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258 DESTYLERNIA „POLMOS" W KRAKOWIE S.A.

Introduction

Destylemia "Polmos" w Krakowie S.A. is leading producer of vodka and spirit professionally combining the century - old recipcs and manufacturing secrets. The Company has been in existence for 70 years, modelling itself on the centuries-long tradition of distilling in the Cracow region. We produce many brands, which are well known and appreciated in Poland, and some are also marketed abroad.

Taking advantage of favourable circumstances in the first half of the 1990's, we undertook a significant investment program, bccoming one of the most modem distill-eries in Poland. Among other improvements, we constructed our own rectification division; this enhanced the company's image among consumers as a producer of the highest ąuality beverages.

We also invested in the futurę by creating a new brand, Cracoyia Yodka. This re-ąuires a little explanation: there are many different alcoholic brands on the market in Poland, and Cracovia Vodka is undoubtedly one of these select few. This has been confirmed by the national and intcmational awards and distinctions it has won already, but our greatest source of pride is the increasing consumer acceptance of Cracovia Vodka from month to month. We also produce baker's yeast, and for many years we had been co-operating with the Pepsi Cola Company.

In November 1998 our firm embarked on the road to privatisation by passing the first stage commercialisation. This mcans that the Cracow Distillery became a company owned by the Polish State Treasury as the sole shareholder. On lOth June 2000 The Ministry of State Treasury invited all interested investors for negotiations in pur-chasing the shares in not smallcr amount than 51% of Capital stock of Destylemia. As a result the Company entcred the first step of privatisation.

Finding a strategie investor is now a major imperative.

If you represent a firm in the alcoholic beverage sector or have Capital available to takc advantage of this opportunity, consider the possibility of co-operating with the Cracow Distillery, a company with a rich tradition.

We welcome all inąuiries and proposals.

History

The history of the Cracow Distillery begins shortly after World War 1. After a century and a half of existence as a country divided up between its morę powerful neighbours, the Polish authorities of the time, cognisant of the distilling industry's importance to the national economy, created the Polish Spirits Monopoly in 1925. It task was to form a cohercnt industry out of the scattcred and disparate distillery busi-nesses in the three formerly occupied sectors.

In 1926 the management of the State Spirits Monopoly, acting under an agree-ment with the Baczewski and Krakus distilleries, decided to locate a distillery in Dąbie