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Radegast Invested Millions of Crowns (CZK) to New Projects Aimed at Conserving Water (Translation)

11 January 2012

Projects will decrease water consumption by hundreds of thousands of hectolitres

Nošovice, January 10, 2012 - During the last couple of years, Radegast brewery made important steps in conserving water. Thanks to investments into technologically advanced equipment, it will conserve about 1,000,000 hl of water a year now. That is about one year of water supply for about 3.500 citizens of Moravia-Silesia region. The installation of a new generation compressor for compressed air production and by using generated by product heat is among the key projects. With its targeted projects in the field of water conservation, Radegast brewery saved more than 5.5 million CZK in water consumption used per 1 hl of beer produced, and moved up among the five best breweries within the SABMiller Group, which manages more than 100 breweries in 75 countries worldwide.

A mindful use of water is a Radegast brewery long-time goal. "Water is a precious material and so the maximum conservation of it is a part of our responsible approach. The result of our projects from past few years is that measured consumption of water per 1 hl of beer did not exceed 3 hl of water. That places us to those among the top breweries in the world," said Ivo Kaňák, Radegast Brewery Manager.

The main investment in the amount of 3 million Czech crowns was installation of a new compressor for compressed air production with the heat recovery in 2011. The compressor decreases the water consumption by 250,000 hl because it allows effective cooling water heating at 80°C and thus provides possibility of another use of the hot water, while the old system was not able to do so. Heating of cooling water within the compressor is possible due to a built-in system that uses the cooling water circulation through individual components of the compressor. "Water heated up within the compressor is further used in the hot-water heating system of the brewery. The compressor produces the highest level air and is utmost effective. Every year we conserve a significant amount of water and on top of it we also get 2,300 GJ of heat. The realisation of this project is a result of Sustainable Resources Department team work and our ability to effectively implement the newest technologies," said Ivo Kaňák, brewery's Manager while explaining functionality of the compressor.

Next to the compressor, the brewery has invested into other improvements like new washing technology in barrel-bottling room, process changes in production room and in CO2 capturing, use of recycled water from bottling plants for rinsing, and water treatment plant. All these projects together are conserving more than 750.000 hl water a year.

Notes for editors:

- Beer brewery Radegast, one of the most modern beer breweries in Czech Republic, has produced beer since 1970.
- Radegast Brewery has been a member of the biggest Czech beer brewing group Plzeňský Prazdroj, Inc. since 1999.
- For its social and civic responsibility in 2011, Plzeňský Prazdroj received Regional Governor's Award. The award is announced by the Governor of Moravia-Silesia region together with the Chairman of Quality Council of Czech Republic.
- Plzeňský Prazdroj became the Most Responsible Company of 2011. The award for responsible business conduct is announced for the eight time by Business for Society platform.
- Ten priorities of sustainable development of Plzeňský Prazdroj: 1. Responsible alcohol consumption awareness campaign, 2. Conserving water, 3. Decreasing energy consumption, 4. Use of recycled and returnable packaging material, 5. Direction towards the zero waste production, 6. Cooperation with partners sharing same business ethic values, 7. Respect for human rights, 8. Support of the fight against HIV/AIDS, 9. Support of regional development, and 10. Transparent communication and clear business result accessibility.
- With its total sale of nearly 10 million hectolitres during the calendar year of 2011 (including licenced productions abroad) and with its export to more than 50 countries worldwide, Plzeňský Prazdroj Inc. is the preeminent beer producer in the region and the biggest exporter of the Czech beer.
- Plzeňský Prazdroj Inc. is a member of SABMiller plc. group. Pilsner Urquell is the international flagship brand of the SABMiller brand portfolio.
- SABMiller plc. is one of the world's biggest beer brewing companies with beer brewing activities or distribution in more than 60 countries across six continents. SABMiller portfolio includes important international Brands such as Grolsch, Miller Genuine Draft, Peroni Nastro Azzurro, and Pilsner Urquell, as well as almost 200 successful regional and national brands.

Strategy of sustainable business conduct within Plzeňský Prazdroj

Additional information for the meeting on January 10, 2012

Investments into the area of sustainable development
During the last fiscal year*, Plzeňský Prazdroj has invested 46.1 million CZK into the area of sustainable development in Moravia-Silesia region. More than 40 million CZK of the sum went to the support of socially beneficial projects**. The remaining 6 million CZK are the investments connected with environmental protection, energy use reduction, emissions elimination, and water conservation.

Among the main projects of the last time period are investment into the new bypass route in Nošovice, and investments aimed at water conservation in Radegast brewery. Significant amount of resources was also dedicated to communities development, and mutually beneficial projects within the framework of the Prazdroj to People program in Moravia-Silesia region.

Clearly defined goals, clear strategy
Investments into the area of sustainable development are governed according to clearly defined strategy of Plzeňský Prazdroj and SABMiller companies. Strategy contains 10 areas including: environmental protection, responsible consumption, or regional support. In the area of supporting responsible consumption, for example, Prazdroj will continue placing the responsibility notice Alcohol does not belong behind the wheel on all labels and within all marketing communication. At the end of the year, Prazdroj also launched a new version of application for responsible drivers Promile INFO, which is available for download to smartphones and iPhone for free. Prazdroj will continue with its effort in water conservation. Its goal is to decrease water consumption by another quarter by the year of 2015. Energy consumption will be decreased too, as well as carbon "footprint", and that is thanks to the development of projects aimed at capturing of yeast CO2.

Sustainable development report - transparent result reporting
Results of sustainable business practices are clearly recorded in Sustainable Development Report made public by Prazdroj in Spring of every year. This year's edition will be the seventh in a row. For five years, the document was published under the title Social Responsibility Report.

Comment of Drahomíra Mandíková, Director of Corporate Relations and Communications of Plzeňský Prazdroj, to the last issue of the Report: "With the development of the strategy and our goals in the area of sustainable development, we have changed also the formal title of the document itself. At the time of the first issue of the document, we were one of the first business entities in Czech Republic that started to record and report results in this area. Six years of systematic work in this field are bringing tangible and countable profits reflected on 49 pages of the Report."

The Sustainable Development Report is accessible on Plzeňský Prazdroj at www.prazdroj.cz.

The document is verified by the independent platform Business for Society and it does contain their evaluation of the document. Since a few years ago, the Report is published in electronic form only.

Note.
*Ending on 3. 31. 2011
**Measured according to Standard methodology - responsible company (LGB)

Contact:
Jiří Mareček
Press Secretary
Phone: (+420) 724 617 219


This SABMiller subsidiary news release has been translated from its local market language to English language for publication on www.sabmiller.com. We have attempted to provide an accurate translation of the original material but due to the difficulties of translation slight differences may exist.

Note, the news release was first published in its local market on [10/01/2012].

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