SOURCE: Blavod Extreme Spirits PLC

January 11, 2007 02:01 ET

Blavod Extreme Spirits PLC announces Trading Statement

LONDON, UK -- (MARKET WIRE) -- January 11, 2007 --

                           Blavod Extreme Spirits plc
                          ("the Company" or "Blavod")

                                11 January 2006

                                Holiday Trading
Blavod Extreme Spirits plc (BES.L) today reports on trading during the Christmas period, 1 October to 31 December 2006.

United Kingdom shipments increased by over 62% in the three month period and international shipments increased over 33%, particularly in German and Russian duty free. US shipments for the Company also increased in the period, led by the Company's tequila brand El Diamante del Cielo which was up 62%.

Jeff Hopmayer, Blavod's CEO said, "We are very pleased with the continued year-on-year growth in shipments during the holiday selling season. We look forward to updating shareholders further at the time of our full year results."

As previously announced on 28 November 2006, the Company has received and signed a 'Letter of Intent' from an unnamed (NASDAQ) OTC:BB listed company that may or may not lead to an offer being made for the Company. The approach, which is subject to a number of pre-conditions, is an all share offer of shares in the (NASDAQ) OTC:BB listed company. At close of business on 24 November 2006, the indicative offer valued Blavod at approx £12.83 million or 17.97p per share. If a share offer is made for the company by that (NASDAQ) OTC:BB listed company it will have a value of a minimum of 17.97p per share. The announcement was made with the agreement of the potential offeror. A further announcement will be made when appropriate.

Enquiries:

Blavod                        Jeff Hopmayer            001 615 771 9111

Brewin Dolphin                Mark Brady               011 3241 0129
                              Keith Williams           011 3241 0186

Notes to Editors:

Blavod Extreme Spirits, plc (LSE:BES), is an international spirits company based in London with U.S. offices in Franklin, Tennessee. Formed by the 2003 merger of Blavod Black Vodka plc and Extreme Beverage Company, Blavod Extreme Spirits produces and sells its black-coloured vodka, aptly called Blavod, throughout the world. BES also produces and sells the award-winning, intensely flavoured line of Players Extreme vodkas and rums. In the United States, BES is the exclusive distributor of an elite wine portfolio of fine Italian wines. For more information on the company, please visit www.blavodextreme.com.

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