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March 1, 2002

Kirin to Establish New Department at Head Office
to Consolidate Kirin-Seagram Marketing Functions

Enhancing Kirin's Growth Platform in Marketing and Sales as a
Comprehensive Alcoholic Beverage Company


Kirin Brewery Co., Ltd. (President: Koichiro Aramaki) will establish a new Spirits & Wine Department within the Alcoholic Beverage Sales and Marketing Dept. on April 1, 2002. The new department will consolidate marketing of spirits, wines and other products of Kirin-Seagram Ltd. (President: Motoichi Yonei), and concentrate distribution functions, including imports and exports, at the Kirin Group head office. Kirin-Seagram will become a manufacturer of domestic spirits, wines and other products, and will change its name to Kirin Distillery Co. Ltd. as of July 1. The company's distillery in Gotemba, Shizuoka Prefecture, will carry out production of domestic brands such as Robert Brown and Boston Club.

Additionally, in February 2002, Kirin signed an agreement with Pernod Ricard of France (CEO: Patrick Ricard) and Diageo of the UK (CEO: Paul Walsh) to maintain its exclusive distribution rights in Japan for the major brands of the former Seagram Co. ,such as Chivas Regal,that are owned by the two companies.

These two moves will enhance the Kirin Group's growth platform as a comprehensive alcoholic beverage business in the areas of marketing and sales.

The newly established Spirits & Wine Department will coordinate marketing of Kirin-Seagram's spirits, wines and other products. The Alcoholic Beverage Sales and Marketing Dept., which was reorganized under a new name in October 2001, will comprise seven departments to create and implement consistent marketing and sales strategies in the comprehensive alcoholic beverage business.

The January 2001 integration of sales divisions of Kirin-Seagram with those of Kirin Brewery has improved Kirin's ability to carry out sales strategies that go beyond alcoholic beverage categories. The move has begun to bear fruit, especially in the mass merchandiser and restaurant markets, as illustrated by a 5.4 percent year-on-year gain in sales volume for Chivas Regal. Through the new consolidation, Kirin will create the optimum marketing and sales structure for growing its comprehensive alcoholic beverage business. Moreover, consolidation of distribution functions, including imports and exports, will promote greater synergy and efficiency for the Kirin Group as a whole.

In December 2000, Pernod Ricard and Diageo signed an agreement to acquire Seagram's alcoholic beverage business from Vivendi of France (CEO: Jean-Marie Messier/Post-merger name: Vivendi Universal), which merged with Seagram Co. of Canada in September 2000. Kirin signed an agreement with the two companies in October 2001 for acquisition of the global business rights to the Four Roses brand, part of the alcoholic beverage business acquired by the two companies. The latest agreement provides Kirin with continued distribution rights in Japan for a number of the former Seagram's major brands, such as Chivas Regal.

The Kirin Group will continue to focus on strengthening its brand equity in various alcoholic beverage categories while bolstering its ability to offer comprehensive sales proposals. With diversification in customers' alcoholic beverage consumption patterns and the erosion of borders between different categories, our goal is to "create value that enriches customer lifestyles" through our comprehensive alcoholic beverage business.


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