Wine Industry Report

Evans & Tate Limited (ASX:ETW) have received a conditional proposal
for the merger by way of scheme of arrangement of the Company with the
U.S. based wine company Yarraman Winery, Inc (Yarraman).

In addition, Yarraman has also lodged a Notice of Initial Substantial
Shareholder (Form 603) with the ASX today, stating that it has a relevant
interest in 18,387,998 ordinary shares (ETW) (representing 19.9% of the
issued capital of the Company). Yarraman’s Notice of Substantial
Shareholding states that the relevant interest arises from an agreement dated
today reached between Yarraman and Grape Expectations Enterprises Pty
Ltd, a company associated with Evans & Tate Director Franklin Tate. The
Company has no copy of this agreement.
The Company will be assessing the conditional offer and will inform the
market more fully as soon as possible.