Quilmes Industrial (Quinsa) S.A. (NYSE:LQU; "Quinsa" or the "Company") today announced that its subsidiary Cerveceria y Malteria Quilmes S.A. ("CMQ") has reached an agreement with PepsiCo Inc., Citibank, Bank Boston and certain of their affiliates (the "Selling Shareholders") on the final adjustment to the price paid for the 51.17% stake in BAESA it acquired on December 6, 1999.

The adjustment, based on working capital variations that occurred prior to CMQ's purchase of BAESA, has resulted in a US$ 7.0 million reduction in the price paid for its stake to US$ 73.6 million, or US$ 4.86 per share.

The total amount of the price reduction will be reimbursed by the Selling Shareholders to CMQ.

In accordance with its agreements with the Selling Shareholders, CMQ will be tendering for the BAESA shares it has not already acquired at a price per share yet to be determined, which in any event will be no lower than US$ 4.86.

CMQ intends to initiate the appropriate filings with the Argentine Comision Nacional de Valores and the Securities and Exchange Commission of the U.S. within the next 30 days.

About Quinsa

Quinsa is a Luxembourg-based holding company, which controls 85 percent of Quilmes International (Bermuda) Ltd., ("QIB"). The remaining 15 percent share is owned, since 1984, by Heineken International Beheer B.V. ("Heineken"). Heineken Technical Services B.V. renders technical assistance to the operating companies. Quinsa, through QIB, controls beverage and malting businesses in five Latin American countries. Its beer brands are market leaders in Argentina, Paraguay and Uruguay and have a strong presence in Bolivia and Chile. In Paraguay, Quinsa's soft drink business is the market leader. Quinsa has announced it is negotiating the sale of its Paraguayan soft drinks business to The Coca-Cola Export Corporation. The Company also owns a controlling interest in the largest PepsiCo bottler in Argentina, which it acquired in December, 1999. Quinsa's common and preferred shares are listed on the Luxembourg Stock Exchange (Reuters codes: QUIN.LU and QUINp.LU). Quinsa's American Depository Shares, representing the Company's preferred shares, are listed on the New York Stock Exchange (NYSE:LQU).