Campari Group

Continuing strong sales performance: € 505.7 million, +10.6% compared with the first nine months of 2002 (+17.1% at constant exchange rates).
Sales growth accelerates during third quarter: +14.7% compared with the third quarter of 2002.

Growth in all levels of operating profitability:

EBIT: € 85.5 million, +7.8% compared with the first nine months of 2002 (+15.6% at constant exchange rates) Group's pre-tax profit: +53.8% (including real estate capital gains)
Net financial debt down € 71.6 million with respect to 30 June 2003, from € 232.9 million to € 161.3 million.

Milan, 10 November 2003 - The Board of Directors of Davide Campari-Milano S.p.A. has approved the Quarterly Report as of 30 September 2003, showing strong growth in sales and all levels of operating profitability. These results benefited from accelerated sales during the third quarter of 2003 and a slight attenuation of the negative impact of exchange rates relative to the first half of the year, although still severely penalising.
It should be stressed, in this regard, that if the operating results were considered before exchange rates impact, they would exhibit an even stronger performance, with double-digit growth as compared to the equivalent period last year.

CONSOLIDATED RESULTS FOR THE FIRST NINE MONTHS OF 2003
In the first nine months of 2003 Group sales were € 505.7 million, up 10.6%. Organic growth, at constant exchange rates, was 10.8%, while the negative impact of exchange rates, mainly because of the devaluation of the US Dollar and the Brazilian Real, amounted to 6.5%. External growth of 6.3% is entirely due to the new distribution agreement of tequila 1800 in the US market.
Trading profit was € 136.4 million, up 6.6%, amounting to 27,0% of sales.

EBITDA was € 118.7 million, up 6.2% (+12.4% at constant exchange rates), amounting to 23.5% of sales.
EBITA was € 106.4 million, up 6.3% (+12.5% at constant exchange rates), amounting to 21.0% of sales.
EBIT was € 85.5 million, up 7.8% (+15.6% at constant exchange rates), amounting to 16.9% of sales.

Profit before taxes and minority interests was € 114.1 million, up 47.8% (+54.6% at constant exchange rates), as it benefits from the capital gain resulting from the sale of the head office building in Milan, Via Filippo Turati, completed in July, which amounted to € 33.7million.
Group's profit before taxes, i.e. profit before taxes net of minority interests, was € 102.1 million, up 53.8% (+58.2% at constant exchange rates).
As of 30 September 2003 net financial debt was € 161.3 million (€ 232.9 million as of 30 June 2003).

SALES IN THE FIRST NINE MONTHS OF 2003
The spirits segment, with sales of € 323.5 million, amounting to 64.0% of total turnover, grew by 21.6% at constant exchange rates (+12.1% at actual exchange rates). Organic growth was 11.7% at constant exchange rates (+2.3% at actual exchange rates). The Campari brand's growth was 0.3% at constant exchange rates
(-4.3% at actual exchange rates). In geographic terms, Campari's sales continue to show their positive trend in Italy (+3.6%) and in Brazil, while in Germany they confirm the positive trend reversal recorded since the beginning of the year, with slight growth in the first nine months of the year. SKYY Vodka provided a significant contribution to growth in the spirits segment during the first nine months, recording a total increase, including the new flavoured vodkas, of 25.3% at constant exchange rates (+5,2% at actual exchange rates); within the SKYY range, also the new line of flavoured vodkas launched in March 2003 continued its upward sales trend, achieving, over the first nine months, a percentage of 17% of total SKYY sales. The spirits segment also benefited from the positive performance of CampariSoda (+4.9% at constant exchange rates), Ouzo 12 (+10.3% at constant exchange rates), Jägermeister (+2.0% at constant exchange rates) and from Campari Mixx sales, which exhibited the expected seasonality peak during the summer months. External growth, deriving from tequila 1800, was 9.9% (at constant exchange rates).
The wines segment, which accounts for 11.6% of total sales, grew 6.0% at constant exchange rates (+2.9% at actual exchange rates). This result was brought about by the positive performance of the Cinzano brands: in particular, Cinzano vermouth grew 7.2% at constant exchange rates, mainly due to increased distribution in Eastern European markets. Cinzano sparkling wines saw a rise of 7.7% at constant exchange rates, exhibiting strong and consistent growth on the Italian market, partly offset by a slowdown in sales in the German market during the third quarter. Sella & Mosca sales were down 1.2% at constant exchange rates, entirely due to limited product availability, especially for white wines, as a result of the extremely poor 2002 harvest.
Soft drinks sales, accounting for 23.3% of total sales, grew 13.8%, with a strong acceleration in the third quarter thanks to the particularly favourable climatic conditions. The Lemonsoda, Oransoda and Pelmosoda range and Lipton Ice Tea grew respectively by 17.8% and 27.4% in the first nine months. Crodino, whose sales are less closely correlated to climatic variations, was up 5.5%.

In terms of geographic split, sales in the first nine months of 2003 on the Italian market accounted for 49.4% of the Group's sales and rose 9.3% thanks to the positive performance of the three business segments, and in particular of all spirits and soft drinks brands. Sales in the European area, 19.4% of total sales, grew by 12.5%, due to the introduction of Campari Mixx in Germany and Austria, to the good sales results of the Cinzano vermouths and to the first signs of recovery of the German market. In the Americas area, which represents 28.9% of total sales, sales in Brazil confirmed last year's levels, at constant exchange rates (-28.5% at actual exchange rates, entirely attributable to the devaluation of the Brazilian Real): the government measures recently adopted to confront the high inflation rate, among which the increase in interest rates, led to a slowdown in third quarter orders, which should be at least partly recovered during the final months of the year. The US market grew by 29.5%, as a result of the contribution provided by the new distribution contract for tequila 1800 (+31.9%) and of solid organic growth (+16.9% at constant exchange rates), led by the positive performance of SKYY Vodka.