Wine Industry Report

First-Quarter 2008 Revenue Stable.
Vranken-Pommery Monopole, a major producer and distributor
of Champagne, today released its business review for the first three months of 2008.

BUSINESS ANALYSIS¹
Consolidated revenue amounted to €41.8 million in the first three months of 2008, almost unchanged from the first quarter of 2007.
“In 2008, we intend to continue building on last year’s significant improvement in the sales of our international brands,” said Paul-François Vranken, Chairman and Chief Executive Officer. “The first-quarter, which is traditionally a fairly calm period for the champagne business, was in line with expectations.”

– The Champagne business, which accounts for around 93% of consolidated revenue, was stable for the quarter, with revenue just 0.3% higher than the prior-year period. Traditionally, the first quarter contributes less than 15% of annual revenue. The seasonal nature of the business is particularly noticeable in export sales and in high value-added segments, such as the premium cuvees, which means that quarterly performance gives little indication of full-year trends.

Revenue from the other businesses, which account for less than 7% of the consolidated total, declined by €400,000 due to the planned reduction in the industrial services business.

– Export sales of champagne rose by 34.2% during the quarter, led by Europe and Japan, even though the first months of the year are not significant in terms of revenue.
– In light of the revenue stream’s relative lack of exposure to non-euro currencies (less than 7% over the full-year), the higher euro reduced first-quarter revenue by only €95,000, or 0.2%.

HIGHLIGHTS OF THE QUARTER
Our strong positions in Europe led us, on January 1, 2008, to review our marketing organization and to create two distinct Prestige networks in the region, one for Vranken and the other for Pommery. The coexistence of these two networks will enable us to distribute our brands more widely and to expand each network’s customer base.

OUTLOOK
Based on first-quarter revenue and the agreements signed for the full year, the Group remains confident and intends to pursue its strategic focus on growth and higher margins in 2008.

1. ABOUT VRANKEN-POMMERY MONOPOLE
   Vranken-Pommery Monopole is one of the world’s leading Champagne groups. Its balanced portfolio of brands spans the entire market, with Cuvée Louise, Pop and Pommery, Vranken Demoiselle and Diamant, Charles Lafitte and Heidsieck & Co Monopole champagnes. It is also present in premium port wines, with Rozès and São Pedro, and is positioned as a prime distributor of rosé wines, with Vins des Sables (Domaines Listel) and Vins de Provence (Château La Gordonne), which it markets worldwide.
   Vranken-Pommery Monopole had 2007 revenue of €286.8 million. Taking into account the distribution of Listel products, business volume, net of marketing agreements, amounted to more than €350 million worth of value-added products.
   The Vranken-Pommery Monopole share is traded on the NYSE Euronext Paris stock exchange, Compartment B (VRAP; ISIN: FR0000062796). [↩]