Constellation Announces Common Stock And Mandatory Convertible Preferred Stock Offerings

FAIRPORT, N.Y., July 17 /PRNewswire-FirstCall/ -- Constellation Brands, Inc. (NYSE: STZ) announced today that intends to issue class A common stock and depositary shares in concurrent public offerings under the company's existing shelf registration statement. In connection with these offerings, Constellation plans to issue approximately 9.5 million class A common shares and $150 million mandatory convertible preferred shares, with an underwriters over-allotment option of 15% for the class A common offering and 14% for the depositary shares. The depositary shares will be convertible into a fixed number of the Company's class A common shares and will pay a fixed quarterly cash distribution.

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The net proceeds of these offerings will be used to repay borrowings under the bridge loans incurred to partially finance the acquisition of BRL Hardy and to repay a portion of term loans under the Company's senior credit facility.

Citigroup Global Markets Inc. and J.P. Morgan Securities Inc. will act as the joint book-running managers while UBS Securities LLC will act as joint lead manager for the proposed offerings.

This announcement does not constitute an offer to sell or a solicitation of an offer to buy shares of class A common stock or shares of mandatory convertible preferred stock. Shares of class A common stock or shares of mandatory convertible preferred stock will not be sold in any jurisdiction in which such an offer, solicitation, or sale would be unlawful.

About Constellation

Constellation Brands, Inc. is a leading international producer and marketer of beverage alcohol brands with a broad portfolio across the wine, spirits and imported beer categories. The Company is the largest multi-category supplier of beverage alcohol in the United States; a leading producer and exporter of wine from Australia and New Zealand; and both a major producer and independent drinks wholesaler in the United Kingdom. Well-known brands in Constellation's portfolio include: Corona Extra, Pacifico, St. Pauli Girl, Black Velvet, Fleischmann's, Mr. Boston, Estancia, Simi, Ravenswood, Blackstone, Banrock Station, Hardys, Nobilo, Alice White, Vendange, Almaden, Arbor Mist, Stowells of Chelsea and Blackthorn.

SOURCE  Constellation Brands, Inc.
    -0-                             07/17/2003
    /CONTACT:  Investor Relations - Mark Maring, +1-585-218-3668, Public
Relations - Ginny Clark, +1-585-218-3669, both of Constellation Brands, Inc./
    /Photo:  http://www.newscom.com/cgi-bin/prnh/20000918/NYM167LOGO
             AP Archive:  http://photoarchive.ap.org /
    /Web site:  http://www.cbrands.com /
    (STZ STZB)

CO:  Constellation Brands, Inc.
ST:  New York
IN:  HOU REA FOD
SU:  OFR

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8960 07/17/2003 16:47 EDT http://www.prnewswire.com