Central European Distribution (CEDC)

Net cash flow used in investing activities

Net cash flows used in investing activities represents net cash used to acquire subsidiaries and fixed assets as well as proceeds from sales of fixed assets. Net cash used in investing activities for the twelve months ended December 31, 2007 was $159.1 million as compared to $41.9 million for the twelve months ended December 31, 2006. The primary expenditures in 2007 were the additional purchase of shares in Polmos Bialystok for $132.8 million, and investment in the new rectification facilities for $16 million. Included in cash flows from investing activities are net cash inflows of $5.0 million from the final purchase price adjustment from our Botapol acquisition completed in 2005.

Net cash flow used in investing activities

Net cash flows used in investing activities represent net cash used to acquire subsidiaries and fixed assets as well as proceeds from sales of fixed assets. Net cash used in investing activities for the three months ended March 31, 2009 was $28 thousand as compared to $178.9 million for the three months ended March 31, 2008. The primary cash outflows from investing activities for the three months ended March 31, 2009 were for maintenance capital expenditures.

Net cash flow used in investing activities

Net cash flows used in investing activities represent net cash used to acquire subsidiaries and fixed assets as well as proceeds from sales of fixed assets. Net cash used in investing activities for the twelve months ended December 31, 2008 was $667.9 million as compared to $159.1 million for the twelve months ended December 31, 2007. The primary cash outflows from investing activities for the twelve months ended December 31, 2008 were the cash consideration and expenses related to the Parliament, Whitehall and Russian Alcohol Group acquisitions and the acquisition of $103.5 million in subordinated exchangeable notes in connection with the investment in Russian Alcohol Group.

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Net cash flow used in investing activities

Net cash flows used in investing activities represents net cash used to acquire subsidiaries and fixed assets as well as proceeds from sales of fixed assets. Net cash used in investing activities for the twelve months ended December 31, 2007 was $159.1 million as compared to $41.9 million for the twelve months ended December 31, 2006. The primary expenditures in 2007 were the additional purchase of shares in Polmos Bialystok for $132.8 million, and investment in the new rectification facilities for $16 million. Included in cash flows from investing activities are net cash inflows of $5.0 million from the final purchase price adjustment from our Botalpol acquisition completed in 2005.

Net cash flow used in
investing activities

Net cash flows used in investing activities represent net cash used to acquire subsidiaries and fixed assets
as well as proceeds from sales of fixed assets. Net cash used in investing activities for the twelve months ended December 31, 2008 was $667.9 million as compared to $159.1 million for the twelve months ended December 31, 2007. The primary
cash outflows from investing activities for the twelve months ended December 31, 2008 were the cash consideration and expenses related to the Parliament, Whitehall and Russian Alcohol Group acquisitions and the acquisition of $103.5 million in
subordinated exchangeable notes in connection with the investment in Russian Alcohol Group.

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Net cash flow used in investing activities

Net cash flows used in investing activities represent net cash used to acquire subsidiaries and fixed assets as well as proceeds from sales of fixed assets. Net cash used in investing activities for the nine months ended September 30, 2008 was $659.2 million as compared to $155.7 million for the nine months ended September 30, 2007. The primary cash outflows from investing activities for the nine months ended September 30, 2008 were the cash consideration and expenses related to the Parliament, Whitehall and Russian Alcohol Group acquisitions and the acquisition of $103.5 million in subordinated exchangeable notes in connection with the investment in Russian Alcohol Group.

Net cash flow used in investing activities

Net cash flows used in investing activities represent net cash used to acquire subsidiaries and fixed assets as well as proceeds from sales of fixed assets. Net cash used in investing activities for the six months ended June 30, 2008 was $369.6 million as compared to $140.3 million for the six months ended June 30, 2007. The primary cash outflows from investing activities for the six months ended June 30, 2008 were the cash consideration and expenses related to the Parliament and Whitehall acquisitions.

Net cash flow used in investing activities

Net cash flows used in investing activities represents net cash used to acquire subsidiaries and fixed assets as well as proceeds from sales of fixed assets. Net cash used in investing activities for the three months ended March 31, 2008 was $178.9 million as compared to $88.7 million for the three months ended March 31, 2007. The primary cash outflows from investing activities for the three months ended March 31, 2008 were the cash consideration and expenses related to the Parliament acquisition, which was closed on March 11, 2008.

Net cash flow used in investing activities

Net cash flows used in investing activities represents net cash used to acquire subsidiaries and fixed assets as well as proceeds from sales of fixed assets. Net cash used in investing activities for the twelve months ended December 31, 2006 was $41.9 million as compared to $460.1 million for the twelve months ended December 31, 2005. The primary expenditures in 2006 were the Bols Hungary acquisition that took place in July 2006 which resulted in cash outflow of $20.4 million, and the increase of shareholding in Polmos Bialystok for $11.5 million following our tender offer in December 2006. Included in cash flows from investing activities are net cash inflows of $4.8 million from sales of financial assets.

Net cash flow used in investing activities

Net cash flows used in investing activities represents net cash used to acquire subsidiaries and fixed assets as well as proceeds
from sales of fixed assets. Net cash used in investing activities for the twelve months ended

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December 31, 2007 was $159.1 million as compared to $41.9 million for the twelve months ended December 31, 2006. The primary expenditures in 2007
were the additional purchase of shares in Polmos Bialystok for $132.8 million, and investment in the new rectification facilities for $16 million. Included in cash flows from investing activities are net cash inflows of $5.0 million from the final
purchase price adjustment from our Botalpol acquisition completed in 2005.

Net cash flow used in investing activities

Net cash flows used in investing activities primarily represents net cash used to acquire subsidiaries and fixed assets offset by proceeds from sales of fixed assets. Net cash used in investing activities for the nine months ended September 30, 2007 was $155.7 million as compared to $29.7 million for the nine months ended September 30, 2006. The primary cash outflows from investing activities for the nine months ended September 30, 2007 were the acquisition of additional shares of common stock of Polmos Bialystok that took place in February 2007 and June 2007, which resulted in a cash outflow of $132.8, million, the acquisition of PHS for $7.3 million that took place in July 2007 and the acquisition of a small distributor in Northeast Poland for $1.2 million that took place in March 2007. Investment in fixed assets of $22.3 million are represented primarily by investment in new rectification lines at our production facilities of approximately $14.5 million, and the remaining amount has been invested in maintenance projects including vehicles, IT, intangibles and other fixed assets.

In January of 2007, the Company received a payment of $5.0 million related to the Botapol acquisition completed in August 2005. According to the acquisition agreement, up to $5.0 million of the cash consideration paid for Botapol was required to be reimbursed to the Company if the weighted average of the closing price of the Company’s common stock exceeded $27.1 per share at any time during the period from twelve to eighteen months after the closing of the Bols Acquisition. This condition was met and the Company has recorded the cash inflow.

Net cash flow used in investing activities

Net cash flows used in investing activities represents primarily net cash used to acquire subsidiaries and fixed assets offset by proceeds from sales of fixed assets. Net cash used in investing activities for the six months ended June 30, 2007 was $140.3 million as compared to $3.0 million for the six months ended June 30, 2006. The primary cash outflows from investing activities for the six months ended June 30, 2007 were the acquisition of additional shares of common stock of Polmos Bialystok that took place in February 2007 and June 2007, which resulted in cash outflow of $134.0 million . Investment in fixed assets of $14.0 million are represented primarily by investment in new rectification lines at our production facilities of $5.7 million, $2.3 million spent on land and buildings primarily in Polmos Bialystok, $1.9 million spent on vehicles, $1.7 million spent on equipment and the remaining amount has been invested in IT, intangibles and other fixed assets.

In January of 2007, the Company received a payment of $5.0 million related to the Botapol acquisition completed in August 2005. According to the acquisition agreement, up to $5.0 million of the cash consideration paid for Botapol was required to be reimbursed to the Company if the weighted average of the closing price of the Company’s common stock exceeded $27.1 per share at any time during the period from twelve to eighteen months after the closing of the Bols Acquisition. This condition was met and the Company has recorded the cash inflow.

Net cash flow used in investing activities

Net cash flows used in investing activities represents net cash used to acquire subsidiaries and fixed assets as well as proceeds from sales of fixed assets. Net cash used in investing activities for the three months ended March 31, 2007 was $88.7 million as compared to $1.2 million for the three months ended March 31, 2006. The primary cash outflows from investing activities for the three months ended March 31, 2007 were the acquisition of additional shares of common stock of Polmos Bialystok that took place in February 2007, which resulted in cash outflow of $90.9 million, as well as net cash outflows of $2.8 million for purchases of fixed assets.

In January of 2007, the Company received a payment of $5 million related to the Botapol acquisition completed in August 2005. According to the acquisition agreement, up to $5.0 million of the cash consideration paid for Botapol was required to be reimbursed to the Company if the weighted average of the closing price of the Company’s common stock exceeded $27.1 per share at any time during the period from twelve to eighteen months after the closing of the Bols Acquisition. This condition was met and the Company has recorded the cash inflow.

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CENTRAL EUROPEAN DISTRIBUTION CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS

Amounts in tables expressed in thousands, except per share information

Net cash flow used in investing activities

Net cash flows from investing activities represent net cash used to acquire subsidiaries and fixed assets as well as proceeds from sales of fixed assets. Net cash used by investing activities for the twelve months ended December 31, 2005 was $460.1 million as compared to $9.3 million for the twelve months ended December 31, 2004. The primary drivers for the increase were the Bols acquisition that took place in August 2005 for $150.5 million, and the Bialystok acquisition that was finalized in October 2005 for $349.7 million. Included in cash flows from investing activities are net cash inflows of $35.6 million from sales of investments which were acquired as part of the Bialystok acquisition.

Net cash flow used in investing activities

Net cash flows used in investing activities represent net cash used to acquire subsidiaries and fixed assets as well as proceeds from sales of fixed assets. Net cash outflows used by investing activities for the nine months ended September 30, 2006 was $29.7 million as compared to cash outflows of $410.2 million for the nine months ended September 30, 2005. Cash used for investment of fixed assets of $7.0 million for the nine months ended September 30, 2006 includes investments in rectification line of $2.8 million, warehouse of $1.3 million and modernization of existing production facility of $0.8 million. Acquisitions include two business acquisitions for a combined $22.4 million that were closed in July and September 2006.

Net cash flow used in investing activities

Net cash flows used in investing activities represent net cash used to acquire subsidiaries and fixed assets as well as proceeds from sales of fixed assets. Net cash outflow used in investing activities for the six months ended June 30, 2006 was $3.0 million as compared to cash outflow of $1.7 million for the six months ended June 30, 2005. Cash used for investment of fixed assets of $3.4 million for the six months ended June 30, 2006 include additions of motor vehicles of $798,500, IT hardware and software of $111,200, equipment of $249,200 and work in progress of $637,300. Acquisitions include three business acquisitions for $1.9 million that were closed in January and May 2006. Cash inflows related to sales of investments of $1.9 million.

Net cash flow used in/from investing activities

Net cash flows used in/from investing activities represent net cash used to acquire subsidiaries and fixed assets as well as proceeds from sales of fixed assets. Net cash outflow used by investing activities for the three months ended March 31, 2006 was $2.4 million as compared to cash inflow of $0.1 million for the three months ended March 31, 2005. Cash used for investment of fixed assets of $1.2 million for the three months ended March 31, 2006 include additions of motor vehicles of $453,000, IT hardware and software of $230,000 and leased motor vehicles of $222,000. Acquisitions of subsidiaries include two business acquisitions for $1.2 million that were closed in January 2006.