's financial resources and market position, the
    joint venture is expected to produce some highly competitive new products.


   • Diamante will concentrate on the areas of the global spirits market
    where Blavod has its main expertise - namely high growth market segments,
    such as premium vodka, tequila, rum and gin. Diamante expects to introduce
    its first new product in late 2005.

   • Diamante will benefit from the distribution network of both Blavod in
    the US and UK and Suntory in Asia and Oceania, which will significantly
    increase the number of potential consumers for the products.


   •Blavod will be responsible for the day to day management of the new
    company. Blavod's existing products (Blavod Black Vodka and the Players
    Extreme range) are not involved in the agreement.


   •The joint venture will utilize the existing Blavod distribution network.
    Under a structure agreed with Suntory, Blavod will receive additional
    revenues through acquiring products from Diamante and then selling them on
    to distributors. The Blavod sales team will add the new products from
    Diamante to their existing portfolios.

Blavod believes that its association with Suntory will raise its profile within
the drinks industry and that this will have a positive long-term impact on its
relationships with distributors, retailers and target customers.

Blavod current trading

As stated at the company's AGM on 20 July 2005, trading in the first quarter of
the current fiscal year, versus the same quarter last year, is showing
significant case sale increases in both the UK and US, up by 38% and 206%
respectively.

These increases have been primarily driven by the growing popularity of Blavod
Black Vodka and our Players Extreme range, both of which continue to benefit
from vodka's position as the fastest growing spirit on a global scale.

Jeff Hopmayer, CEO of Blavod Extreme Spirits, said:

'We are very excited by our relationship with Suntory and the opportunities this
partnership will create. Suntory's global reach, production expertise and years
of market experience, combined with Blavod's success in creating new, exciting
products, will give the joint venture the tools to create an instant presence in
the spirits industry.'

'The potential of our joint distribution with Suntory will provide Diamante's
brands with an opportunity to penetrate marketplaces across the world and
develop a large consumer following.'

Yasuhiro Fukuyama, President of Suntory International Corp., said:

'We are very pleased to be entering into this joint venture with Blavod, a
company with proven expertise in developing premium spirits. This is a
significant new venture for us, and we look forward to rapidly bringing some new
and exciting products to market.'

                                    - END -

Media Enquiries:

Blavod Extreme Spirits
Jeff Hopmayer, Chief Executive Officer                   001 615 771 9111

Evolution Securities
Tom Price                                                020 7071 4300

Cardew Group
Tim Robertson/Catherine Maitland                         020 7930 0777

Background on Blavod Extreme Spirits

Blavod Extreme Spirits, plc (LSE:BES), established in 2003, is a London-based
and publicly traded company with U.S. subsidiary offices, Blavod Extreme Spirits
USA, Inc., headquartered in Franklin, Tenn.

The BES portfolio includes the award-winning Players Extreme line featuring Five
Times Distilled Vodka along with intensely infused Green Apple, Cherry, Lemon,
Mandtango (mandarin/tangerine) and Caramel vodkas. Players Extreme also offers
flavour-infused rums - Banana, Coconut and Mango.

Blavod launched Blavod Black Vodka in 1998 and has established a strong UK and
US sales network. BES also represents a wine portfolio including Italian
estates, Baroncini and Bruno Rocca, among others. Bruno Rocca's 1999 Rabaja
(Barbaresco) was named one of Wine Enthusiast's Top 100 Wines of 2004.

Background on Suntory

Suntory Group continues to expand its businesses in various fields, ranging from
the renowned alcoholic beverage and food businesses to new fields such as health
food and flowers. Suntory's worldwide operation maintains a preeminent place in
the competitive global market of Asia, Oceania, Europe and the Americas.
www.suntory.com




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