E-Malt.com News article: 3279

Brazil: Quilmes Industrial (Quinsa), S.A. ("Quinsa" or the "Company") announced on September 16 the preliminary results of its modified "Dutch Auction" offer to repurchase up to 8,400,000 of its Class B shares (including Class B shares held as American Depositary Shares ("ADSs")). The offer expired at 10:00 a.m., New York City time, which is 4:00 p.m. Luxembourg time, on Thursday, September 16, 2004.

Based on a preliminary count by the ADS tender agent and the share tender agent for the offer, 14,930,553 Class B shares (including 14,573,352 Class B shares held as ADSs) were properly tendered at or below $9.50 per share (or $19 per ADS) and were not withdrawn. 109,300 of the Class B shares tendered as ADSs were tendered through notices of guaranteed delivery. Quinsa has decided to exercise its right to purchase an additional 2% of its outstanding Class B shares without extending the offer. Accordingly, Quinsa preliminarily expects to purchase 9,584,689 Class B shares (including those held as ADSs) at a purchase price of $9.50 per share (or $19 per ADS). Based on the preliminary count, the preliminary proration factor for the tender offer is approximately 64.195%.

The determination of the final purchase price and the final proration factor is subject to confirmation by the ADS tender agent and the share tender agent of the proper delivery of all Class B shares and ADSs tendered and not withdrawn. Payment for the Class B shares and ADSs accepted for purchase, and
return of all other Class B shares and ADSs tendered, will occur promptly after completion of the final purchase price and proration computations.

Quinsa also noted that the offer to purchase relating to the tender offer was amended on September 8, 2004. While this amendment did not change the
offer price or any other material term of the offer, Quinsa has filed the amendment with the SEC and has caused the amendment to be distributed to its
Class B shareholders in Europe through Euroclear and Clearstream. Additionally, shareholders may obtain a copy of the amendment from the share tender agent, free of charge.

Quinsa is a Luxembourg-based holding company that controls 87.6 percent of Quilmes International (Bermuda) ("QIB"). The remaining stake is held by
Beverage Associates (BAC) Corp. ("BAC") and by Companhia de Bebidas das Americas - AmBev ("AmBev").

Quinsa, through QIB, controls beverage and malting businesses in five Latin American countries. Its beer brands are strong market leaders in
Argentina, Bolivia, Paraguay and Uruguay and have a presence in Chile. Further, pursuant to the Company's strategic alliance with AmBev, it has
entered into license and distribution agreements to produce and sell in Argentina, Bolivia, Chile, Paraguay and Uruguay the AmBev brands. Similarly, under the agreements AmBev may produce and distribute Quinsa's brands in Brazil. Quinsa's Class A and Class B shares are listed on the Luxembourg Stock
Exchange (Reuters codes: QUIN.LU and QUINp.LU). Quinsa's American Depository Shares, representing the Company's Class B shares, are listed on the New York Stock Exchange (NYSE: LQU).


18 September, 2004