Wine Industry Report

* Champagne revenue up 4.7%
* Continued improvement in the product mix

Vranken-Pommery Monopole¹, a major producer and distributor of Champagne, today released its interim review for the six months ended June 30, 2008.

Consolidated revenue amounted to €90.3 million in the first six months of 2008, an increase of 3.4% over the prior-year period.
“In the first half of 2008, we pursued our strategy of developing our brands,” said Paul-François Vranken, Chairman and Chief Executive Officer. “We are satisfied with our sales growth for the period, especially in export markets.”

Analysis by product
* Champagne revenue amounted to €81.1 million for the first six months of 2008, a 4.7% increase on the year-earlier period. The Group pursued its strategy of improving the product mix during the period, while the international brands enjoyed 6.1% growth compared with first-half 2007. Pommery reported sustained sales across the product range. Vranken also got off to a good start to the year, thanks to the positive impact of separating the Vranken and Pommery prestige networks. As well, sales of Heidsieck & Co Monopole, one of the Group international signature brand, remained firm over the period.

* The new Port wine range for hypermarkets and supermarkets, combined with recent agreements and strong expansion in Portugal, should help to improve the product mix and stabilize Port sales over the full year.

* In the distribution of Vins des Sables (Listel) and Vins de Provence (La Gordonne), the Group consolidated the positions acquired in early 2007 by repositioning the ranges.

Analysis by region
* Export sales of Champagne were up 15.6% at current exchange rates, or by 18.2% excluding the currency effect.
* Business was strong in Europe, particularly in Belgium, Germany and Switzerland, while sales growth was also good in Japan. Despite the decline in the dollar against the euro, sales also increased in the United States, primarily due to the fact that
Pommery distribution has been taken over by the American subsidiary.

OTHER FINANCIAL INFORMATION
Because of the highly seasonal nature of Champagne sales, it is impossible to identify a clear trend for full-year revenue and profitability based on performance in the first six months alone.
* The euro’s strength should have a limited impact on earnings, as sales outside the euro zone account for less than 7% of full-year revenue. In the first half, for example, the currency effect was a negative €0.8 million, or 0.9% of revenue for the period.
* The impact of higher interest rates on finance costs should be cushioned by hedging instruments.
* Net debt is expected to track the controlled rise in Champagne inventories over the period, increasing slightly but less than inflation.

HIGHLIGHTS OF THE PERIOD
During the first half, the Group successfully prepared to take over distribution of its products in Italy and created a subsidiary there.
On January 1, 2008, the marketing organization was revamped to create two distinct Prestige networks in France and the rest of Europe, one for Vranken and the other for Pommery. Their coexistence is making it possible to distribute the brands more widely and to expand each network’s customer base.

OUTLOOK
Champagne sales are highly seasonal, with the first half traditionally contributing around 30% of annual revenue. However, based on the good level of first-half business 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.

INVESTOR CALENDAR
First-half financial results: September 16, 2008
Third-quarter revenue: October 23, 2008

1. Vranken-Pommery Monopole is one of the world’s leading Champagne groups. Its balanced portfolio
   of brands spans the entire market, with Pommery Cuvée Louise, Vranken Demoiselle and Diamant,
   Pommery and Pop, 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). [↩]