Pernod Ricard is proposing that it adds an early redemption option on its 2.5%, EUR489m OCEANE convertible bond due to be redeemed in January 2008.

To this effect, Pernod Ricard will convene a bondholders' meeting to approve a resolution which would introduce an early redemption option in respect of all bonds.

According to Emmanuel Babeau, CFO of Pernod Ricard: "This modification of the terms of the OCEANE would allow us to accelerate the conversion of the Bonds into shares permitting a strengthening of Pernod Ricard's equity in the short run and would be a first step towards the decrease of the debt in respect of the acquisition of Allied Domecq."

This conversion would result in the issuance of a maximum number of shares of 5,709,518 representing approximately 8.1% of the current share capital (prior the increase in share capital resulting from the acquisition of Allied Domecq), and a reduction of the debt in the amount of approximately € 490 M (in French GAAP).