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SABMiller plc and Molson Coors announce launch of MillerCoors

30 June 2008

Dynamic, brand-led brewer has increased scale, strong resources and enhanced distribution platform

MillerCoors Board of Directors Named

Pro Forma Figures Updated

SABMiller plc (SAB.L) and Molson Coors Brewing Company (NYSE: TAP; TSX: TPX) today announced the closing of the transaction to combine their U.S. and Puerto Rico operations to create MillerCoors.

MillerCoors, which will begin operating as a combined entity on July 1, 2008, will be a dynamic, brand-led U.S. brewer with the scale, resources and distribution platform to succeed in the highly competitive marketplace.

“As a unified company with a world-class board and leadership team in place, MillerCoors will be able to create tremendous opportunities for innovations in products and services that will allow us to drive profitable growth,” said Pete Coors, Chairman of MillerCoors.  “Personally, I am thrilled to be part of such an exciting and innovative organization and look forward to serving as the Chairman of this new business.”

Graham Mackay, Chief Executive of SABMiller, said, “Today is an historic day in the American beer business, not only for the shareholders of both SABMiller and Molson Coors, but for MillerCoors consumers, employees, distributors and business partners.  Now that the transaction has closed and MillerCoors is a reality, the strong leadership team we have put in place is ready to execute and realize the tremendous potential of this great organization.”

Leo Kiely, Chief Executive of MillerCoors, said, “MillerCoors will be entrepreneurial, with the ability to operate with speed and agility in the marketplace, backed by the powerful combined resources of two exceptionally successful companies.  We will drive profitable growth and bring new energy to the U.S. beer industry. Our focus now is to deliver on the $500 million in identified annualized cost synergies by improving sourcing across our eight major breweries, building a streamlined organization and leveraging the scale of the new company.  Our talented people are experienced and passionate about this business and – importantly – are determined to win.”

SABMiller and Molson Coors have each named five representatives to the MillerCoors Board of Directors, as follows:

  • Pete Coors, Vice-Chairman of Molson Coors Brewing Company and Chairman of the MillerCoors Board
  • Graham Mackay, Chief Executive Officer of SABMiller plc and Vice-Chairman of the MillerCoors Board
  • Peter Swinburn, President and Chief Executive Officer of Molson Coors
  • Sam Walker, Global Chief Legal Officer and Corporate Secretary of Molson Coors
  • Stewart Glendinning, Global Chief Financial Officer of Molson Coors
  • Dave Perkins, President, Global Brand and Market Development of Molson Coors
  • Malcolm Wyman, Chief Financial Officer of SABMiller plc
  • Nick Fell, Group Marketing Director of SABMiller plc
  • Johann Nel, Group Human Resources Director of SABMiller plc
  • Sue Clark, Corporate Affairs Director of SABMiller plc

Updated Pro Forma Figures

Based on results for Miller and Coors reported under International Financial Reporting Standards (IFRS) for the year ended March 31, 2008, and U.S. GAAP for the four fiscal quarters ended March 30, 2008, respectively, MillerCoors’ annual pro forma combined beer sales were 70.1 million U.S. barrels (82.3 million hectoliters), which is a 1.6 percent increase versus the comparable pro forma period a year earlier.  Pro forma net revenues were approximately $7.0 billion for the most recent year, a 6 percent increase versus a year earlier.  Pro forma combined EBITDA totaled approximately $991 million, an 18 percent year-over-year increase.  Pro forma EBIT of $743 million increased 27 percent from a year earlier.

Overview of SABMiller

SABMiller plc is one of the world’s largest brewers with brewing interests or distribution agreements in over 60 countries across six continents. The group’s brands include premium international beers such as Miller Genuine Draft, Peroni Nastro Azzurro, Grolsch and Pilsner Urquell, as well as an exceptional range of market leading local brands.  Outside the USA, SABMiller plc is also one of the largest bottlers of Coca-Cola products in the world. In the year ended March 31, 2008, the group reported $3,560 million operating profit before exceptional items and revenue of $21,410 million.  SABMiller plc is listed on the London and Johannesburg stock exchanges.  For more information on SABMiller plc, visit the company's website: www.sabmiller.com.

Overview of Molson Coors

Molson Coors Brewing Company is one of the world’s largest brewers. It brews, markets and sells a portfolio of leading premium quality brands such as Coors Light, Molson Canadian, Molson Dry, Carling, Coors, and Keystone Light in North America, Europe and Asia.  For more information on Molson Coors Brewing Company, visit the company’s Web site, http://www.molsoncoors.com.

This announcement is for information only and does not constitute an offer or an invitation to acquire or dispose of any securities or investment advice or an inducement to enter into investment activity.  This announcement does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire the securities of SABMiller or Molson Coors (the "Companies") in any jurisdiction.

The distribution of this announcement may be restricted by law.  Persons into whose possession this announcement comes are required by the Companies to inform themselves about and to observe any such restrictions.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the U.S. federal securities laws, and language indicating trends, such as “anticipated” and “expected”.  It also includes financial information, of which, as of the date of this press release, the Companies’ independent auditors have not completed their review.  Although the Companies believe that the assumptions upon which their respective financial information and their respective forward-looking statements are based are reasonable, they can give no assurance that these assumptions will prove to be correct.  Important factors that could cause actual results to differ materially from the Companies’ projections and expectations are disclosed in Molson Coors’ filings with the Securities and Exchange Commission and in
SABMiller’s annual report and accounts for the year ended March 31, 2008, and in other documents which are available on SABMiller’s website at www.sabmiller.com.  These factors include, among others, changes in consumer preferences and product trends; price discounting by major competitors; failure to realize anticipated results from synergy initiatives; and increases in costs generally.  All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions.  Neither SABMiller nor Molson Coors undertakes to update forward-looking statements relating to their respective businesses, whether as a result of new information, future events or otherwise.  Neither SABMiller nor Molson Coors accepts any responsibility for any financial information contained in this press release relating to the business or operations or results or financial condition of the other or their respective groups.

Contacts
For further information, please contact:

SABMiller / Miller       
Tel:   +44 20 7659 0100/ 414 931-6313
Nigel Fairbrass 
Media Relations, SABMiller 
Mob: +44 7799 894265

Molson Coors / Coors  
Kabira Hatland 
Media Relations, Molson Coors      
Tel:    (303) 277-2555

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