OFFERING MEMORANDUM CONFIDENTIAL - Coca Cola İçecek

General and Administration ExpensesGeneral and administration expenses increased by YTL0.1 million, or 0.2%, from YTL40.8 million in 2004 toYTL40.9 million in 2005. Of the increase, YTL1.9 million is attributable to the inclusion of Efes Invest's results fromNovember 15, 2005. On a CCI standalone basis, general and administration expenses decreased by YTL1.8 million, or 4.4%,from YTL40.8 million in 2004 to YTL39.0 million in 2005. The decrease was primarily due to the effect of the inflationadjustment on salary increases that were slightly less than the inflation rate, and a reduction in headcount. In addition,depreciation expenses decreased due to full depreciation of vehicles and IT equipment partially offset by an increase in rentalexpenses for IT equipment and other IT expenses.Other Operating Income (Expense)Other operating income consists of gain on disposal of fixed assets. Other operating expense consists of impairmentlosses and loss on disposal of fixed assets. Other operating income (expense) was an income of YTL3.1 million in 2004 and anexpense of YTL0.8 million in 2005. No income or expense was attributable to the inclusion of Efes Invest's results fromNovember 15, 2005.We had impairment losses of YTL2.3 million and YTL3.1 million in 2004 and 2005, respectively. The loss in 2005was primarily attributable to the writedown of a PET blowing machine. The amount in 2004 includes the writedown of PETblowing machines and coolers, offset in part by the reversal of a previously accrued writedown as a result of the sale of refillablePET bottling equipment which had been written down.We had a gain on disposal of fixed assets of YTL5.4 million and YTL2.3 million in 2004 and 2005, respectively. Thegain in both years is primarily attributable to the sale of refillable PET production lines, cold drink equipment and vehicles.Profit from OperationsProfit from operations increased by YTL42.2 million from YTL74.4 million in 2004 to YTL116.6 million in 2005 as aresult of the factors discussed above. Of the increase, YTL2.1 million is attributable to the inclusion of Efes Invest's results fromNovember 15, 2005. As a percentage of net sales, profit from operations 2005 reached 9.8% compared to 6.9% in the 2004period.Financial (Expense) Income, NetFinancial (expense) income, net consists of interest income, interest expense and the net foreign exchange gain/(loss)incurred on the remeasurement of borrowings. Financial expense, net increased by YTL1.8 million, or 28.6%, fromYTL6.3 million in 2005 to YTL8.1 million in 2005.Interest income decreased by YTL2.5 million, or 45.5%, from YTL5.5 million in 2004 to YTL3.0 million in 2005. Thedecrease was a result of a decrease in both interest rates and amounts invested.Interest expense increased by YTL2.5 million, or 26.3%, from YTL9.5 million in 2004 to YTL12.0 million in 2005,due to higher debt balances in the 2005 period (including the incurrence of debt to finance the acquisition of our shares byCCSD, offset in part by decreased interest rates. Short-term borrowings (primarily with 12-month maturities, including thecurrent portion of long-term debt and short-term capital lease obligations) amounted to YTL64.7 million as of December 31,2004 and YTL331.3 million as of December 31, 2005. Long-term debt amounted to YTL10.9 million as of December 31, 2004and YTL8.7 million as of December 31, 2005.Foreign exchange loss amounted to YTL2.2 million in 2004 compared to a gain of YTL1.0 million in 2005. 2004included the foreign exchange loss resulting from the significant depreciation of the Turkish Lira against the U.S. dollar inMay 2004 at which time a significant portion of our U.S. dollar borrowings was repaid. In 2005, we incurred foreign exchangeincome due to the appreciation of the New Turkish Lira against the U.S. dollar as of December 31, 2005 compared to its value asof December 31, 2004.Other (Expense) Income, NetOther (expense) income, net includes non-recurring items such as a tax amnesty payment and public offering expensesand the foreign exchange gain incurred on the remeasurement of current receivables and payables balances.