Wine Industry Report

2007 revenues: 359.4 millions euros higher than target.

In a Champagne wine market that was trending up (+5.3% in volume, 2007 12 months, source: CIVC), the BOIZEL CHANOINE CHAMPAGNE Group generated 359.4 million euros in consolidated revenues over 2007, higher than the
target.

GROWTH IN BUSINESS
The BOIZEL CHANOINE CHAMPAGNE Group’s consolidated annual revenues came to 359.4 million euros, up 15.5% from the 311.3 million euros recorded in 2006. Revenues for 2007 reflect the balance for the stock reduction program launched in 2006 in line with efforts to restructure the Group’s debt, representing 37 million euros, compared with 45 million euros last year. Naturally, they also factor in 12 months of business for the new subsidiaries Maison BURTIN and Champagne LANSON compared with only the last nine months of 2006. Excluding the stock reduction program, and including revenues generated by Maison BURTIN and Champagne LANSON in Q1 2006, revenues would have come out at 322.4 million euros for 2007, compared with 302 million euros in 2006, representing an increase of 6.8%. On the previous BOIZEL CHANOINE CHAMPAGNE Group scope, revenues totaled 117.4 million euros, compared with 90 million euros in 2006. Out of this 27.4 million euro increase, 18.7 million euros were contributed by the CGV brokerage subsidiary, whose revenues are traditionally subject to significant fluctuations. Excluding CGV, sales on the former scope represent 91.1 million euros, compared with 81.4 million euros in 2006, up 12%. The CHANOINE and TSARINE brands have notably benefited from the commercial synergies implemented with Maison BURTIN and Champagne LANSON. The PHILIPPONNAT and DE VENOGE Houses, specialized in traditional luxury and selective retail channels, have also generated good levels of sales.UPGRADING POLICY
The total number of bottles of Champagne wine sold by the Group’s Houses came to 21.6 million bottles, up 3.3% in volume compared with 2006 (12 months), reflecting the Group’s focus on developing the value of its Houses.

The percentage of international sales for the entire BOIZEL CHANOINE CHAMPAGNE Group came to 46%, compared with 45% in 2006.