Wine Industry Report

Bingen/ Germany, January 2006

The German based wine marketer and brand specialist RACKE INTERNATIONAL appointed Franz LIEVEN (46) as President of its European operations from January 1st 2006 onwards.

Racke, which operates own subsidiaries in Poland, the Czech Republic (Joint Venture with GIV, Italy) and the Netherlands, is a leading marketer of wine brands in Germany but has implemented successful wine marketing strategies throughout Europe and beyond. The success of the company is built on the development of outstanding wine innovations (such as GOLDEN KAAN) and the distribution of successful brands (like YELLOW TAIL).

Before joining the Racke Group, Lieven worked as a Managing Director for Brand Loyalty Germany GmbH. Previously, he acquired in-depths sales and marketing expertise at Eckes AG, Buena Vista Home Entertainment (Walt Disney) and Grundig AG. Lieven has a Diploma in Business Economics. He is reporting to Marian Kopp, President Racke International and Executive Member of the Board of the Racke Group. Bernd Weisser, former Head of Racke Europe, will leave the company by the end of January for a new job opportunity.

Franz Lieven

For further information please contact: p.kammerlander@racke.de

The family owned Racke Group, headquartered in Bingen/ Germany, was established in 1855. Racke, a leading marketer of wine brands in Germany, has implemented promising marketing strategies throughout Europe and beyond. The success of the company is built on the development of outstanding wine innovations (such as GOLDEN KAAN) and the distribution of successful brands (like YELLOW TAIL). To increase its impact in Europe, Racke has established several subsidiaries: RACKE NEDERLAND, RACKE POLSKA and RACKE CZ. In other European and overseas countries Racke cooperates with renowned distributors and agencies. Another important distribution channel is the global duty free business. Besides its trade portfolio the Racke Group also owns two ultra premium Pinot Noir estates in Sonoma, California, namely the Robert Stemmler Winery and The DONUM Estate.

websites:

www.branded.wines.com
www.racke.de
www.golden-kaan.com
www.robertstemmlerwinery.com
www.thedonumestate.com

GOLDEN KAAN in brief:

A 50/50 joint venture between Racke and KWV, which combines the expertise and strengths of both companies. Since its launch in 2003, Golden Kaan has established itself as one of the most successful South African newcomers, thus opening the South African wine segment in numerous international markets. To date Golden Kaan is successfully sold in more than 20 countries worldwide.

YELLOW TAIL in brief:

[yellow tail]® has proven to be the most successful launch of any wine in the history of the Australian wine industry and is regarded as a “global phenomenon”. The Shiraz is currently ranked as the No.1 selling 750ml red wine in the USA. Since January 1st 2006 Racke is actively trying to bring this US success also to Germany, Poland and the Czech Republic as well as the duty free business.