Constellation Brands Reports Q1 Fiscal 2008 Results; Company Reaffirms Full-Year Guidance

$500 million utilized for share repurchases

SVEDKA Vodka acquisition finalized

U.K. wholesale business joint venture formed





FAIRPORT, N.Y., June 28 /PRNewswire-FirstCall/ -- Constellation Brands, Inc. (NYSE: STZ, ASX: CBR), a leading international producer and marketer of beverage alcohol, today reported diluted earnings per share ("EPS") on a reported basis of $0.13 for the quarter ended May 31, 2007 ("first quarter 2008"), compared with $0.36 for the prior year first quarter. On a comparable basis, first quarter 2008 diluted EPS totaled $0.21 versus $0.31 for the prior year.

"As we anticipated, our first quarter performance was impacted by our previously announced initiative to reduce distributor wine inventories in the U.S. as well as lower results from our U.K. business," stated Richard Sands, Constellation Brands chairman and chief executive officer. "We achieved a number of important strategic objectives during the quarter, including the acquisition of SVEDKA Vodka as a platform from which we can grow our premium spirits portfolio, the formation of a joint venture with Punch Taverns for the Matthew Clark wholesale business that will help strengthen our on-premise route to market for our branded portfolio in the U.K. and our utilization of $500 million for share repurchases."

                   First Quarter 2008 Net Sales Highlights*
                                (in millions)

                            Reported                          Organic
                     ---------------------         ---------------------------
                                       Constant                     Constant
                     Net               Currency     Net             Currency
                    Sales    Change    Currency    Sales   Change    Change
    Consolidated    $901      -22%        -25%    $756       2%       -2%
    Branded Wine    $620       20%         16%    $494      -5%       -8%
    Imported Beers     -     -100%       -100%
    Spirits          $97       16%         16%     $85       2%        2%
    Wholesale/other $184      -25%        -32%    $177      26%       15%

                   First Quarter 2008 Financial Highlights*
                     (in millions, except per share data)

                                Reported      Change    Comparable   Change
    Operating Income             $68           -52%       $82          -50%
    Equity in earnings of
      equity method investees**  $76            NM         NM          $76
    Earnings before interest
      and taxes (EBIT)             -             -       $158           -4%
    Operating margin             7.6%       -480 bps     9.1%       -520 bps
    Net Income                   $30           -65%       $49          -35%
    Diluted EPS                $0.13           -64%     $0.21          -32%

    *  Definitions of reported, comparable, organic and constant currency, as
       well as reconciliations of non-GAAP financial measures, are contained
       elsewhere in this news release.
    ** Hereafter referred to as "equity earnings."
    NM = Not meaningful.

    Net Sales Commentary

The reported consolidated net sales decrease of 22 percent primarily reflects the benefits of the Vincor and SVEDKA Vodka acquisitions, more than offset by the impact of reporting the Crown Imports and Matthew Clark wholesale business joint ventures under the equity method. Organic net sales decreased two percent on a constant currency basis.

Branded wine net sales growth reflects the addition of Vincor, partially offset by an eight percent decrease in branded wine organic net sales on a constant currency basis. For North America, branded wine organic net sales decreased 13 percent, primarily due to Constellation's initiative to reduce distributor inventory levels. This effort is progressing and the company expects to complete this initiative by the end of the second quarter of fiscal 2008.

"In North America, the wine market remains healthy," explained Sands. "Consumer demand is strong and they continue to trade up to premium and luxury wines, with Woodbridge by Robert Mondavi, Toasted Head, Blackstone, Estancia and Simi as examples of our brands that have been benefiting from this trend."

Organic net sales for branded wine for Europe increased 11 percent on a constant currency basis, primarily due to increased sales of popular priced wine in mainland Europe and increased sales in the U.K. The branded wine market in the U.K. reflects ongoing competitive challenges as large retailers continue to benefit from the Australian wine oversupply, which has resulted in pricing pressure.

Total spirits net sales increased 16 percent for the quarter, primarily due to the acquisition of SVEDKA Vodka during the quarter, while organic net sales were up two percent.

"SVEDKA continued its rapid growth rate in the first quarter and has terrific consumer momentum," said Sands. "We're delighted with its progress. We're also pleased with the continued U.S. consumer demand for premium spirits. As we continue to emphasize the growth of our premium spirits portfolio, with brands such as the Effen vodka line, Cocktails by Jenn, Ridgemont Reserve 1792 bourbon and the 99 Schnapps family, we see additional opportunities to expand our on-premise and off-premise business in the U.S., in addition to opportunities in other important markets, including Canada and Australia."

Operating Income, Net Income, Diluted EPS Commentary

The decrease in operating income and the increase in equity earnings for first quarter 2008 were primarily due to the impact of reporting $73.4 million of equity earnings from the Crown Imports joint venture under the equity method. "This joint venture provides us with the ability to execute nationwide marketing efforts, which is very beneficial as we look to maximize the long-term growth potential for Corona and the other brands in the number one imported beer portfolio in the U.S.," stated Sands.

Wines segment operating income decreased $10 million versus the prior year. This was primarily due to lower net sales associated with efforts to reduce distributor inventories in the U.S., the impact of the U.K. business performance, and higher stock compensation expense, partially offset by the contribution from Vincor.

Spirits segment operating income decreased $1.9 million primarily due to increased material costs.

Net income and diluted EPS were also impacted by interest expense, which increased 64 percent to $79.7 million for first quarter 2008, primarily due to the financing of the Vincor and SVEDKA acquisitions and $500 million of share repurchases.

Summary

"The first quarter was a very dynamic one for Constellation Brands as we initiated a U.S. wine inventory reduction program with our distributors, acquired SVEDKA, formed a joint venture with respect to our U.K. wholesale business, utilized $500 million for share repurchases and implemented measures to regain momentum in the U.K. market," said Sands. "We continue to be encouraged by ongoing consumer trade-up activity that we see in the U.S., Canada and the U.K. In addition, we are optimistic about the Australian wine supply moving more into balance with demand, pleased with the progress the Crown Imports beer joint venture is making in the marketplace, and enthusiastic about future business expansion opportunities for Constellation Brands throughout Europe. We are confident about Constellation's ability to maximize the benefits from opportunities it is harvesting, and to create increased shareholder value over the long-term."

Outlook

The table below sets forth management's current diluted earnings per share expectations for fiscal year 2008 compared to fiscal year 2007 actual results, both on a reported basis and a comparable basis.

                    Constellation Brands Fiscal Year 2008
                      Diluted Earnings Per Share Outlook

                          Reported Basis              Comparable Basis

                        FY08            FY07        FY08           FY07
                      Estimate         Actual     Estimate        Actual
    Fiscal Year
    Ending Feb. 29
    or Feb. 28      $1.16-$1.26        $1.38     $1.30-$1.40       $1.68

    Full-year fiscal 2008 guidance includes the following current assumptions:

    -- Net sales: low single-digit growth in organic net sales and low single-
       digit incremental benefit from the acquisitions of Vincor International
       Inc. and the SVEDKA Vodka brand and related business.  As a result of
       these increases, and the impact of reporting the Crown Imports joint
       venture and the joint venture for the Matthew Clark wholesale business
       under the equity method, reported net sales are expected to decrease 30
       to 32 percent from net sales for fiscal year 2007.
    -- Interest expense: approximately $330 - $340 million
    -- Stock compensation expense: approximately $30 million
    -- Tax rate: approximately 40 percent on a reported basis, which includes
       a provision of approximately two percentage points related to the loss
       on disposal in connection with the company's contribution of its U.K.
       wholesale business to the Matthew Clark joint venture and the
       repatriation of proceeds associated with this transaction, or
       approximately 38 percent on a comparable basis
    -- Weighted average diluted shares outstanding: approximately 225 million
    -- Free cash flow: $160 - $180 million

    Conference Call

A conference call to discuss first quarter 2008 results and outlook will be hosted by Chairman and Chief Executive Officer Richard Sands, President and Chief Operating Officer Rob Sands and Executive Vice President and Chief Financial Officer Bob Ryder on Thursday, June 28, 2007 at 10:00 a.m. (eastern). The conference call can be accessed by dialing +973-935-8505 beginning 10 minutes prior to the start of the call. A live listen-only webcast of the conference call, together with a copy of this news release (including the attachments) and other financial information that may be discussed in the call will be available on the Internet at Constellation's Web site: www.cbrands.com under "Investors," prior to the call.

Explanations

Reported basis ("reported") operating income, equity in earnings of equity method investees, net income and diluted earnings per share are as reported under generally accepted accounting principles. Operating income, equity in earnings of equity method investees, net income and diluted earnings per share on a comparable basis ("comparable"), exclude acquisition-related integration costs, restructuring and related charges and unusual items. The company's measure of segment profitability excludes acquisition-related integration costs, restructuring and related charges and unusual items, which is consistent with the measure used by management to evaluate results.

The company discusses additional non-GAAP measures in this news release, including constant currency net sales, organic net sales, comparable basis EBIT and free cash flow.

Tables reconciling non-GAAP measures, together with definitions of these measures and the reasons management uses these measures, are included in this news release.

About Constellation Brands

Constellation Brands, Inc. is a leading international producer and marketer of beverage alcohol in the wine, spirits and imported beer categories, with significant market presence in the U.S., Canada, U.K., Australia and New Zealand. Based in Fairport, N.Y., the company has more than 250 brands in its portfolio, sales in approximately 150 countries and operates approximately 60 wineries, distilleries and distribution facilities. It is the largest wine producer in the world; the largest wine company in the U.S. based upon sales dollar value, the largest wine company in the U.K., Australia and Canada; the second largest wine company in New Zealand; the largest beer importer and marketer in the U.S. through its Crown Imports joint venture with Mexico's Grupo Modelo; and the third largest spirits company in the U.S. Constellation Brands is an S&P 500 Index and Fortune 500(R) company. Major brands in the company's portfolio include Corona Extra, Black Velvet Canadian Whisky, the SVEDKA vodka line, Robert Mondavi wines, Ravenswood, Blackstone, Hardys, Banrock Station, Nobilo, Kim Crawford, Inniskillin, Jackson-Triggs and Arbor Mist. To learn more about Constellation Brands and its product portfolio visit the company's Web site at www.cbrands.com.

Forward-Looking Statements

The statements made under the heading Outlook, as well as all other statements set forth in this news release which are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by the forward-looking statements.

During the current quarter, Constellation may reiterate the estimates set forth above under the heading Outlook and elsewhere in this news release (collectively, the "Projections"). Prior to the start of the company's quiet period, which will begin at the close of business on August 17, 2007, the public can continue to rely on the Projections as still being Constellation's current expectations on the matters covered, unless Constellation publishes a notice stating otherwise.

Commencing at the close of business on August 17, 2007, Constellation will observe a "quiet period" during which the Projections should not be considered to constitute the company's expectations. During the quiet period, the Projections should be considered to be historical, speaking as of prior to the quiet period only and not subject to update by the company.

The company's forward-looking statements are based on management's current expectations and, unless otherwise noted, do not take into account the impact of any future acquisition, merger or any other business combination, divestiture, restructuring or other strategic business realignments, or financing that may be completed after the date of this release. Any projections of future results of operations, and in particular, (i) the company's estimated diluted earnings per share on a reported basis for fiscal 2008, and (ii) the company's estimated diluted earnings per share on a comparable basis for fiscal 2008, should not be construed in any manner as a guarantee that such results will in fact occur. In addition to the risks and uncertainties of ordinary business operations, the forward-looking statements of the company contained in this news release are also subject to the following risks and uncertainties: factors relating to Constellation's ability to integrate Vincor's business, and the SVEDKA Vodka business, successfully and realize expected synergies associated with the Vincor acquisition; the continued strength of Vincor's relationships, and relationships of the SVEDKA Vodka business, with their respective employees, suppliers and customers; the accuracy of the bases for forecasts relating to Vincor's business and the SVEDKA Vodka brand and related business; final management determinations and independent appraisals may vary materially from current management estimates of the fair value of assets acquired and liabilities assumed in the SVEDKA Vodka business acquisition; the company's restructuring and related charges, acquisition-related integration cost and purchase accounting adjustments associated with the Vincor integration plan (announced in July 2006) and the company's restructuring and related charges associated with the Fiscal 2007 Wine Plan (announced in August 2006) and its global wine restructuring plan announced in February 2006 may vary materially from management's current estimates of these charges, costs and adjustments due to variations in one or more of anticipated headcount reductions, contract terminations, or costs of implementation of these plans; the company achieving all of the expected cost savings from its Fiscal 2007 Wine Plan, from its Vincor integration plan and from its global wine restructuring plan due to, with respect to any or all of these plans, lower than anticipated reductions in headcount or other expenses, or a delay or greater than anticipated costs in their implementation; the company may realize lower than expected proceeds from sale of assets identified for sale under the Fiscal 2007 Wine Plan and consequently incurs a greater than expected loss on the sale of such assets; the impact upon net sales and diluted earnings per share resulting from the decision to reduce distributor wine inventory levels in the U.S. varying from current expectations due to the actual levels of distributor wine inventory reductions; the company achieving certain sales projections and meeting certain cost targets; wholesalers and retailers may give higher priority to products of the company's competitors; raw material supply, production or shipment difficulties could adversely affect the company's ability to supply its customers; increased competitive activities in the form of pricing, advertising and promotions could adversely impact consumer demand for the company's products and/or result in higher than expected selling, general and administrative expenses; a general decline in alcohol consumption; increases in excise and other taxes on beverage alcohol products; governmental bodies may increase tax rates; proportionately, the company's taxable income may be higher than expected in jurisdictions with higher tax rates; and changes in interest rates and foreign currency exchange rates.

The company acquired Vincor International Inc. on June 5, 2006 and the SVEDKA Vodka brand and related business on March 19, 2007. In addition, on Jan. 2, 2007, the company formed the Crown Imports joint venture with Grupo Modelo S.A. de C.V. for the purpose of importing and marketing Modelo's Mexican beer portfolio into the United States and Guam, and on April 17, 2007, the company formed the Matthew Clark joint venture with Punch Taverns plc to own and operate the U.K. wholesale business formerly owned entirely by the company. Risks and uncertainties associated with these joint ventures include, among others, each joint venture's ability to operate the business successfully, each joint venture's ability to develop appropriate standards, controls, procedures and policies for the growth and management of such joint venture and the continued strength of each joint venture's relationships with, including without limitation, its employees, suppliers and customers. Additional risks and uncertainties associated with the Matthew Clark joint venture include factors relating to higher than expected formation and/or start-up costs for the joint venture, and the accuracy of the basis for the forecasts relating to the joint venture's business, including any capital investment in distribution infrastructure or the realization of any distribution efficiencies.

For additional information about risks and uncertainties that could adversely affect Constellation's forward-looking statements, please refer to Constellation's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended Feb. 28, 2007, which contains a discussion of additional factors that may affect Constellation's business. The factors discussed in these reports could cause actual future performance to differ from current expectations.


                 Constellation Brands, Inc. and Subsidiaries
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                (in millions)

                                                   May 31,        February 28,
                                                     2007            2007
     Assets

       Current Assets:
         Cash and cash investments                   $33.5             $33.5
         Accounts receivable, net                    763.9             881.0
         Inventories                               1,955.3           1,948.1
         Prepaid expenses and other                  156.6             160.7

         Total current assets                      2,909.3           3,023.3

       Property, plant and equipment, net          1,744.2           1,750.2
       Goodwill                                    3,348.9           3,083.9
       Intangible assets, net                      1,218.9           1,135.4
       Other assets, net                             604.9             445.4

         Total assets                             $9,826.2          $9,438.2

     Liabilities and Stockholders' Equity

       Current Liabilities:
         Notes payable to banks                     $242.3            $153.3
         Current maturities of long-term debt        362.8             317.3
         Accounts payable                            270.6             376.1
         Accrued excise taxes                         64.9              73.7
         Other accrued expenses and
          liabilities                                566.9             670.7

         Total current liabilities                 1,507.5           1,591.1

       Long-term debt, less current
        maturities                                 4,381.8           3,714.9
       Deferred income taxes                         490.8             474.1
       Other liabilities                             317.8             240.6

         Total liabilities                         6,697.9           6,020.7

         Total stockholders' equity                3,128.3           3,417.5

         Total liabilities and stockholders'
          equity                                  $9,826.2          $9,438.2


                 Constellation Brands, Inc. and Subsidiaries
                      CONSOLIDATED STATEMENTS OF INCOME
                     (in millions, except per share data)

                                                      Three Months Ended
                                                    May 31,          May 31,
                                                     2007              2006

     Sales                                        $1,175.4          $1,430.2
     Excise taxes                                   (274.2)           (274.3)
       Net sales                                     901.2           1,155.9

     Cost of product sold                           (633.0)           (837.3)
       Gross profit                                  268.2             318.6

     Selling, general and administrative
      expenses                                      (197.6)           (172.6)
     Restructuring and related charges                (0.4)             (2.3)
     Acquisition-related integration
      costs                                           (2.0)             (0.7)
       Operating income                               68.2             143.0

     Equity in earnings of equity method
      investees                                       75.8               0.1
     Gain on change in fair value of
      derivative instrument                              -              52.5
     Interest expense, net                           (79.7)            (48.7)
       Income before income taxes                     64.3             146.9

     Provision for income taxes                      (34.5)            (61.4)
       Net income                                     29.8              85.5

     Dividends on preferred stock                        -              (2.5)
       Income available to common
        stockholders                                 $29.8             $83.0


     Earnings Per Common Share:
       Basic - Class A Common Stock                  $0.13             $0.38
       Basic - Class B Common Stock                  $0.12             $0.34

       Diluted - Class A Common Stock                $0.13             $0.36
       Diluted - Class B Common Stock                $0.12             $0.33

     Weighted Average Common Shares
      Outstanding:
       Basic - Class A Common Stock                205.636           199.571
       Basic - Class B Common Stock                 23.824            23.853

       Diluted - Class A Common Stock              233.439           240.100
       Diluted - Class B Common Stock               23.824            23.853


                 Constellation Brands, Inc. and Subsidiaries
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (in millions)

                                                         Three Months Ended
                                                      May 31,          May 31,
                                                       2007             2006
     Cash Flows From Operating Activities
       Net income                                     $29.8             $85.5
       Adjustments to reconcile net income
        to net cash (used in) provided by
        operating activities:
         Depreciation of property, plant and
          equipment                                    36.1              26.7
         Stock-based compensation expense               9.0               3.6
         Loss on disposal of business                   6.3              17.3
         Deferred tax provision                         3.6              15.6
         Amortization of intangible and other
          assets                                        2.6               2.0
         Loss on disposal or impairment of
          long-lived assets, net                        0.8               0.3
         Equity in earnings of equity method
          investees, net
          of distributed
          earnings                                    (46.6)             (0.1)
         Gain on change in fair value of
          derivative instrument                           -             (52.5)
         Change in operating assets and
          liabilities, net of effects
          from purchases and sales of
          businesses:
           Accounts receivable, net                   (38.9)            (66.4)
           Inventories                                (27.6)            (31.3)
           Prepaid expenses and other current
            assets                                     (4.7)            (10.9)
           Accounts payable                           (23.1)             45.4
           Accrued excise taxes                         1.9              (9.7)
           Other accrued expenses and
            liabilities                               (17.6)            (12.2)
     Other, net                                       (17.7)             (7.7)
           Total adjustments                         (115.9)            (79.9)
           Net cash (used in) provided by
            operating activities                      (86.1)              5.6

     Cash Flows From Investing Activities
       Purchase of business, net of cash
        acquired                                     (385.5)                -
       Purchases of property, plant and
        equipment                                     (17.7)            (45.1)
       Payment of accrued earn-out amount              (2.9)             (1.1)
       Proceeds from formation of joint
        venture                                       185.6                 -
       Proceeds from sales of businesses                3.0              28.0
       Proceeds from sales of assets                    1.8               0.7
       Other investing activities                         -              (2.1)
         Net cash used in investing
          activities                                 (215.7)            (19.6)

     Cash Flows From Financing Activities
       Proceeds from issuance of long-term
        debt                                          716.1                 -
       Net proceeds from notes payable                 89.9              83.9
       Exercise of employee stock options               7.0               8.6
       Excess tax benefits from stock-based
        payment awards                                  5.0               2.8
       Purchases of treasury stock                   (500.0)                -
       Principal payments of long-term debt            (9.0)            (52.6)
       Payment of financing costs of long-
        term debt                                      (5.3)                -
       Payment of preferred stock dividends               -              (2.5)
         Net cash provided by financing
          activities                                  303.7              40.2

     Effect of exchange rate changes on
      cash and cash investments                        (1.9)              0.4

     Net increase in cash and cash
      equivalents                                     -                  26.6
     Cash and cash investments, beginning
      of period                                        33.5              10.9
     Cash and cash investments, end of
      period                                          $33.5             $37.5

                 Constellation Brands, Inc. and Subsidiaries
                             SEGMENT INFORMATION
                                (in millions)

                                       Three Months Ended
                                      May 31,        May 31,         Percent
                                       2007           2006           Change

    Segment Net Sales and
     Operating Income
      Constellation Wines
        Branded wine net sales        $619.9          $517.2          20%
        Wholesale and other net sales  184.4           247.3         (25%)
        Segment net sales             $804.3          $764.5           5%
        Operating income               $86.2           $96.2         (10%)
        % Net sales                     10.7%           12.6%
        Equity in earnings of equity
         method investees               $2.4            $0.1          NM

      Constellation Beers
        Segment net sales                 $-          $308.1        (100%)
        Operating income                  $-            65.1        (100%)
        % Net sales                      N/A            21.1%

      Constellation Spirits
        Segment net sales              $96.9           $83.3          16%
        Operating income               $15.8           $17.7         (11%)
        % Net sales                     16.3%           21.2%

      Crown Imports
        Segment net sales             $658.1              $-         N/A
        Operating income              $146.3              $-         N/A
        % Net sales                     22.2%            N/A

      Consolidation and Eliminations
        Segment net sales            $(658.1)             $-         N/A
        Operating income             $(146.3)             $-         N/A
        Equity in earnings of
         Crown Imports                 $73.4              $-         N/A

      Corporate Operations and Other
        Consolidated net sales        $901.2        $1,155.9         (22%)
        Operating income              $(19.7)         $(14.2)         39%
        % Net sales                      2.2%            1.2%


                 Constellation Brands, Inc. and Subsidiaries
                            GEOGRAPHIC INFORMATION
                                (in millions)

                                                                   Constant
                   Three Months Ended                              Currency
                  May 31,      May 31,      Percent    Currency     Percent
                   2007         2006         Change      Impact     Change(3)

    Geographic Net
     Sales (1)(2)
    North America  $506.2       $745.2         (32%)          -        (32%)

    Branded wine   $393.4       $347.7          13%           -         13%
    Imported beers    $ -       $308.1        (100%)          -       (100%)
    Spirits         $96.9        $83.3          16%           -         16%
    Wholesale and
     other          $15.9         $6.1         161%           -        161%

    Europe         $302.2       $329.4          (8%)         8%        (16%)
    Branded wine   $143.3        $96.3          49%         11%         38%
    Wholesale and
     other         $158.9       $233.1         (32%)         6%        (38%)

    Australia/
     New Zealand    $92.8        $81.3          14%          9%          5%
    Branded wine    $83.2        $73.2          14%          9%          4%
    Wholesale and
     other           $9.6         $8.1          19%         11%          7%


                                                                     Organic
                     Three Months Ended                              Constant
                                                                     Currency
                     May 31,  May 31, Percent  Acquisition  Currency  Percent
                     2007      2006   Change    Impact(4)    Impact  Change(3)

    Branded Wine
     Geographic Net
     Sales (1)(2)
    North America   $393.4   $347.7     13%       26%          -      (13%)
    Europe           143.3     96.3     49%       27%         11%      11%
    Australia/
     New Zealand      83.2     73.2     14%       15%          9%     (11%)
      Consolidated
       branded wine
       net sales    $619.9   $517.2     20%       24%          3%      (8%)


    (1) Refer to discussion under "Reconciliation of Reported, Organic and
        Constant Currency Net Sales" on following page for definition of
        constant currency net sales and organic constant currency net sales
        and reasons for use.

    (2) Net sales are attributed to countries based on the location of the
        selling company.

    (3) May not sum due to rounding as each item is computed independently.

    (4) Acquisition impact includes net sales of branded wine acquired in the
        acquisition of Vincor International Inc. ("Vincor") for the period
        March 1, 2007, through May 31, 2007.


                 Constellation Brands, Inc. and Subsidiaries
     RECONCILIATION OF REPORTED, ORGANIC AND CONSTANT CURRENCY NET SALES
                                (in millions)

    As the Company acquired Vincor on June 5, 2006, formed its imported beer
    joint venture on January 2, 2007, acquired Svedka on March 19, 2007, and
    formed its U.K. wholesale joint venture on April 17, 2007, organic net
    sales for the respective periods are defined by the Company as reported
    net sales less net sales of Vincor products, net sales of imported beers,
    net sales of Svedka products, or net sales of U.K. wholesale, as
    appropriate.  Organic net sales and percentage increase (decrease) in
    constant currency net sales (which excludes the impact of year over year
    currency exchange rate fluctuations) are provided because management uses
    this information in monitoring and evaluating the underlying business
    trends of the continuing operations of the company.  In addition, the
    company believes this information provides investors better insight on
    underlying business trends and results in order to evaluate year over year
    financial performance.

                                                                     Constant
                              Three Months Ended                     Currency
                               May 31,   May 31,   Percent  Currency Percent
                                2007      2006     Change   Impact   Change(1)
    Consolidated Net Sales
       Branded wine            $619.9   $517.2      20%        3%        16%
       Wholesale and other      184.4    247.3     (25%)       6%       (32%)
       Imported beers               -    308.1    (100%)       -       (100%)
       Spirits                   96.9     83.3      16%        -         16%
       Consolidated reported
        net sales               901.2  1,155.9     (22%)       3%       (25%)
       Less:  Vincor (2)       (133.7)       -
       Less:  Imported
        beers (3)                   -   (308.1)
       Less:  Svedka (4)        (11.6)       -
       Less:  U.K.
        wholesale (5)               -   (106.4)
       Consolidated organic
        net sales              $755.9   $741.4       2%        4%        (2%)

    Branded Wine Net Sales
       Branded wine reported
        net sales              $619.9   $517.2      20%        3%        16%
       Less:  Vincor (2)       (126.3)       -
       Branded wine organic
        net sales              $493.6   $517.2      (5%)       3%        (8%)

    Spirits Net Sales
       Spirits reported
         net sales               $96.9   $83.3      16%        -         16%
       Less:  Svedka (4)         (11.6)      -
       Spirits organic
        net sales               $85.3    $83.3       2%        -          2%

    Wholesale and Other Net Sales
       Wholesale and other
        reported net sales     $184.4   $247.3     (25%)       6%       (32%)
       Less:  Vincor (2)         (7.4)       -
       Less:  U.K.
        wholesale (5)               -   (106.4)
       Wholesale and other
        organic net sales      $177.0   $140.9      26%       11%        15%

    (1) May not sum due to rounding as each item is computed independently.

    (2) For the period March 1, 2007, through May 31, 2007, included in the
        three months ended May 31, 2007.

    (3) For the period March 1, 2006, through May 31, 2006, included in the
        three months ended May 31, 2006.

    (4) For the period March 19, 2007, through May 31, 2007, included in the
        three months ended May 31, 2007.

    (5) For the period April 17, 2006, through May 31, 2006, included in the
        three months ended May 31, 2006.


                 Constellation Brands, Inc. and Subsidiaries
            RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
                     (in millions, except per share data)

    The company reports its financial results in accordance with generally
    accepted accounting principles in the U.S. ("GAAP").  However, non-GAAP
    financial measures, as defined in the reconciliations below, are provided
    because management uses this information in evaluating the results of the
    continuing operations of the company and/or internal goal setting.  In
    addition, the company believes this information provides investors better
    insight on underlying business trends and results in order to evaluate
    year over year financial performance.  See the tables below for
    supplemental financial data and corresponding reconciliations of these
    non-GAAP financial measures to GAAP financial measures for the three
    months ended May 31, 2007, and May 31, 2006.  Non-GAAP financial measures
    should be viewed in addition to, and not as an alternative for, the
    company's reported results prepared in accordance with GAAP.  Please refer
    to the company's Web site at http://www.cbrands.com/CBI/investors.htm for
    more detailed description and further discussion of these non-GAAP
    financial measures.

                                       Three Months Ended May 31, 2007

                           Reported             Strategic           Comparable
                            Basis   Inventory    Business             Basis
                           (GAAP)    Step-up   Realignment(1) Other (Non-GAAP)
     Net Sales             $901.2                                    $901.2
       Cost of product
        sold               (633.0)     2.9         2.2               (627.9)
     Gross Profit           268.2      2.9         2.2         -      273.3
       Selling, general and
        administrative
        expenses           (197.6)                 6.6               (191.0)
       Restructuring and
        related charges      (0.4)                 0.4                    -
       Acquisition-related
        integration costs    (2.0)                 2.0                    -
     Operating Income        68.2      2.9        11.2         -       82.3
       Equity in earnings
        of equity method
        investees            75.8      0.2                             76.0
     EBIT                                                             158.3
       Gain on change in
        fair value of
        derivative
        instrument              -                                         -
       Interest expense,
        net                 (79.7)                                    (79.7)
     Income Before Income
      Taxes                  64.3      3.1        11.2         -       78.6
       Provision for income
        taxes               (34.5)    (1.1)        5.5         -      (30.1)
     Net Income             $29.8     $2.0       $16.7        $-      $48.5
     Diluted Earnings Per
      Common Share(3)       $0.13    $0.01       $0.07        $-      $0.21
     Weighted Average Common
      Shares
       Outstanding -
       Diluted            233.439  233.439     233.439   233.439    233.439

     Gross Margin            29.8%                                     30.3%
     Operating Margin         7.6%                                      9.1%
     Effective Tax Rate      53.7%                                     38.3%


                                       Three Months Ended May 31, 2006

                                                                    Comparable
                           Reported             Strategic              Basis
                            Basis   Inventory    Business              (Non-
                           (GAAP)    Step-up   Realignment(1) Other(2)  GAAP)
    Net Sales            $1,155.9                                   $1,155.9
      Cost of product
       sold                (837.3)     0.6         1.1         1.5    (834.1)
    Gross Profit            318.6      0.6         1.1         1.5     321.8
      Selling, general and
       administrative
       expenses            (172.6)                15.6                (157.0)
      Restructuring and
       related charges       (2.3)                 2.3                     -
      Acquisition-related
       integration costs     (0.7)                 0.7                     -
    Operating Income        143.0      0.6        19.7         1.5     164.8
      Equity in earnings of
       equity method
       investees              0.1      0.5                               0.6
    EBIT                                                               165.4
      Gain on change in fair
       value of derivative
       instrument            52.5                            (52.5)        -
      Interest expense, net (48.7)                                     (48.7)
    Income Before Income
     Taxes                  146.9      1.1        19.7       (51.0)    116.7
      Provision for income
       taxes                (61.4)    (0.3)        1.2        18.5     (42.0)
    Net Income              $85.5     $0.8       $20.9      $(32.5)    $74.7
    Diluted Earnings Per
     Common Share(3)        $0.36       $-       $0.09      $(0.14)    $0.31
    Weighted Average
     Common Shares
      Outstanding -
      Diluted             240.100  240.100     240.100     240.100   240.100

     Gross Margin            27.6%                                      27.8%
     Operating Margin        12.4%                                      14.3%
     Effective Tax Rate      41.8%                                      36.0%


                                          Percent Change -    Percent Change -
                                            Reported            Comparable
                                              Basis               Basis
                                             (GAAP)             (Non-GAAP)

     Net Sales                                (22%)               (22%)
       Cost of product sold                   (24%)               (25%)
     Gross Profit                             (16%)               (15%)
       Selling, general and administrative
        expenses                               14%                 22%
       Restructuring and related charges      (83%)                N/A
       Acquisition-related integration
        costs                                 186%                 N/A
     Operating Income                         (52%)               (50%)
       Equity in earnings of equity method
        investees                               NM                  NM
     EBIT                                      N/A                 (4%)
       Gain on change in fair value of
        derivative instrument                (100%)                N/A
       Interest expense, net                   64%                 64%
     Income Before Income Taxes               (56%)               (33%)
       Provision for income taxes             (44%)               (28%)
     Net Income                               (65%)               (35%)
     Diluted Earnings Per Common Share(3)     (64%)               (32%)


    (1) For the three months ended May 31, 2007, strategic business
        realignment items include the loss on disposal in connection with the
        company's contribution of its U.K. wholesale business of $13.3
        million, including $7.2 million additional tax expense, and costs
        recognized by the company primarily in connection with (i)  the
        restructuring and integration of the operations of Vincor
        International Inc. (the "Vincor Plan") of $1.3 million, net of a tax
        benefit of $0.6 million, (ii)  its plan to invest in new distribution
        and bottling facilities in the U.K. and to streamline certain
        Australian wine operations (collectively, the "Fiscal 2007 Wine Plan")
        of $1.1 million, net of a tax benefit of $0.5 million,  and (iii)  its
        worldwide wine reorganization, including its program to consolidate
        certain west coast production processes in the U.S. (collectively, the
        "Fiscal 2006 Plan") of $0.9 million, net of a tax benefit of $0.6
        million.  For the three months ended May 31, 2006, strategic business
        realignment items include costs recognized by the company in
        connection with (i)  the Fiscal 2006 Plan of $3.2 million, net of a
        tax benefit of $1.7 million, (ii)  the "Robert Mondavi Plan" of $0.4
        million, net of a tax benefit of $0.3 million, and (iii) the loss on
        the sale of the company's branded bottled water business of $17.3
        million, including $3.2 million additional tax expense.

    (2) For the three months ended May 31, 2006, other includes $1.0 million,
        net of a tax benefit of $0.5 million, of adverse grape costs
        recognized in connection with the acquisition of The Robert Mondavi
        Corporation, and a gain of $33.5 million, net of tax expense of $19.0
        million, for the May 31, 2006, mark-to-market adjustment of a foreign
        currency forward contract entered into by the Company in connection
        with the acquisition of Vincor to fix the U.S. dollar cost of the
        acquisition and payment of certain outstanding indebtedness.

    (3) May not sum due to rounding as each item is computed independently.


                 Constellation Brands, Inc. and Subsidiaries
      RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
           GUIDANCE - DILUTED EARNINGS PER SHARE AND FREE CASH FLOW
                     (in millions, except per share data)


                                                       Range for the Year
    Diluted Earnings Per Share Guidance             Ending February 29, 2008

    Forecasted diluted earnings per share
     - reported basis (GAAP)                           $1.16          $1.26
      Inventory step-up                                 0.03           0.03
      Strategic business realignment(1)                 0.11           0.11
    Forecasted diluted earnings per share
      - comparable basis (Non-GAAP)(2)                 $1.30          $1.40

                                                                Actual for the
                                                                  Year Ended
                                                             February 28, 2007

    Diluted earnings per share - reported basis (GAAP)              $1.38
      Mondavi adverse grape cost                                     0.01
      Inventory step-up                                              0.09
      Strategic business realignment(1)                              0.30
      Other(3)                                                      (0.10)
    Diluted earnings per share - comparable basis (Non-GAAP)(2)     $1.68

    (1) Includes $0.05, $0.03, $0.02 and $0.01 diluted earnings per share for
        the year ending February 29, 2008, associated with the loss on
        disposal in connection with the company's contribution of its U.K.
        wholesale business to the Matthew Clark joint venture and the
        company's provision for income taxes in connection with the
        repatriation of proceeds associated with this transaction, the Fiscal
        2007 Wine Plan, the Vincor Plan and the Fiscal 2006 Plan,
        respectively. Includes $0.13, $0.07 and $0.03 diluted earnings per
        share for the year ended February 28, 2007, associated with the
        company's Fiscal 2007 Wine Plan, Vincor Plan and Fiscal 2006 Plan,
        respectively, and $0.07 diluted earnings per share associated with the
        loss on the sale of the company's branded bottled water business for
        the year ended February 28, 2007.(2)

    (2) May not sum due to rounding as each item is computed independently.

    (3) Includes ($0.15), $0.03 and $0.01 diluted earnings per share for the
        year ended February 28, 2007, associated with the gain on the mark-to-
        market adjustment of the foreign currency forward contract entered
        into by the company in connection with the acquisition of Vincor to
        fix the U.S. dollar cost of the acquisition and payment of certain
        outstanding indebtedness, the write-off of deferred financing fees in
        connection with the company's repayment of its prior senior credit
        facility, and foreign currency losses on foreign denominated
        intercompany loan balances associated with the acquisition of Vincor,
        respectively.(2)


    Free Cash Flow Guidance

    Free cash flow, as defined in the reconciliation below, is considered a
    liquidity measure and is considered to provide useful information to
    investors about the amount of cash generated, which can then be used,
    after required debt service and dividend payments, for other general
    corporate purposes. A limitation of free cash flow is that it does not
    represent the total increase or decrease in the cash balance for the
    period. Free cash flow should be considered in addition to, not as a
    substitute for, or superior to, cash flow from operating activities
    prepared in accordance with GAAP.

                                                      Range for the Year
                                                   Ending February 29, 2008

    Net cash provided by operating activities (GAAP)  $325.0         $345.0
      Purchases of property, plant and equipment      (165.0)        (165.0)
    Free cash flow (Non-GAAP)                         $160.0         $180.0

                                                               Actual for the
                                                                 Three Months
                                                                 Ended May 31,
                                                                     2007
    Net cash (used in) provided by operating activities (GAAP)      $(86.1)
      Purchases of property, plant and equipment                     (17.7)
    Free cash flow (Non-GAAP)                                      $(103.8)

SOURCE Constellation Brands, Inc.
CONTACT: media, Mike Martin, +1-585-218-3669, Angie Blackwell,
+1-585-218-3842; investors, Patty Yahn-Urlaub, +1-585-218-3838, Bob Czudak,
+1-585-218-3668, all for Constellation Brands, Inc./
/Web site: http://www.cbrands.com/
(STZ STZB)