Wine Industry Report

Three prestigious wine estates: Tenuta dell’Ornellaia (Bolgheri), Castel Giocondo (Montalcino) and Luce della Vite (Montalcino), all owned by Marchesi de’ Frescobaldi, join together in a new fine wine partnership with SPI Group and Michael Mondavi.

Marchesi de’ Frescobaldi,
leader in the Italian wine sector, have announced the grouping together of
three internationally renowned wine estates, Tenuta dell’Ornellaia, Castel
Giocondo and Luce della Vite, in a new holding, Tenute di Toscana which has
entered into a partnership with two prominent international corporations.

This important transaction, completed by Marchesi de’ Frescobaldi with
the advice of Mediobanca, Milan and the law firm Pazzi, Florence,
establishes a holding of three prestigious wine estates, part of whose
capital was offered to international investors. Following a long and
careful selection of potential partners among leading international
operators, Marchesi de’ Frescobaldi signed an agreement with SPI Group,
Geneva and MIP, Napa CA, owned by the Michael Mondavi family. SPI Group,
advised by HSBC, London and the law firm Lovells, Milan, is one of the most
important vodka producers in the world, whose brands include Stolichnaya
and Moskovskaya. Michael Mondavi, the long time American partner of
Frescobaldi and co-founder of Luce della Vite, advised by the law firm
Contri, Florence, will continue to contribute to the success of the
Marchesi de’ Frescobaldi group by operating through his import company,
Folio Wine Partners, as the exclusive importer of all the group’s brands in
the United States.

After a reserved capital increase of Tenute di Toscana, Marchesi de’
Frescobaldi’s holding is 72.29%. The board will be composed of eight
members, six elected by Marchesi de’ Frescobaldi, including Michael
Mondavi, and two elected by the SPI Group; Yuri Shefler (SPI chairman) and
Andrey Skurikhin (SPI deputy chairman).

Tenute di Toscana is primarily a financial vehicle, therefore the
management, production and distribution will remain unchanged in all three
Tuscan estates. The partnership with SPI Group and MIP (Michael Mondavi)
brings important resources and capabilities to Tenute di Toscana and
creates significant synergies for the new company.

“Comment Marchesi de’ Frescobaldi”
“With great satisfaction — says Vittorio Frescobaldi, Chairman of
Marchesi de’ Frescobaldi Spa — we announce the birth of Tenute di Toscana,
whose establishment was possible thanks to two important financial
partners; SPI Group, controlled by Yuri Shefler, world leader in the vodka
production, and MIP, owned by our long time partner Michael Mondavi. The
new shareholders will certainly add value to the project and will assist in
further strengthening the international reputation of the Tenute di Toscana
wines.”

“Comment SPI group”
Andrey Skurikhin, Deputy Chairman of SPI Group, stated:
“We are very proud to have become partners with the Frescobaldi family
and with Michael Mondavi. The investment in Tenute di Toscana and its
prestigious brands is in line with the SPI strategy and we are privileged
to be associated with some of the finest wine estates in Italy. We look
forward to working with the new company and contributing to its success and
development.”

“Comment Michael Mondavi”
Michael Mondavi affirmed, “It is a pleasure to continue my association
with the Frescobaldi family, which began 11 years ago with the partnership
of Luce della Vite, as importer of the wines of the Marchesi de’
Frescobaldi Group in the USA, and now as shareholder in Tenute di Toscana.
The creation of Tenute di Toscana by the Frescobaldi family can only
further strengthen both the quality and image of these three great
estates.”

Marchesi de’ Frescobaldi
The name Frescobaldi has roots in Italian and Tuscan art, culture and
history which go back for more than 700 years, and the family has been
producing wine since the XIV century. Among the best known wines produced
under the Frescobaldi name are: Nipozzano, Montesodi, Mormoreto,
Castelgiocondo Brunello, and Luce. The Marchesi de’ Frescobaldi Group
recently acquired 100% of Tenuta dell’Ornellaia which produces the world
acclaimed wines Masseto and Ornellaia. The Group revenue in 2005 amounted
to euro 57.600.000. Frescobaldi owns vineyards in Tuscany and Friuli
extending over 1.100 hectares (2.700 acres.) Their estates in Tuscany
include Tenuta dell’Ornellaia, Castel Giocondo, Tenuta di Luce della Vite,
Castello di Pomino, Castello di Nipozzano, Tenuta di Castiglioni and, in
Collio (Friuli), Tenuta Conti Attems.

SPI Group
Established in 1997, SPI Group is an international holding primarily
engaged in the production and distribution of alcoholic beverages as well
as the real estate and agriculture business. SPI Group has grown both
organically and through acquisitions and today owns over 130 international
and domestic brands of alcoholic beverages. The core brands are
Stolichnaya, Moskovskaya, Kremlyovskaya, Kaznacheyskaya and Riga’s Black
Balsam. The annual sales of the Group amount to more than 100 million
litres of spirits. SPI Group’s products are distributed in more that 120
countries.

MIP-Michael Mondavi family
Folio Fine Wine Partners, founded in 2004 by the Michael Mondavi
family, is an importer, agency and producer of quality wines from the
world’s premiere and emerging wine regions. Folio Fine Wine Partners
currently provides sales, marketing and public relations services to wine
brands from Austria, California, Italy, New Zealand and Spain.
Headquartered in Napa, California, Folio Fine Wine Partners was built to
become the pre-eminent purveyor of the finest wines from the world’s best
wine growing regions with a focus on the customer, and with a commitment to
applying the highest standards of excellence across all business practices.