Buenos Aires Embotelladora S.A. (BSE:BAES) yesterday announced its results for the fourth quarter ended September 30, 2000, in accordance with generally accepted accounting principles in Argentina ("Arg. GAAP").

Net ordinary results before extraordinary items for the quarter ended September 30, 2000, improved to a loss of US$ 9.0 million, from a loss of US$ 14.9 million, for the same quarter last year. Net loss after extraordinary items was US$ 9.4 million compared to a loss of US$ 44.6 million for the prior year period. The net losses before and after extraordinary items for the quarter ended September 30, 1999 include a US$ 0.2 million profit from beer sales stemming from a distribution agreement that has since been terminated.

FINANCIAL REVIEW FOURTH QUARTER FY2000

During the fourth quarter ended September 30, 2000, total volume sales of soft drinks and water were 22.3 million 8 oz. unit cases, compared to 24.3 million 8 oz. unit cases -excluding beer volume- sold in the same quarter last year. For the three months ended September 30, 1999 BAESA had sold the equivalent of an additional 0.8 million 8 oz. unit cases of beer pursuant to a distribution agreement, which was terminated in October 1999.

Revenues for the fourth quarter 2000 were US$ 58.3 million, compared to US$ 67.6 million the previous year. The decline in revenues was principally due to the termination of the beer distribution agreement and to lower average pricing resulting from an unfavorable economic environment.

Operating profit improved to US$ 4.8 million from US$ 4.9 million in 1999 on a fully comparable basis (i.e. excluding income from affiliates and profits from beer sales). This performance was achieved despite declines in volumes and average prices, and points to the success of the company's cost reduction efforts.

Net loss before extraordinary items improved to US$ 9.0 million from US$ 14.9 million for the same quarters, respectively.

TWELVE MONTHS ENDED SEPTEMBER 30, 2000

Revenues for the year ended September 30, 2000 were US$ 275.9 million, compared to US$ 304.2 million for the prior year, excluding beer sales. Volume sales were 104.0 million 8 oz. unit cases, compared to 107.6 million 8 oz. unit cases for 1999.

Gross profit was US$ 86.2 million for the year, compared to US$ 103.8 million in 1999. This was the result of declines in volume sales and average pricing. Average costs per 8oz. unit case were US$ 1.82 for the year ended September 30, 2000, compared to US$ 1.89 for same period last year. This 3.7 percent improvement was principally due to cost reductions for certain raw materials. Operating loss was US$ 16.6 million as compared to a loss of US$ 6.8 million for last year on a fully comparable basis, as a result of the decline in gross profit.

Net ordinary loss after tax for the fiscal year ended September 30, 2000 was US$ 43.0 million, compared to a net ordinary loss of US$ 60.2 million for the same period in 1999, net of income from beer sales.

During fiscal year 2000 BAESA recorded extraordinary losses for US$ 21.9 million, principally related to restructuring expenses.

Interest expense declined US$ 26.8 million to US$ 17.2 million as a result of the Company's repurchase of corporate debt in February 2000.

Net loss for the year was US$ 65.9 million compared to a profit of US$ 25.0 million for the previous year. Net profit for 1999 included a US$ 118.8 million profit due to the debt forgiveness resulting from the Company's debt restructuring of February 1999, and various extraordinary charges for approximately US$ 40 million.

RECENT DEVELOPMENTS

On August 24th, 2000, Quilmes Industrial S.A. ("Quinsa") acquired 3.478.946 ordinary B shares, at US$ 5 per share. As a result, Quinsa increased its direct and indirect ownership to 98.6% of BAESA's capital stock.

              BUENOS AIRES EMBOTELLADORA SOCIEDAD ANONIMA
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. Dollars)
ARG. GAAP


Three Months Ended Twelve Months Ended
------------------- ---------------------
9/30/00 9/30/99 9/30/00 9/30/99
(audited) (audited) (audited) (audited)

Net Sales 58,297 67,575 275,913 319,918
Cost of Sales (43,340) (47,373) (189,726) (216,124)
--------- -------- --------- ---------

Gross profit 14,957 20,202 86,187 103,794

Administrative expenses (4,217) (8,038) (22,208) (27,983)
Selling expenses (15,540) (16,931) (80,561) (80,926)
Income from affiliates - 1,319 - 7,455
Amortization of Goodwill (339) (665) (1,355) (2,827)
--------- -------- --------- ---------
(5,139) (4,113) (17,937) (487)
========= ======== ========= =========

Other income (expenses), net 1,745 (2,889) (5,171) (10,265)

Financial and holding
results (4,996) (6,636) (17,193) (44,040)
--------- -------- --------- ---------

Loss before income tax,
minority interest and
extraordinary items (8,390) (13,638) (40,301) (54,792)
========= ======== ========= =========

Income tax (621) (1,300) (2,713) (3,770)
--------- -------- --------- ---------

Net ordinary Loss (9,011) (14,938) (43,014) (58,561)

Extraordinary results (430) (29,622) (22,847) 83,546
--------- -------- --------- ---------



Profit / (Loss) before
minority interest (9,441) (44,560) (65,861) 24,985

Minority Interest - - - -

Net Profit / (loss)
for the period (9,441) (44,560) (65,861) 24,985
========= ======== ========= =========



BUENOS AIRES EMBOTELLADORA SOCIEDAD ANONIMA
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. Dollars)
ARG. GAAP

September 30, September30,
2000 1999
(Audited) (Audited)
------------- ------------

ASSETS
Current Assets:
Cash 1,903 2,098
Short term investments 1,911 -
Accounts receivable - Trade 24,639 32,541
Accounts receivable - Other 8,869 8,776
Inventories 8,251 10,063
Other Assets - 67,800
-------- --------

Total current assets 45,573 121,278

Non-Current Assets:
Accounts receivable - Other 1,163 2,521
Fixed Assets 147,839 163,006
Intangible Assets 46,412 48,948
Other Assets 234 243
-------- --------

Total non-current assets 195,648 214,718

Total Assets 241,221 335,996
======== ========

LIABILITIES
Current Liabilities:
Accounts payable 37,426 75,649
Loans payable 138,116 138,747
Payroll and social security taxes payable 8,125 8,054
Taxes payable 5,515 7,632
Other Liabilities 23,189 10,400
-------- --------

Total current liabilities 212,371 240,482

Non-Current Liabilities:
Accounts payable 110 1,254
Taxes payable - 18
Other liabilities 5,824 5,465
-------- --------

Total non-current liabilities 5,934 6,737

Minority Shareholders' Equity - -
-------- --------

Total liabilities 218,305 247,219

SHAREHOLDERS' EQUITY 22,916 88,777

Total 241,221 335,996
======== ========



BUENOS AIRES EMBOTELLADORA SOCIEDAD ANONIMA
CONSOLIDATED STATEMENTS OF STOCKHOLDERS'S EQUITY
For the twelve months period, ended September 30, 2000
(In thousands of U.S. Dollars)
ARG. GAAP


Common Capital Retained Total
Stock Contribution Earnings 2000
--------- -------- --------- ---------

Beginning balance 29,619 489,022 (429,864) 88,777

Absorption of losses,
approved by the February
16, 2000 Extraordinary
Shareholders' Meeting
(429,864) 429,864 -

Net loss (65,861) (65,861)
--------- -------- --------- ---------

Ending balance 29,619 59,158 (65,861) 22,916
========= ======== ========= =========