Anheuser-Busch Executives Express Confidence in Outlook

    Anheuser-Busch Executives Express Confidence in Outlook for Growth 
 
    ST. LOUIS, May 22 -- Anheuser-Busch (NYSE: BUD) executives expressed
confidence in the company's growth outlook during presentations given today at
the company's BUD Investor Conference held in St. Louis.  
    "By strategically broadening our U.S. beer portfolio to access high-margin 
growth opportunities, Anheuser-Busch is much better positioned for growth than 
we were just eight months ago," August A. Busch IV, president and chief 
executive officer of the company, said to investors and analysts. Busch 
proceeded to outline management's vision of building Anheuser-Busch into the 
leading global beer and specialty beverage company. At the core of this vision 
is producing and marketing the highest quality premium beer and select  
non-beer beverages in profitable and growing markets, where the company's 
competitive advantages can drive sustainable long-term growth and enhance 
shareholder value. 
    Senior managers from Anheuser-Busch's U.S. beer company presented their 
plans to grow the company's core trademark brands and actively pursue high-end 
growth opportunities. The company is making good progress in digesting the 
series of new growth initiatives recently undertaken and managing the added 
complexity associated with an expanded portfolio. In citing incremental 
revenue growth as a key objective, the executives stated that the pricing 
environment in the U.S. beer industry is favorable. In addition,  
sales-to-retailers in May have rebounded after a disappointing April and are 
now up 1 percent quarter to date.(1) 
    The world beer market also plays an increasingly important role in the 
company's global vision. In their presentations, the senior managers of the 
company's international beer business reported that international net income 
has grown an average of 20 percent per year since 1999. While the company's 
investment in Grupo Modelo currently provides the vast majority of 
international profits, the company also is building an important leadership 
position in China, the largest and fastest-growing beer market in the world. 
Elsewhere in the world, the company has recently announced ventures to pursue 
new growth opportunities in emerging markets, such as India, Russia, Colombia 
and Panama.  
    The strategies of Anheuser-Busch's successful packaging and entertainment 
businesses, which complement the company's beer operations and contribute more 
than $375 million in operating profits annually, also were highlighted at the 
meeting. 
    Restoring profit margin growth is a key element of the company's vision. 
The company's long-term earnings model continues to target earnings per share 
growth in the 7 to 10 percent range. Management expects the company's 2007 
earnings per share increase to exceed its long-term model's range. The 
company's second quarter increase in earnings per share, however, is expected 
to be below this range with earnings growth accelerating in the second half of 
the year.(2) 
 
    Other Matters 
    As previously announced, Anheuser-Busch Companies' 2007 BUD Investor 
Conference is being broadcast live over the Internet today beginning at 9:30 
a.m. ET. A replay of the webcast will be available on the company's Web site. 
For details visit the company's site on the Internet at  
http://www.anheuser-busch.com. 
 
    Notes 
    1. Sales-to-retailers results are on a comparable selling day adjusted  
       basis and include the contribution of newly acquired and alliance  
       brands. Core brand sales-to-retailers are down 1 percent quarter to  
       date. 
 
    2. Calculation of 2006 Earnings per Share for 2007 Comparison Purposes 
 
       The table below sets forth the assumption used in comparing 2007  
       earnings per share expectations to 2006 results. 
 
 
 
       2006 Earnings Per Share              2nd Quarter    Full Year 
       Reported                                $0.82         $2.53 
       Texas Income Tax Legislation Benefit    (0.01)        (0.01) 
         Excluding One-Time Benefit            $0.81         $2.52 
 
 
       In accompanying presentations, the following terms are used: 
 
    3. Domestic revenue per barrel is calculated as net sales generated by  
       the company's U.S. beer operations on barrels of beer sold,  
       determined on a U.S. GAAP basis, divided by the volume of beer  
       shipped to U.S. wholesalers. 
 
    4. Return on capital employed on a consolidated basis is computed as 12  
       months of net income plus after-tax net interest (interest expense  
       less interest capitalized) divided by net investment. Net investment  
       is defined as total assets less non-debt current liabilities. The  
       company does not allocate interest expense to subsidiaries, so this  
       is not a factor in computing return on capital employed on a  
       business segment basis. 
 
    5. The cash flow to total debt ratio is defined as: operating cash flow  
       before the change in working capital, adjusted for pension  
       contributions less service costs; divided by total debt, adjusted to  
       include the funded status of the company's single-employer defined  
       benefit pension plans. 
 
    This release contains forward-looking statements regarding the company's 
expectations concerning its future operations, earnings and prospects. On the 
date the forward-looking statements are made, the statements represent the 
company's expectations, but the company's expectations concerning its future 
operations, earnings and prospects may change. The company's expectations 
involve risks and uncertainties (both favorable and unfavorable) and are based 
on many assumptions that the company believes to be reasonable, but such 
assumptions may ultimately prove to be inaccurate or incomplete, in whole or 
in part. Accordingly, there can be no assurances that the company's 
expectations and the forward-looking statements will be correct. Important 
factors that could cause actual results to differ (favorably or unfavorably) 
from the expectations stated in this release include, among others, changes in 
the pricing environment for the company's products; changes in U.S. demand for 
malt beverage products, including changes in U.S. demand for other alcohol 
beverages; changes in consumer preference for the company's malt beverage 
products; changes in the distribution for the company's malt beverage 
products; changes in the cost of marketing the company's malt beverage 
products; regulatory or legislative changes, including changes in beer excise 
taxes at either the federal or state level and changes in income taxes; 
changes in the litigation to which the company is a party; changes in raw 
materials prices; changes in packaging materials costs; changes in energy 
costs; changes in the financial condition of the company's suppliers; changes 
in interest rates; changes in foreign currency exchange rates; unusual weather 
conditions that could impact beer consumption in the U.S.; changes in 
attendance and consumer spending patterns for the company's theme park 
operations; changes in demand for aluminum beverage containers; changes in the 
company's international beer business or in the beer business of the company's 
international equity partners; changes in the economies of the countries in 
which the company's international beer business or its international equity 
partners operate; future acquisitions or divestitures; and the effect of stock 
market conditions on the company's share repurchase program. Anheuser-Busch 
disclaims any obligation to update or revise any of these forward-looking 
statements. Additional risk factors concerning the company can be found in the 
company's most recent Form 10-K. 
  
SOURCE  Anheuser-Busch 
    -0-                             05/22/2007 
    CONTACT:  Kelli Powers of Anheuser-Busch, [phone], or Investor 
Relations, [phone] 
    (BUD) 
 




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