Central European Distribution Corporation (NASDAQ:CEDC) signed a binding Letter of Intent (LOI) in July 2007, to acquire a significant majority interest in various production and distribution assets related to the Parliament vodka brand in Russia and abroad. Since July, CEDC has worked closely with Parliament management to effectively move forward with a view to signing and closing the transaction during the first quarter of 2008, subject to satisfaction of customary closing conditions, including approval by the Federal Antimonopoly Service of the Russian Federation.

The Parliament business continues to show strong performance during the last half of 2007 including strong export numbers, with 2008 volume expected by Parliament management to reach over 3.1 million 9 liter cases (approximately $155 million of net sales revenue), representing a 20% gain over 2007 in volume terms. Based on these expectations, the anticipated accretion to CEDC fully diluted earnings per share post-closing on an annualized basis would be $0.20 to $0.30.

William Carey, President and CEO, commented: “We are extremely pleased to see the continued development of the Parliament business and look forward to working closely with its management team, following closing in 2008. Parliament has continued to invest in strengthening its national sales force which is now over 400 employees, which we believe will provide a strong platform for development of new and imported brands.”

Sergey Kupriyanov, Vice-President and CEO of Parliament Group, commented: “Within the context of the strong Russian economy and the continued premiumisation of the Russia vodka market, the Parliament shareholders are pleased with the progress the company has made in 2007, as well as with the proposed partnership with CEDC. We are confident that - given the progress towards signing and closing of the transaction - CEDC is the right partner to further support the Parliament brand’s growth in Russia and abroad.”

CEDC is the largest vodka producer in Poland and produces the Absolwent, Zubrowka, Bols and Soplica brands, among others. CEDC currently exports Zubrowka to many markets around the world. CEDC also produces and distributes Royal Vodka, the number one selling vodka in Hungary.

CEDC also is the leading distributor and the leading importer of alcoholic beverages in Poland and Hungary. In Poland, CEDC operates 16 distribution centers and 76 satellite branches and imports many of the world’s leading brands, including brands such as Remy Martin, Jagermeister, Metaxa, Jim Beam, Sauza Tequila, Grant’s, E&J Gallo, Sutter Home, Torres, Penfolds and Concha y Toro wines, Corona, Foster’s, and Guinness Stout beers and Evian.