COCA-COLA HBC S.A. First quarter results for the three months to 30 March 2001

MANAGING DIRECTOR'S REVIEW

I am pleased to report that the first quarter results of 2001 show strong EBITDA and volume growth compared with 2000.

EBITDA was ?68.8 million, ahead of 2000 by 13%. Underlying growth is stronger than this, as market infrastructure and development support of ?10.8 million was received from The Coca-Cola Company in the first quarter of 2000 and is included in the 2000 figures. Excluding this amount from the 2000 results would show a 37% growth in EBITDA. The last of the market infrastructure and development support payments were received in the first half of 2000.

The most notable growth this quarter was in the emerging market segment which was significantly better than 2000, with EBITDA of ?18.9 million, almost three times that of the first quarter 2000. The most significant contributor to this growth was Nigeria, doubling EBITDA compared with 2000. Romania, Russia and Ukraine also all had strong profit growth in addition to that seen for Nigeria.

Volume

Group volume was 228 million unit cases, 10% above Q1 of 2000. This year-on-year growth continues the momentum seen in 2000, but is stronger in the first quarter than we would expect for the full year. Growth partly reflects the weak first quarter in 2000, which was affected by inventory hangovers from the millennium and volume slowdown in Nigeria due to pricing actions. European volume growth (excluding Nigeria) was 9%.

Looking at volume performance by the three segments of our business, established markets volumes increased by 6% on 2000 to 110 million unit cases. In our largest established markets, Italy and Greece, volume growth reached 10%, although the comparison is with a weak first quarter in 2000. Sales of water continue to increase strongly in Greece. Total Ireland volume was below 2000, reflecting the loss of the 7-UP franchise in the Republic of Ireland, partially offset by the successful launch of Sprite.

Developing markets volume for the first quarter was 50 million cases, 9% higher than 2000. Poland, our largest market by volume in this category, showed double digit growth over 2000. In addition to CSD growth, we are seeing accelerating sales of water and juice. Emerging markets volume was 68 million cases, 17% ahead of 2000. Volume in Nigeria was 20% higher than 2000. In Nigeria, volumes had slowed in the first quarter of 2000 following substantial price increases.

COCA-COLA HBC S.A. First quarter results for the three months to 30 March 2001

MANAGING DIRECTOR'S REVIEW (cont'd)

In the other emerging markets, significant volume growth was also seen in Russia, Ukraine and Yugoslavia. This growth was built on more stable economic conditions than in early 2000 combined with targeted promotional activity.

Earnings In our established markets, EBITDA was ?49.8 million, marginally below Q1 2000. As has been previously referred to, infrastructure and development support had been received from The Coca-Cola Company in the first quarter of 2000, and ?5.5 million of this was allocated to established markets. Adjusting for this would show a 10% EBITDA growth over 2000. In addition, the transition out of the 7-Up franchise in Ireland had a negative impact on established markets growth.

In Italy and Greece, EBITDA growth was in line with volume growth as a result of planned incremental marketing and promotional activity in the quarter. In other established markets, EBITDA growth was strongly above volume growth rates through positive pricing benefits and cost efficiencies.

Developing markets EBITDA fell from ?3.2 million in 2000 to break even in 2001. Similar to established markets, developing markets had received an allocation of infrastructure and development support in 2000, and excluding this, 2000 showed a breakeven situation also.

Emerging markets EBITDA was ?18.9 million, almost three times that of Q1 2000. This exceptionally strong growth was generated predominantly by Nigeria, where EBITDA doubled from first quarter 2000. This improvement has been achieved through volume recovery combined with the benefit of higher prices and increased production efficiency.

In other emerging markets, EBITDA growth was strong, reflecting volume upturns from 2000 and the benefits of extended product ranges in the lower priced categories.

Capital expenditure

Capital expenditure was ?55 million in the first quarter of 2001. This expenditure is in line with plan and full year expectations remain at approximately ?250 million. We also continue to re-deploy some assets around the group to maximise efficient use.

First quarter results for the three months to 30 March 2001

MANAGING DIRECTOR'S REVIEW (cont'd)

Summary

In conclusion, the quarter has been a very strong one. In addition to achieving higher levels of volume growth, we have been able to implement price increases as planned. The strong results from our business reflect management strategies and it is our expectation that the positive trend seen in 2000 will continue in 2001.

We remain confident that we will meet our overall volume and financial objectives for the year. The second quarter in 2001, however, will be cycling a very strong second quarter in 2000, when many of our countries experienced the best weather since records began. Overall, I believe the first half results will be in line with current expectations.