Bacardi Makes All Cash Offer for 42 below at a 35% Premium

Hamilton, Bermuda , 2006-11-03

Bacardi Limited, the largest privately held spirits company in the world, through its New Zealand subsidiary, issued its formal, full cash offer to purchase spirits company 42 BELOW Limited, best known for its 42 BELOW vodkas. Bacardi's offer -- which just received approval from the New Zealand Overseas Investment Office -- is at 77 cents per share, with a healthy 35 percent premium from the time Bacardi announced its intention to acquire the publicly traded New Zealand company on September 26. For shareholders who bought at the initial public offering of 42 BELOW three years ago, and have exercised all their 42 BELOW warrants, this offer represents a return on investment of 68 percent.

The offer of 77 cents per share is above the top of the valuation range of 59 cents to 74 cents set by independent expert Grant Samuel, which was appointed by 42 BELOW's independent directors' committee. The independent directors have unanimously recommended that shareholders accept the offer. The offer values the company at approximately US$91m (NZ$137m).

"42 BELOW has done a fantastic job of boldly establishing this brand as 'New Zealand in a bottle' and we are excited about its growth prospects," said Andreas Gembler, President and CEO of Bacardi Limited. "To make 42 BELOW a global brand requires substantial financial support, access to world wide distribution and marketing infrastructure which Bacardi is eager to offer."

Bacardi has the support of founding shareholders, major shareholders and employees of 42 BELOW. Several, including Geoff Ross, 42 BELOW's Chief Vodka Bloke, have entered into lock-in agreements to accept the Bacardi offer in respect of their cumulative holding of 52 percent of 42 BELOW shares.

"This is a great opportunity for a brand that has always been proudly New Zealand. Now with Bacardi's generous offer, our national vodka brand can have the opportunity to become a global Kiwi icon," said Geoff Ross.

"Bacardi is known for its success in growing acquired brands and substantially investing in them and we believe it's the best company to build our products in the global spirits market. This is a great development," said Grant Baker, Executive Chairman of 42 BELOW.

Bacardi has an acknowledged track record of growing great spirit brands that it acquires, while retaining the unique heritage of the brands' origins -- as in Dewar's whisky, distilled in Scotland; Bombay Sapphire gin, produced in the UK; Grey Goose vodka crafted in Cognac, France; and Cazadores blue agave tequila created in Jalisco, Mexico.

Key to 42 BELOW's global success is maintaining its unique New Zealand heritage and culture.

Through the success of its offer, Bacardi expects to acquire the 42 BELOW brands of 42 BELOW vodka, including four flavoured vodkas -- Manuka Honey, Kiwifruit, Feijoa and Passionfruit, and the newly developed products of SOUTH gin, STIL vodka, SEVEN TIKI rum, TAHITI DARK rum and 420 spring water.

Offer at a Glance:

-- Bacardi offer is for 77 cents per share, above the top of the Grant Samuel valuation (59 cents to 74 cents)

-- 35 percent premium to 42 BELOW's closing price on the day prior to the announcement of the Bacardi bid

-- 40 percent premium to 42 BELOW's three month volume weighted average price (prior to the announcement of the Bacardi bid)

-- 54 percent premium over the 2003 initial public offering share price

-- 68 percent return on investment since the 2003 initial public offering (taking into account the benefits of warrant exercise)

-- Significant premium for shareholders

About 42 BELOW

42 BELOW vodka was launched in 1998 in the premium vodka segment and has shown strong volume growth in the last few years. The brand -- known for its innovative, irreverent and entrepreneurial style -- has earned a strong reputation for authentic New Zealand purity, quality and exceptional taste, reflected in winning numerous prestigious international awards including gold medals (for the third year running) at the 44th World Selection of Spirits and Liqueurs 2006 Belgium, the San Francisco Spirits Awards and the International Wines & Spirits competition UK. 42 BELOW vodka is currently distributed in more than 25 countries.

About Bacardi Limited

Bacardi Limited is the largest privately held spirits company in the world and produces and markets a variety of internationally recognized spirits. Bacardi Limited's brand portfolio consists of more than 250 brands and labels, including BACARDI rum, the world's favorite rum; MARTINI & ROSSI vermouth, the world leader in vermouth, GREY GOOSE vodka, the world leader in ultra-premium vodka; DEWAR'S Scotch whisky, the number one selling blended Scotch whisky in the United States; BOMBAY SAPPHIRE gin, one of the most popular premium gins in the world; CAZADORES blue agave tequila, the top selling 100 percent blue agave tequila worldwide and other leading brands.

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Contact

CONTACT: For Bacardi Limited, Miami Patricia Neal 305-446-9050 Amy Federman 305-347-4343 , ,