Business Wire, All Rights Reserved

TORONTO — Cott Corporation (NNM:COTTF, TSE/ME:BCB) announced today that its UK subsidiary, Cott UK Limited, has acquired, from Hero AG, 100% of the share capital of Hero Drinks Group (UK) Limited, which is the largest supplier of retailer brand carbonated soft drinks ("CSD") in the PET bottle format in the UK. Its state of the art manufacturing facilities are capable of producing 67 million 8 oz. equivalent cases per year and manufacture approximately 400 million PET preform bottles.

Hero Drinks Group (UK) Limited is the biggest acquisition in Cott's history and creates the third largest supplier in the carbonated soft drink take-home market and the largest supplier of retailer brand beverages in the UK by combining the number two (Cott) and number three (Hero Drinks Group (UK) Limited) companies within the Specialty Beverage Segment. This acquisition will enable Cott to leverage its UK management infrastructure and positions the Company to capitalize on the opportunities available for further consolidation within the soft drink industry in the UK.

Hero Drinks Group (UK) Limited's revenues during the twelve months ended October 31, 1997 were approximately Cdn$147 million. After the acquisition Cott's share of the UK CSD take-home market will increase from approximately 9% to approximately 18% based on volume. The acquisition of Hero Drinks Group (UK) Limited will broaden Cott's customer base to include all the major grocery chains, as well as expand relationships with Cott's current customers.

The purchase price is comprised of a payment of 47 million Pounds Sterling on closing, and a deferred payment of up to 20.5 million Pounds Sterling depending on the future profitability of the combined businesses over the next five years. The 47 million Pounds Sterling paid on closing was financed by a UK financial institution.

© 1997, Business Wire