The previous release, RNS number 0385K issued at 1007 today, stated that Lawrence Banks, non-executive director of the Company, has subscribed £50,050 for 18,200,000 Placing Shares. This statement was incorrect as the subscription of £50,050 represents 1,820,000 Placing Shares. The announcement should have read:

Blavod Extreme Spirits PLC (’Blavod’ or the ‘Company’)

Issue of Equity

17 December 2007

Placing of 13,057,900 new Ordinary Shares at 2.75p per share to raise approximately £0.36m.

Blavod, the AIM listed owner of the Blavod Black Vodka brand, and wine and spirits distributor, today announces it has raised approximately £0.36m by way of a placing of new shares.

Summary of the Placing:

• Placing of 13,057,900 Placing Shares at a price of 2.75p per share to raise approximately £0.36m.

• Proceeds of the Placing will be used to strengthen the Company’s balance sheet and fund the working capital requirements anticipated as a result of the sales growth of Blavod Black Vodka and the rest of the portfolio of wine and spirit brands.

The Placing is being made on a non pre-emptive basis as the time and costs associated with a pre-emptive offer resulting from the introduction of the EU Prospectus Rules (which came into force in July 2005) are considered by the Directors to be excessive. The making of a pre-emptive offer would require the production of a prospectus which would have to comply with the Prospectus Rules and be pre-vetted and approved by the FSA. The Company obtained shareholder consent to the issue of shares constituting up to 20 per cent of the Company’s existing issued share capital on a non pre-emptive basis at the recent General Meeting.

Details of the Placing

The Company is raising approximately £360,000 through the issue of the Placing Shares at the Placing Price. The Placing Price of 2.75p represents a premium of 5 per cent. to the closing middle market price of 2.625p on 14 December 2007, being the last practicable dealing day prior to the date of this announcement. The Placing Shares will represent approximately 15.13 per cent. of the Company’s issued share capital immediately following Admission.

Related party transaction

The Placing Shares have been placed at the Placing Price with various institutional investors, and to Directors and key employees in the Company. In particular Richard Ambler, Managing Director, has subscribed £16,500 for 600,000 Placing Shares, Colin Campbell, non executive Chairman has subscribed £30,000 for 1,090,900 Placing Shares, and Lawrence Banks, non executive director, has subscribed £50,050 for 1,820,000 Placing Shares.

The issue of Placing Shares to Richard Ambler, Colin Campbell and Lawrence Banks is classified as a transaction with a related party for the purposes of the AIM Rules. In accordance, therefore, with the AIM Rules, Willie Phillips (the independent director), having consulted with the Company’s nominated adviser, Brewin Dolphin, considers that the terms of the transaction (namely the subscriptions by Messrs Ambler, Campbell and Banks, pursuant to the Placing at the Placing Price) are fair and reasonable insofar as its Shareholders are concerned.

Admission and dealings in the Placing Shares are expected to commence on AIM on 20 December 2007.

For further information, please contact:

Blavod Extreme Spirits plc

Richard Ambler (Managing Director) 0207 352 2096

Brewin Dolphin (Nominated Adviser)

Neil Baldwin/Alison Barrow 0845 270 8600

 

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