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COMPANY PROFILE

COMPANY PROFILE

Dear Sirs, We are proud to introduce you the leader of Ukrainian alcohol beverages, one of leading international company – Image Holding The Holding consists of

Production facilities: 1. Khortytsa Distillery -

one of the largest alcoholic beverages producers in the world, located in the south-eastern part of Ukraine;

2. Feodosia Winery and Cognac House Crimean Wine House –

wine distillery and wine-growing, situated in Crimea, in the heart of ancient city of Feodosia.

Distribution company: Trading House “Megapolis”-

is a exclusive distributor of

Khortytsa

Distillery

and

Crimean Wine House

production

The company representative offices located in:

1. Ukraine: wide-spread distribution network with 41 branch offices.

2. Russia: Moscow, Postov-na-Donu, Kazan, Nizhny Novgorod, others – 64 regions;

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COMPANY HISTORY

COMPANY HISTORY

Construction of the new

vodka distillery Khortytsa

started in 2002 году and lasted only one year. It is the only enterprise in Ukraine built from scratch on a carefully selected spot as a part of an unparalleled project (9,2 hectares). In December 2003 the first batch of products came off the conveyor belt. Today,

Khortytsa

distillery is the most expansive and up-to-date distillery In Ukraine. All its manufacturing facilities and components were purchased under the motto:

«Best equipment for the best enterprise!».

That is why the

Khortytsa

distillery uses equipment from the world leaders in the manufacture of hardware for the food industry

(REHAU

engineering systems,

GRUNDFOS

pumps,

TOYOTA

loaders etc.)

Highly reliable Italian bottling lines ITAL PROJECT

ensures high accuracy of each operation from thorough dosing and corking to quality labeling and date marking.

The

alcohol cellar and bottling equipment

is made of

THYSSENKRUPP

stainless steel.

Highly-qualified personnel

is employed to operate five lines with producing capacity of

600,000 dal

monthly.

The Company’s products are the absolute leader in sales on home market.

The Company’s objective is to gain absolute leadership throughout the world.

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Khortytsa DISTILLERY OUTPUT, IN DALS

10000000 8000000 6000000 4000000 2000000 0

Khortytsa DISTILLERY OUTPUT, IN DALS

Khortitsa Distillery output, dals 9380000 4002000 1880000 2004 2005 Объем производства ЛВЗ "Хортиця" 2006

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BUSINESS AND CORPORATE ETHICS

BUSINESS AND CORPORATE ETHICS

Company philosophy

: our present and future is based on acknowledgement and vigorous development of the ABSOLUTE QUALITY concept.

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MISSION

MISSION

To be the undisputable leader in the field of absolute quality beverages production and distribution, securing long-term and profitable business growth due to the effective management and high professionalism of personal

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COMPANY PERSONNEL

COMPANY PERSONNEL

Over 4,500 employees work for the company at the present.

This is a concerted and team-oriented personnel. They are very dedicated to work and mostly concentrated on absolute quality of the end product.

The softness of taste, fineness of aroma and the unrepeatable uniqueness of the drink, its true quality, depend not only on the fine size of ingredients, temperatures of infusion and distillery, and time intervals of mixing but also on the state of the heart and spirit put into the beverage production .

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UKRAINE: LEADING BRANDS MARKET SHARES

UKRAINE: VODKA MARKET DYNAMICS *

80 000 2 100 000 70 000 60 000 58 947 53 719 50 000 45 548 39 716 40 000 1 036 768 30 000 942 620 44 983 1 074 579 1 284 664 1 401 626 67 808 1 738 923 1 800 000 1 500 000 52 613 1 321 963 1 200 000 900 000 600 000 20 000 10 000 0 300 000 93 841 82 427 93 678 110 740 121 886 138 161 106 412 0 F/M 05 A/M 05 Sales volume (1000 l) J/J 05 A/S 05 O/N 05 D/J 05 F/M 06 Sales volume (1000 UAH) Sales volume (1000 pcs.) * figures by MEMRB-IRI company

UKRAINE: LEADING BRANDS MARKET SHARES (in liters)*

Februar y/ March 2005 April/ May 2005 June/ July 2005 August/ Sept. 2005 October/ Nov. 2005 December 2005/ January 2006 February/ March 2006

Khortytsa/ Хортиця Nemiroff/ Немирофф Bilenka/Биленька Soyuz-Viktan/ Союз-Виктан 7% 14% 9% 7% 7% 14% 9% 8% 10% 10% 10% 8% 12% 10% 10% 8% 12% 11% 10% 9% 14% 12% 10% 8% 15% 13% 10% 9% Medoff/Медофф Khlebny Dar/ Хлебный дар Myagkov/Мягков Zlatogor/ Златогор 8% 4% 2% 5% 8% 5% 3% 6% 9% 6% 3% 5% 8% 7% 3% 5% 9% 7% 4% 5% 9% 7% 4% 4% 9% 7% 4% 4% Olimp/Олимп Vdala/Вдала 8% 3% 7% 3% 6% 3% 6% 4% 6% 4% 5% 4% 4% 4% * figures by MEMRB-IRI company

16% 14% 12% 10% 8% 6% 4% 2% 0%

UKRAINE: LEADING BRANDS MARKET SHARES *

Vodka leading brands market shares dynamics, in litres Хортица Немирофф Биленька Союз-Виктан Медофф Хлебный дар Мягков Златогор Олимп Вдала * figures by MEMRB-IRI company

UKRAINE: LEADING BRANDS MARKET SHARES (in UAH) *

February/ March 2005 April/ May 2005 June/ July 2005 August/ Sept. 2005 October/ Nov.

2005 December 2005/ January 2006 February/ March 2006

9% 9% 13% 15% 15% 17% 18% Khortytsa/ Хортиця Nemiroff/ Немирофф Bilenka/ Биленька Soyuz-Viktan/ Союз-Виктан Medoff/Медофф Khlebny Dar/ Хлебный дар Myagkov/Мягков Zlatogor/ Златогор Olimp/Олимп Vdala/Вдала 17% 9% 7% 6% 4% 9% 4% 2% 1% 16% 8% 9% 6% 5% 7% 5% 2% 2% 12% 9% 8% 6% 6% 6% 5% 3% 2% 11% 9% 8% 7% 7% 6% 4% 3% 2% 12% 9% 9% 7% 7% 6% 4% 3% 3% 14% 9% 8% 7% 7% 5% 4% 3% 3% 15% 9% 9% 7% 6% 4% 4% 4% 3% * figures by MEMRB-IRI company

20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0%

UKRAINE: LEADING BRANDS MARKET SHARES *

Ukrainian vodka brands market structure dynamics, in UAH Хортица Немирофф Союз-Виктан Медофф Биленька Хлебный дар Мягков Златогор Олимп Вдала * figures by MEMRB-IRI company

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EXPORT

EXPORT

Owing to absolute quality, the

Khortytsa

brand products are appreciated by consumers and are being sold

in 27 countries of the world.

Including Russia, Israel, Germany, Latvia, Kazakhstan, Poland, Armenia and other countries.

By the end of the year number of countries will reach 70.

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OUR PARTNERS

OUR PARTNERS

Russia

Pyatyorochka, Krestovsky, Alye Parusa, Avoska, Present Prod, Micridan, Mir VT, 7 Continent, Ashan, Prodmix, Eridan, Ireland, Germes Inter, Yuzhny Dvor, Hyam-Nyam, Stanem Druz’yamy, Billa, 12 months, Cotex-Torg, Ramstore, ABK, Grossmart, Ostrov, Tsenrt Servis, Dixica, Fortuna Garant.

Ukraine

Furshet, Veluka Kyshenya, Begemot, Silpo, Metro, Eco Market, Billa, Fozzy, Target, Class, Pyatyorochka, Rost, Akvamarin, Bolshaya Lozhka, Kelikh, ATB, Reinford, Kit, Econom +, Kramnytsya +, Amstore, Obzhora, Favorit, Krona, Soyuz-Leader, Grand, Pacco, Absolut, Oscar.

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DISTRIBUTION IN UKRAINE AND RUSSIA

EXCLUSIVE DISTRIBUTION CAMPAIGN

Megapolis Trading House

is the exclusive distributor for

Khortytsa

Distillery and

Crimean Wine House.

Megapolis Trading House

was founded in 1995 and is the largest distributor of alcoholic beverages in Ukraine. The Company arranges sales operating a network of

41 sales branches and 81 trading departments

, which covers all regional centers of Ukraine.

Megapolis Trading House

performs supplies to more than 35 thousand sales outlets.

The Company is notable for the European labor management system.

Our principles are customer-oriented policy, permanent staying in profit area, leadership on each level, self-training, in-processness

.

Therefore

Megapolis

Trading House is an undisputed leader!

Starting from 2004 the Russian representative office of the company operates in Moscow. Nowadays distribution net consists of 13 branches and more than 50 trading departments operating in 64 regions of Russian Federation.

DISTRIBUTION IN UKRAINE

Zaporozhye, Nikopol, Melitopol, Berdyansk, Lugansk, Donetsk, Gorlovka, Mariupol Simferopol, Sevastopol, Yalta, Feodosia, Dnepropetrovsk, Krivoy Rog, Kherson, Kirovograd, Nikolaev, Odessa, Ismail, Vinnitsa, Zhitomir, Cherkassy, Uman, Sumy, Poltava, Kremechug, Kharkov, Kiev, Pereyaslav-Khmelnitsky, Belaya Tserkov, Rovno, Chernigov, Lutsk, Khmelnitsky, Ternopol, Lvov, Ivano-Frankovsk, Chernovtsy, Nezhin, Uzhgorod, Mukachevo, Konotop.

DISTRIBUTION IN RUSSIA

Moscow, Saint-Petersburg, Kazan, Yekaterinburg, Nizhny Novgorod, Rostov-na-Donu, Novosibirsk, Chelyabinsk, Volgograd, Omsk, Tomsk, Vladivostok, Tyumen, Magadan, Arkhangelsk, Murmansk, etc.

– 64 regions altogether

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BREAKDOWN OF DISTRIBUTION FIGURES BY PERIODS, 2005

BREAKDOWN OF DISTRIBUTION FIGURES BY PERIODS, 2005

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 51% 187 57% 146 58% 224 351 56% 61% 355 428 66% 71% 332 600 500 400 300 200 100 69% 69% 71% 70% 74% F/M 05 A/M 05 Weighted distribution J/J 05 A/S 05 O/N 05 Average output from outlet (l) 78% 80% D/J 05 F/M 06 Numerical distribution 0

40000 35000 30000 25000 20000 15000 10000 5000 0

SALES PUTLETS DYNAMICS

21000 Sales Outlets Dynamics 30000 35000 2004 2005 Динамика ТТ 2006

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AWARDS

AWARDS

PRODEXPO-2004: ABSOLUTE QUALITY GOLD WINNERS

The International Exhibition of Foodstuff and Food Raw Materials ProdExpo-2004 (February 9 to13, Moscow) awarded the vodka

Khortytsa Silver Freshness

and the recipe of

Pepper and Honey Spicy

nastoyka with a title of

Best Product 2004

and gold medals.

Best Brand of Ukraine

All vodkas produced by

Khortytsa

distillery, which were exhibited at the alcoholic beverages tasting contest

Best Brand of Ukraine

held on the 16 th Exhibition were rewarded with gold medals with the right to bear a medal image on labels.

National Fair

BEST QUALITY VODKA IN UKRAINE HAS BEEN DEFINED

The competent International Taste Panel acting within the frameworks of AlcoSoft Annual Exhibition awarded

Khortytsa Khortytsa

distillery beverages with twelve gold medals. It is worth noting that gold medals rewarded to all the distillery beverages presented at the contest is a unique achievement of a Ukrainian producer.

AWARDS

Khortytsa distillery: a sparkling debut in the North capital of Russia

Khortytsa

distillery presented a special vodka

Khortytsa Platinum Spicy

and bitter nastoyka

Khortytsa Pepper and Honey

at the 11 th International Exhibition

Petersburg Wine and Vokdka Fair 2004 Khortytsa

held at the LenExpo exhibition center. The debut of the leading Ukrainian distillery was a success:

Khortytsa Platinum

was awarded with a gold medal and

Khortytsa Pepper and Honey Spicy -

with a silver medal.

New Khortytsa distillery winnings

10 product names presented by the Khortytsa distillery at the 11 th International Specialized Exhibition Fair

WINE VODKA-TOBACCO 2004

held in Sochi were awarded with 10 medals in all nominations. This is an ABSOLUTE ACHIEVEMENT at such large-scale exhibition!

Khortytsa gold parade

On February 15, 2005 the XII Tasting Contest held within the PRODEXPO International Exhibition announced its winners. With a high status of a largest East-European contest the competent panel highly rated the

Khortytsa

distillery products. In addition to diplomas of honour, which the leader of market is accustomed to, the products of the super-modern distillery have won 6 medals for exclusive recipes and absolute quality.

AWARDS

Best vokda in Ukraine has been defined

Striking results have been shown by

Khortytsa

distillery at the ALCO+SOFT’ 2005 Tenth Anniversary Exhibition! The company products were awarded with 24 medals for quality and the top contest prize

Grand Prix

awards was won by the same producer.

. It was first time in the exhibition history when such a number of

LenExpo 2005

At the 12 to the th International Wine and Beverages Exhibition

LenExpo 2005

, Saint-Petersburg, each and every product presented thereat was awarded with a medal in various nominations! Awards granted at the international specialized exhibition in Russia implicitly prove the absolute quality and excellent tasting parameters peculiar

Khortytsa

distillery products.

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HISTORY OF FOUNDATION Crimean Wine House

HISTORY OF FOUNDATION

The Company has quite recently launched Wine branch, however, due to its professionalism and purposefulness, it is rapidly and successfully expanding now.

Feodosia Winery is unique for it keeps hereditary secrets of wine growing since it was

founded in 1824 by Count Alexander Baude

of wine making so far.

and follows old traditions At the beginning of ХХ century a hereditary nobleman was forced to escape from Bolshevik repressions and for that reason Count Baude immigrated accompanied by his family to France. Only in 1991 upon results of bidding at the international auction, the Baude Mansion and old-established winery were restored to the descendants of initial owners. The winery was given a new name of

Crimean Wine House

. 12 years later,

in 2003 Crimean Wine House was acquired by Image Holding Company

. The Company entered into the contract by virtue of which certain grape varieties are directly delivered from Bordeaux Province France.

ИСТОРИЯ СОЗДАНИЯ

At the same time, the

Crimean nature

, where the Crimean Wine House land is spread, is as specially created for wine growing and wine making prosperity.

Contrasting relief is where vineyards are planted on downhills, in valleys and plains close to the seaside of the Black Sea.

Plenty of sunshine ensures bunches of crapes grow ripe till November gaining the best sweetness.

Variety of soils provides that wine from every certain area is notable for individual impressive nature.

Vineyards, crape storehouses and winery together are located on a

wide spread territory of Crimean Wine House

(about 4,5 thousand ha), that brought into the world a wide selection of dry, fortified and sweet wine, and as well quite rare natural semi-sweet wines.

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PRODUCTION

PRODUCTION

Crimean Wine House

uses experience of

high-skilled wine makers and ultramodern equipment

for wine production. Work continues here during a whole year, including daily attendance at the vineyards and application of skills and experience for growing a high-quality product.

At present the modern

Italian bottling lines made by ITAL PROJECT

, a world known company, are mounted in

Crimean Wine House

sites. Production process is completely automated and requires minimum manual interference.

Every line is provided with warranty, ensures a high protection and safety level

. The equipment conforms to all applicable technical, ecological and sanitary standards. For bottling

Crimean Wine House

mostly uses

0,75 l bottles of European standard manufactured in compliance to advanced international technologies

.

The winery production capacity is valued in six digits, in particular, at the same time

11 thous. tons of wine raw material can be stored and 10,3 thous. tons of crape can be processed at Crimean Wine

House

.

Every selection of wine

manufactured here is

special and unique

. Each is notable for

original history

,

individual flavor

and is

exclusive

without any doubts .

Wide lands of

Crimean Wine House

amaze by rich grape varieties, including different table varieties (45%). However it is not a limit. In the near future it is planned further expansion of the vineyards. A

gross crape yield of 14 thousand tons

shall be deemed an immediate objective of an extensive development It will result to the development of the wine branch and facilitate increasing of the company’s profit.

Крымский Винный Дом

STRATEGIC SALES PLAN

2007 2006 Ukraine: 11 100 000 bot.

Export: 1 670 000 bot.

Ukraine: 19 050 000 bot.

Export: 7 550 000 bot

.

HOLDING DEVELOPMENT STRATEGY

DEVELOPMENT STRATEGY 2006 July 2006 –

launch of alcoholic beverage bottling using leased production facilities in the Russian Federation;

October 2006 –

doubling of

Khortytsa

Distillery production output;

November 2006 –

increasing production output of

Crimean Wine House

Affiliated Company;

December 2006 –

export supplies to 70 countries all over the world

DEVELOPMENT STRATEGY FOR 2007 – 2008 2007

– distribution network is accomplished throughout the countries, which are the major customers, such as Russia, Kazakhstan and Poland. Formation of distribution network in the USA

2007

– launch of a new distillery in the Russian Federation

2007

– construction of glass-works plant

2007

– construction of cognac house in the Crimea

2008 –

launch of pure-alcohol plant

2008

– construction of printing plant

2008

– construction of juice plant

The company aims at absolute leadership in sales IN THE WHOLE WORLD

!