NESTLE WATERS ANNOUNCES THE CREATION OF A PARTNERSHIP IN ALGERIA AND MOVES INTO THE MAGHREB

* Nestlé Waters and the Boissons Gazeuses des Frères Zahaf Group
(formerly Boissons Sidi El Kebir) have signed a partnership
agreement in Algeria.
* Nestlé Waters is thus consolidating its leadership in the
Africa/Middle East region with its new key position in the
Maghreb country with the strongest growth perspectives.
Paris (France), 11 May 2005 - Nestlé Waters announced today the
creation of a partnership with the Zahaf brothers, owners of the
Boissons Gazeuses des Frères Zahaf Group (B.G.F.Z. - formerly
Boissons Sidi El Kebir), one of the leading players in the beverage
field in Algeria.
Nestlé Waters and the Zahaf Brothers are now associates in a joint
stock company called Société Source de TABERKACHENT, with Nestlé
Waters holding 51% of the capital. This corporation has taken over
all of the B.G.F.Z. group's bottled water business, the Sidi El Kebir
water brand and has a distribution agreement that will enable it to
take advantage of the network and expertise developed in Algeria by
the B.G.F.Z. group. The company will be headed by Mohamed ZAHAF.
The B.G.F.Z. group (formerly Boissons Sidi El Kebir) was founded in
the early 1980s by the ZAHAF family. It is specialised in the
production and distribution of bottled waters and carbonated
beverages. Since the start of the decade, it has been the exclusive
Algerian bottler and distributor of the Orangina and Mecca Cola
brands. In 2001, the B.G.F.Z. Group added the natural still mineral
water brand Sidi El Kebir to its business portfolio.
At the end of 2004, this brand was in second position on the
fledgling bottled water market in Algeria, with a substantial market
share. Sidi El Kebir water comes from a spring near the town of
Blida, 50 kilometres from Algiers.
At 550 million litres, for an annual bottled water consumption per
inhabitant of more than 16 litres at the end of 2004, the bottled
water market in Algeria displays a strong growth potential, with
annual growth in consumption at more than 22% in recent years.
Algeria will play an important role in Nestlé Waters' development
strategy for the Africa/Middle East region. Located in the heart of
the Maghreb countries, with 34 million inhabitants and perspectives
for double-figure growth in annual consumption per inhabitant, it
represents a veritable growth booster which should enable Nestlé
Waters to develop its positions in North Africa. The partnership thus
formed has set a strong growth objective for itself.
This positioning is part of Nestlé Waters' strategy, according to the
Chairman, Mr Carlo DONATI : "In addition to our 2 pillars, Europe and
North America, we hope to continue to take advantage of every
opportunity to consolidate our position in other regions of the world
without lowering our performance. North Africa offers real
development opportunities for our brands."
For the Chairman of the B.G.F.Z. group (formerly Boissons Sidi El
Kebir), Mr ZAHAF, "This partnership should enable the B.G.F.Z. group
(formerly Boissons Sidi El Kebir) to obtain the development resources
it needs to consolidate its activities in the bottled water sector
throughout Algeria. It is also an opportunity for the group to gain
access to the expertise of the global leader in bottled water, so as
to be able to offer Algerian consumers a larger line of products. In
conclusion, this partnership with Nestlé Waters will give us access
to other brands to consolidate the attractiveness of our product mix
throughout the country."
Nestlé Waters is a global player in the bottled water market, present
in 130 countries around the world, with a portfolio containing 77
brands (sold in all types of packaging, in all distribution
channels). Nestlé Waters holds the Number 1 global position in the
bottled water market, with a 17.3% market share and a turnover of
more than 5.2 billion euros (8.04 billion Swiss francs) in 2004. With
a 9.8% market share, Nestlé Waters is also the market leader for
bottled waters in the Africa/Middle East region.

For further information:
Press Contact: Hubert GENIEYS
Nestlé Waters External Communication
Tel.: + 33 (0) 1.41.23.38.00
Fax: + 33 (0) 1.41.23.37.67
E-Mail: press-contact@waters.nestle.com
Pressroom: www.press.nestle-waters.com

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