(Daniel Martinů) Plzeňský Prazdroj (PP) released its 1998 consolidated results at a press conference yesterday. IAS consolidated net profit reached CZK 273 mil. and CAS preliminary consolidated net profit stood at CZK 226 mil. Unconsolidated net profit was CZK 181 mil. (CAS). The consolidation figures were influenced by good underlying performance, especially at the Ragutis brewery, overall lower material and energy consumption, interests expenses and by exchange gains. For comparison, the consolidated IAS profit in 1997 was zero. IAS consolidated sales were CZK 7.1 bil. in 1998 and beer production reached 5.3 mil. hectoliters (including licensee production at Ragutis and Hurbanovo breweries). A sale of PP and Radegast (combined into a new entity) to a strategic partner (Heineken, Anheuser-Busch, Carlsberg, SAB, BBAG) is likely. Given the possibility of a buyout after the sale to a strategic investor, we recommend to hold PP shares, or to buy them for speculative purpose.