Wine Industry Report

The consolidated financial information has been prepared on the basis of IFRSs, as adopted by the European Union.
In the first nine months of 2006, the Group Baron de Ley has reached a consolidated net sales of €56,173k — a 5.2% increase over 2005 figures for the same period.

Sales of bottled wine amount to €53,162k, so that is 95% of sales volume and rises 2.6% over the figures reached in the previous year.

Crianza, reserva, and gran reserva wines represent 91% of the net sales and have grown 1.8% in the last nine months.

Sales to export markets were €17,926k, 32% of total turnover and an increase of 11%.

The EBITDA has grown 2.8% compared to September 2005 and now represents 44% of the net sales.

The Profit Before Taxes amount to €17,422k — the rate of growth in the 3rd quarter of 2006 was of 2.2%.

Finally, Consolidated Results for the period, €13,119k represent a margin over sales in the ratio of 23%.

Investments made in fixed assets by the Baron de Ley Group during mentioned period were €8,997k, of which 33% were for new barrels and 30% for new land and vineyards plantations.

Finally, the Cash Flow generated, reach €19,835k which represents 35% of the net sales.