Constellation Brands Reports Q3 Fiscal 2008 Results

- Generates strong free cash flow through third quarter and increases free cash flow guidance for fiscal 2008

- Outlines synergies and integration costs for acquired wine business

- Realigns U.S. wine sales team, rationalizes U.S. wine portfolio

- Updates fiscal 2008 EPS

FAIRPORT, N.Y., Jan. 8 /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 $0.55 for the quarter ended Nov. 30, 2007 ("third quarter 2008"), compared with $0.45 for the prior year third quarter. On a comparable basis, third quarter 2008 diluted EPS totaled $0.55 versus $0.58 for the prior year.

(Logo: http://www.newscom.com/cgi-bin/prnh/20040119/STZLOGO )

"The company's third quarter performance was in line with our expectations, and we are especially pleased with the performances from our North American wine business and our spirits business," said Rob Sands, Constellation Brands president and chief executive officer. "We're also delighted with the addition of the Fortune Brands U.S. wine portfolio to Constellation's U.S. wine business and the benefits we expect from our expanded super-premium-plus offerings. Also, we are continuing our efforts in the U.K. to mitigate the impact of the lingering Australian wine surplus in the marketplace and to maximize profitability."



    Third Quarter 2008 Net Sales Highlights*
    (in millions)
                                Reported                   Organic
                          ________________________  _________________________
                                         Constant                   Constant
                           Net           Currency    Net            Currency
                          Sales   Change  Change    Sales  Change    Change
    Consolidated          $1,095    -27 %    -30 %  $1,078    11 %        6 %
    Branded Wine            $911     12 %      7 %    $911     9 %        4 %
    Imported Beers             -   -100 %   -100 %
    Spirits                 $117     31 %     31 %    $101    12 %       12 %
    Wholesale/other          $66    -77 %    -79 %     $66    33 %       24 %



    Third Quarter 2008 Profit Highlights*
    (in millions, except per share data)


                                      Reported     Change  Comparable  Change

    Operating income                      $198      -16 %     $200      -28 %
    Equity in earnings of equity
     method investees**                    $74      613 %      $75      513 %
    Earnings before interest and
     taxes (EBIT)                            -         -      $275       -5 %
    Operating margin                     18.1 %    +240 bps  18.3 %  -30 bps
    Net income                            $120       11 %     $121      -13 %
    Diluted EPS                          $0.55       22 %    $0.55       -5 %

    * 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."


    Net Sales Commentary

The reported consolidated net sales decrease of 27 percent primarily reflects the impact of reporting the Crown Imports and Matthew Clark wholesale business joint ventures under the equity method, partially offset by the benefits of favorable foreign currency, branded wine business growth and the SVEDKA Vodka acquisition. Organic net sales increased six percent on a constant currency basis.

Branded wine net sales increased four percent on an organic constant currency basis. For North America, branded wine net sales increased five percent on a constant currency basis, reflecting solid growth in the U.S.

"Our U.S. branded wine business turned in a solid third quarter performance, with wines such as Woodbridge, Robert Mondavi Private Selection, Blackstone, Estancia, Kim Crawford and Simi leading the way with very healthy sales growth," explained Sands. "Growth of these brands is indicative of the trade-up trends we've been seeing for the past several years, and we feel that the growth trajectory for our premium and luxury brands will continue due to consumer preferences for these wines."

Organic net sales for branded wine for Europe increased four percent on a constant currency basis, primarily due to higher sales of popular priced wine in mainland Europe, and a slight increase in net sales for the U.K. On a constant currency basis, net sales for Australia/New Zealand branded wine were even with the prior year. The branded wine market in the U.K. and Australia reflects ongoing competitive challenges and continued pricing pressure.

Total spirits net sales increased 31 percent for the quarter, primarily due to the March 2007 acquisition of SVEDKA Vodka, with 12 percent growth in organic net sales reflecting higher average selling prices and volume gains.

"SVEDKA's double-digit growth continues to prove that this is an exceptional brand," stated Sands. "We anticipate SVEDKA will continue to be a growth engine in our spirits portfolio. Additionally, focus on our premium offerings, including Black Velvet, the 99 Schnapps line and Ridgemont Reserve 1792 has bolstered our spirits portfolio performance."

Operating Income, Net Income, Diluted EPS Commentary

The decrease in operating income and the increase in equity earnings for third quarter 2008 were primarily due to the impact of reporting $62 million of equity earnings from the Crown Imports joint venture under the equity method.

Wines segment operating income decreased $12 million versus the prior year. This was primarily due to the impact of the U.K. and Australia business performance, which was somewhat offset by an increased contribution from the North American business. Spirits segment operating income increased $4 million primarily due to the addition of SVEDKA and from the increase in base business net sales, offset somewhat by higher material costs.

For the third quarter, acquisition-related integration costs, restructuring and related charges and unusual items totaled $3 million, compared with $45 million for the prior year. Net income and diluted EPS were also impacted by interest expense, which increased 13 percent to $82 million for third quarter 2008, primarily due to the financing of the SVEDKA acquisition and $500 million of share repurchases completed earlier this year.

On a year-to-date basis through November the company generated free cash flow of $173 million versus a usage of $22 million in the prior year. The increase in free cash flow was primarily driven by improved working capital, reduced tax payments and lower capital spending. As a result of the strong free cash flow generated through the first three quarters of the fiscal year, the company has increased its free cash flow guidance for fiscal 2008 to a range of $280 - $300 million.

Acquisition and integration of Fortune Brands U.S. wine business

Constellation Brands completed the acquisition of the Fortune Brands U.S. wine portfolio on Dec. 17, 2007, for a purchase price of $885 million, subject to closing adjustments. Today, the company announced its plan for the integration of the acquired business into the Constellation Wines U.S. business. The company intends to consolidate activities wherever it makes business sense to do so, while maintaining an appropriate level of expertise to maintain and grow the acquired business.

"This acquisition significantly advances our strategy for expanding our presence in the growing high-end U.S. wine business," stated Sands. "To fully leverage the acquisition we will realign the sales and marketing organization supporting our U.S. wine business. The sales and marketing teams will focus on specific consumer segments that include luxury/fine wine, premium wine and value/specialty wine. In connection with these actions, we are also rationalizing our U.S. wine product portfolio, primarily related to our value products, which we believe will generate efficiencies and enhance our focus on higher growth, higher margin brands," Sands concluded.

Constellation expects the integration of the acquired wine business, realignment of the U.S. wine sales and marketing teams and portfolio rationalization to produce net cost savings of approximately $30 million annually by the end of fiscal 2010, with approximately $20 million anticipated as savings in fiscal 2009. The company expects to incur one-time cash charges of $22 million and one-time non-cash charges of $23 million, for a total of $45 million in one-time charges. The expected timing of the charges is as follows:



    $ in millions                                   FY08       FY09    Total

    Restructuring costs - employee termination
     and other                                        $6         $1       $7
    Acquisition-related integration costs              8          5       13
    Other one-time costs                               2          -        2
    Total cash costs                                  16          6       22

    Non-cash costs - asset write-offs and
     accelerated depreciation                         21          2       23

    Total one-time costs to be recorded in the
     company's results of operations                  $37         $8      $45

The company also expects to incur one-time cash costs of approximately $28 million that will be recorded in the company's allocation of purchase price in connection with the acquired wine business, including $19 million for employee termination costs and $9 million for contract termination and other costs that will be paid primarily in fiscal 2009.

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. The company's comparable basis diluted EPS range includes an estimated $0.04 dilutive impact related to the acquisition of the Fortune Brands U.S. wine business.



                    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         $1.06 - $1.11     $1.38     $1.33 - $1.38    $1.68

Full-year fiscal 2008 guidance includes the following current assumptions, including the impact of the acquisition and integration of the Fortune Brands U.S. wine business discussed above:

    -- Net sales: low single-digit growth in organic net sales and low single-
       digit incremental benefit from the acquisitions of Vincor International
       Inc., the SVEDKA Vodka brand and related business, and the U.S. wine
       business from Fortune Brands.  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 29 to 31 percent
       from net sales for fiscal year 2007

    -- Interest expense: approximately $340 - $350 million

    -- Stock compensation expense: approximately $30 million

    -- Tax rate: approximately 39 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 37 percent on a comparable basis

    -- Weighted average diluted shares outstanding: approximately 225 million

    -- Free cash flow: $280 - $300 million

    Conference Call

A conference call to discuss third quarter 2008 results and outlook will be hosted by President and Chief Executive Officer Rob Sands and Executive Vice President and Chief Financial Officer Bob Ryder on Tuesday, Jan. 8, 2008 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 regarding Constellation's business strategy, future operations, financial position, estimated revenues, projected costs, prospects, plans and objectives of management, as well as information concerning expected actions of third parties, are forward-looking statements (collectively, the "Projections") that involve risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by the Projections.

During the current quarter, Constellation may reiterate the Projections. Prior to the start of the company's quiet period, which will begin at the close of business on Feb. 15, 2008, 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 Feb. 15, 2008, 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 Projections 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 Projections of the company contained in this news release are subject to a number of risks and uncertainties, including the successful:

    -- integration of acquired businesses, realization of expected synergies
       and completion of various portfolio actions;
    -- continued strength of the relationships of acquired businesses with
       their respective employees, suppliers and customers;
    -- achievement of all expected cost savings from the company's various
       restructuring plans;
    -- realization of expected proceeds from sale of assets identified for
       sale under the company's various restructuring plans; and
    -- achievement of sales projections and cost target levels.

The Projections contained in this news release are subject to the following additional risk factors:

    -- the accuracy of the bases for forecasts relating to acquired
       businesses;
    -- 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 March 19, 2007
       acquisition of the SVEDKA Vodka brand and related business and in the
       December 17, 2007 acquisition of the U.S. wine portfolio of Fortune
       Brands, Inc.;
    -- restructuring and related charges, acquisition-related integration
       costs and purchase accounting adjustments associated with the company's
       various integration and restructuring plans 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 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;
    -- realization of lower than expected proceeds from sale of assets
       identified for sale and the consequent incurrence of a greater than
       expected loss on the sale of such assets;
    -- 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;
    -- inherent unpredictability of currency fluctuations, commodity prices
       and raw material costs;
    -- general economic, business, geo-political and regulatory conditions or
       unanticipated environmental liabilities and costs;
    -- a general decline in alcohol consumption;
    -- changes to accounting rules and tax laws, as well as other factors
       which could impact the company's reported financial position or
       effective tax rate;
    -- changes in interest rates and foreign currency exchange rates; and
    -- other factors and uncertainties disclosed from time to time in the
       company'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 could cause actual future performance to differ from
       current expectations.

The company has interests in various joint ventures. Risks and uncertainties associated with these joint ventures include, among others, each joint venture's:

    -- ability to operate the business successfully and realize any
       efficiencies;
    -- ability to develop appropriate standards, controls, procedures and
       policies for the growth and management of such joint venture;
    -- continued strength of relationships with, including without limitation,
       its employees, suppliers and customers; and
    -- ability to accurately forecast costs and capital investment
       requirements.

Any Projections in this news release should be evaluated in light of these important factors and uncertainties.



    Constellation Brands, Inc. and Subsidiaries
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in millions)
                                                  November 30,    February 28,
                                                     2007             2007
     Assets

       Current Assets:
         Cash and cash investments                  $24.9             $33.5
         Accounts receivable, net                   938.5             881.0
         Inventories                              2,041.4           1,948.1
         Prepaid expenses and other                 142.7             160.7

           Total current assets                   3,147.5           3,023.3

       Property, plant and equipment, net         1,791.9           1,750.2
       Goodwill                                   3,427.9           3,083.9
       Intangible assets, net                     1,252.7           1,135.4
       Other assets, net                            573.6             445.4

         Total assets                           $10,193.6          $9,438.2

     Liabilities and Stockholders' Equity

       Current Liabilities:
         Notes payable to banks                    $101.7            $153.3
         Current maturities of long-term debt       366.9             317.3
         Accounts payable                           350.8             376.1
         Accrued excise taxes                       107.9              73.7
         Other accrued expenses and liabilities     667.3             670.7

           Total current liabilities              1,594.6           1,591.1

       Long-term debt, less current maturities    4,235.2           3,714.9
       Deferred income taxes                        498.2             474.1
       Other liabilities                            352.9             240.6

         Total liabilities                        6,680.9           6,020.7

         Total stockholders' equity               3,512.7           3,417.5

         Total liabilities and
          stockholders' equity                  $10,193.6          $9,438.2



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

                                       Three Months Ended   Nine Months Ended
                                        Nov. 30  Nov. 30    Nov. 30  Nov. 30
                                         2007      2006      2007      2006

     Sales                             $1,406.4  $1,834.2  $3,749.7  $4,979.3
     Excise taxes                        (311.6)   (333.4)   (861.1)   (905.1)
       Net sales                        1,094.8   1,500.8   2,888.6   4,074.2

     Cost of product sold                (702.9) (1,055.6) (1,918.8) (2,895.6)
       Gross profit                       391.9     445.2     969.8   1,178.6

     Selling, general and
      administrative expenses            (192.1)   (197.8)   (580.2)   (574.8)
     Acquisition-related
      integration costs                    (1.6)     (9.5)     (5.2)    (17.6)
     Restructuring and related charges      0.1      (2.1)     (0.7)    (26.1)
       Operating income                   198.3     235.8     383.7     560.1

     Equity in earnings of equity
      method investees                     74.2      10.4     230.1      10.7
     Interest expense, net                (82.4)    (73.1)   (248.8)   (194.3)
     Gain on change in fair value of
      derivative instrument                   -         -         -      55.1
       Income before income taxes         190.1     173.1     365.0     431.6

     Provision for income taxes           (70.5)    (65.3)   (143.5)   (169.9)
       Net income                         119.6     107.8     221.5     261.7

     Dividends on preferred stock             -         -         -      (4.9)
       Income available to common
        stockholders                     $119.6    $107.8    $221.5    $256.8


     Earnings Per Common Share:
       Basic - Class A Common Stock       $0.56     $0.47     $1.02     $1.14
       Basic - Class B Common Stock       $0.51     $0.42     $0.92     $1.04

       Diluted - Class A Common Stock     $0.55     $0.45     $0.99     $1.09
       Diluted - Class B Common Stock     $0.50     $0.41     $0.91     $1.00

     Weighted Average Common Shares
      Outstanding:
       Basic - Class A Common Stock     191.578   209.524   196.191   203.113
       Basic - Class B Common Stock      23.809    23.837    23.817    23.845

       Diluted - Class A Common Stock   219.432   239.396   224.093   239.889
       Diluted - Class B Common Stock    23.809    23.837    23.817    23.845



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

                                                       Nine Months Ended
                                                 November 30,     November 30,
                                                    2007              2006
     Cash Flows From Operating Activities
       Net income                                  $221.5             $261.7
       Adjustments to reconcile net income to net
        cash provided by operating activities:
         Depreciation of property, plant
          and equipment                             109.3               92.2
         Deferred tax provision                      29.9               31.5
         Stock-based compensation expense            24.1               12.1
         Equity in earnings of equity method
          investees, net of distributed earnings     10.5               (7.2)
         Amortization of intangible and
          other assets                                8.2                6.0
         Loss on disposal of business                 6.8               16.9
         (Gain) loss on disposal or impairment of
          long-lived assets, net                     (4.9)              10.7
         Gain on change in fair value of
          derivative instrument                         -              (55.1)
         Non-cash portion of loss on
          extinguishment of debt                        -               11.8
         Change in operating assets and liabilities,
          net of effects from purchases and sales
          of businesses:
           Accounts receivable, net                (200.2)            (275.7)
           Inventories                              (58.5)            (147.7)
           Prepaid expenses and other current
            assets                                   10.7              (45.1)
           Accounts payable                          48.7              172.0
           Accrued excise taxes                      46.9               13.3
           Other accrued expenses and liabilities    54.8               19.5
         Other, net                                 (55.5)              (3.7)
             Total adjustments                       30.8             (148.5)
             Net cash provided by operating
              activities                            252.3              113.2

     Cash Flows From Investing Activities
       Purchase of business, net of cash acquired  (389.7)          (1,093.7)
       Purchases of property, plant and equipment   (79.5)            (135.6)
       Payment of accrued earn-out amount            (4.0)              (3.7)
       Investment in equity method investee          (1.5)                 -
       Proceeds from formation of joint venture     185.6                  -
       Proceeds from sales of assets                  8.7                8.8
       Proceeds from sales of businesses              3.0               28.4
       Proceeds from maturity of derivative
        instrument                                      -               55.1
       Other investing activities                       -               (0.4)
           Net cash used in investing activities   (277.4)          (1,141.1)

     Cash Flows From Financing Activities
       Proceeds from issuance of long-term debt     716.1            3,695.0
       Exercise of employee stock options            17.7               51.3
       Excess tax benefits from stock-based
        payment awards                               11.4               16.9
       Proceeds from employee stock purchases         3.0                3.3
       Purchases of treasury stock                 (500.0)            (100.0)
       Principal payments of long-term debt        (168.6)          (2,780.3)
       Net (repayment of) proceeds from
        notes payable                               (57.6)             210.5
       Payment of financing costs of long-
        term debt                                    (6.1)             (20.2)
       Payment of preferred stock dividends             -               (7.3)
           Net cash provided by financing
            activities                               15.9            1,069.2

     Effect of exchange rate changes on
      cash and cash investments                       0.6              (17.5)

     Net (decrease) increase in cash and
      cash equivalents                               (8.6)              23.8
     Cash and cash investments, beginning
      of period                                      33.5               10.9
     Cash and cash investments, end of
      period                                        $24.9              $34.7



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

                                               Three Months Ended
                                            November 30, November 30,  Percent
                                               2007         2006       Change

    Segment Net Sales and Operating Income
      Constellation Wines
        Branded wine net sales                 $911.3       $815.9       12%
        Wholesale and other net sales            66.1        291.3      (77%)
          Segment net sales                    $977.4     $1,107.2      (12%)
          Operating income                     $201.9       $214.3       (6%)
          % Net sales                            20.7%        19.4%
          Equity in earnings of equity
           method investees                     $12.5        $10.4       NM

      Constellation Beers
          Segment net sales                        $-       $303.8     (100%)
          Operating income                         $-        $60.2     (100%)
          % Net sales                             N/A         19.8%

      Constellation Spirits
          Segment net sales                    $117.4        $89.8       31%
          Operating income                      $21.4        $17.1       25%
          % Net sales                            18.2%        19.0%

      Crown Imports
          Segment net sales                    $547.7           $-      N/A
          Operating income                     $123.0           $-      N/A
          % Net sales                            22.5%         N/A

      Consolidation and Eliminations
          Segment net sales                   $(547.7)          $-      N/A
          Operating income                    $(123.0)          $-      N/A
          Equity in earnings of Crown Imports   $61.7           $-      N/A

      Corporate Operations and Other
          Consolidated net sales             $1,094.8     $1,500.8      (27%)
          Operating income                     $(22.9)      $(12.6)      82%
          % Net sales                             2.1%         0.8%



                                               Nine Months Ended
                                            November 30, November 30,  Percent
                                               2007         2006       Change

    Segment Net Sales and Operating Income
      Constellation Wines
        Branded wine net sales               $2,270.1     $2,049.6       11%
        Wholesale and other net sales           299.4        814.4      (63%)
          Segment net sales                  $2,569.5     $2,864.0      (10%)
          Operating income                     $413.0       $474.3      (13%)
          % Net sales                            16.1%        16.6%
          Equity in earnings of equity
           method investees                     $16.2        $10.7       NM

      Constellation Beers
          Segment net sales                        $-       $953.5     (100%)
          Operating income                         $-       $199.2     (100%)
          % Net sales                             N/A         20.9%

      Constellation Spirits
          Segment net sales                    $319.1       $256.7       24%
          Operating income                      $58.1        $52.5       11%
          % Net sales                            18.2%        20.5%

      Crown Imports
          Segment net sales                  $1,928.5           $-      N/A
          Operating income                     $426.6           $-      N/A
          % Net sales                            22.1%         N/A

      Consolidation and Eliminations
          Segment net sales                 $(1,928.5)          $-      N/A
          Operating income                    $(426.6)          $-      N/A
          Equity in earnings of Crown Imports  $213.9           $-      N/A

      Corporate Operations and Other
          Consolidated net sales             $2,888.6     $4,074.2      (29%)
          Operating income                     $(63.3)      $(44.8)      41%
          % Net sales                             2.2%         1.1%



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

                                                                      Constant
                                                                      Currency
                                         Three Months Ended              Per-
                                                            Per-  Curr-  cent
                                          Nov. 30 Nov. 30   cent  ency  Change
                                            2007    2006   Change Impact  (3)
    Geographic Net Sales (1)(2)
      North America                        $766.9  $990.6   (23%)   1%   (24%)
        Branded wine                       $622.4  $580.2     7%    2%     5%
        Imported beers                         $-  $303.8  (100%)   -   (100%)
        Spirits                            $117.4   $89.8    31%    -     31%
        Wholesale and other                 $27.1   $16.8    61%    8%    54%

      Europe                               $215.6  $413.2   (48%)   4%   (52%)
        Branded wine                       $183.0  $143.9    27%   10%    18%
        Wholesale and other                 $32.6  $269.3   (88%)   1%   (89%)

      Australia/New Zealand                $112.3   $97.0    16%   15%     -
        Branded wine                       $105.9   $91.8    15%   15%     -
        Wholesale and other                  $6.4    $5.2    23%   17%     6%



                                                                       Organic
                                                                      Constant
                                                      Acqui- Divest-  Currency
                               Three Months Ended     sition iture       Per-
                                                 Per-  Im-   Im-  Curr-  cent
                                 Nov.30, Nov.30, cent  pact  pact  ency Change
                                 2007    2006   Change (4)   (5)  Impact  (3)
    Branded Wine Geographic Net
     Sales (1)(2)
        North America            $622.4  $580.2    7%   -     -      2%    5%
        Europe                    183.0   143.9   27%   -    13%    10%    4%
        Australia/New Zealand     105.9    91.8   15%   -     -     15%    -
          Consolidated branded
           wine net sales        $911.3  $815.9   12%   -     2%     5%    4%



                                                                      Constant
                                                                      Currency
                                       Nine Months Ended                 Per-
                                                          Per-           cent
                                       Nov.30,   Nov.30,  cent Currency Change
                                        2007      2006    Change Impact    (3)
    Geographic Net Sales (1)(2)
      North America                   $1,877.1  $2,673.9   (30%)   1%   (30%)
        Branded wine                  $1,503.9  $1,431.8     5%    1%     4%
        Imported beers                      $-    $953.5  (100%)   -   (100%)
        Spirits                         $319.1    $256.7    24%    -     24%
        Wholesale and other              $54.1     $31.9    70%    5%    64%

      Europe                            $712.2  $1,133.0   (37%)   5%   (42%)
        Branded wine                    $489.1    $369.9    32%   10%    22%
        Wholesale and other             $223.1    $763.1   (71%)   3%   (73%)

      Australia/New Zealand             $299.3    $267.3    12%   13%    (1%)
        Branded wine                    $277.1    $247.9    12%   13%    (1%)
        Wholesale and other              $22.2     $19.4    14%   12%     2%



                                                                       Organic
                                                                      Constant
                                                      Acqui- Divest-  Currency
                                  Nine Months Ended   sition iture       Per-
                                                  Per- Im-   Im-  Curr-  cent
                                Nov.30,  Nov.30,  cent pact  pact ency  Change
                                 2007     2006   Change (4)  (5)  Impact  (3)
    Branded Wine Geographic
     Net Sales (1)(2)
       North America          $1,503.9  $1,431.8    5%   6%    -     1%   (2%)
       Europe                    489.1     369.9   32%   7%   11%   10%    4%
       Australia/New Zealand     277.1     247.9   12%   4%    -    13%   (6%)
         Consolidated branded
          wine net sales      $2,270.1  $2,049.6   11%   6%    2%    4%   (1%)


    (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, included in the nine months ended
        November 30, 2007.

    (5) Divestiture impact includes the add-back of U.K. branded wine net
        sales previously sold through the U.K. wholesale business for the
        three months and nine months ended November 30, 2006.



    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, plus net
    sales of U.K. branded wine, 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
                                                                       Percent
                                     Nov. 30, Nov. 30, Percent Currency Change
                                       2007     2006   Change  Impact    (1)
    Consolidated Net Sales
       Branded wine                   $911.3   $815.9    12%     5%       7%
       Wholesale and other              66.1    291.3   (77%)    2%     (79%)
       Imported beers                      -    303.8  (100%)    -     (100%)
       Spirits                         117.4     89.8    31%     -       31%
         Consolidated reported net
          sales                      1,094.8  1,500.8   (27%)    3%     (30%)
       Less:  Vincor (2)                   -        -
       Less:  Imported beers (3)           -   (303.8)
       Less:  Svedka (4)               (16.9)       -
       Less:  U.K. wholesale, net of
        U.K. branded wine (5)              -   (222.8)
         Consolidated organic net
          sales                     $1,077.9   $974.2    11%     5%       6%


    Branded Wine Net Sales
       Branded wine reported net
        sales                         $911.3   $815.9    12%     5%       7%
       Less:  Vincor (2)                   -        -
       Plus:  U.K. branded wine (5)        -     18.8
         Branded wine organic net
          sales                       $911.3   $834.7     9%     5%       4%


    Spirits Net Sales
       Spirits reported net sales     $117.4    $89.8    31%     -       31%
       Less:  Svedka (4)               (16.9)       -
         Spirits organic net sales    $100.5    $89.8    12%     -       12%


    Wholesale and Other Net Sales
       Wholesale and other reported
        net sales                      $66.1   $291.3   (77%)    2%     (79%)
       Less:  Vincor (2)                   -        -
       Less:  U.K. wholesale (5)           -   (241.6)
         Wholesale and other organic
          net sales                    $66.1    $49.7    33%     9%      24%



                                                                      Constant
                                     Nine Months Ended                Currency
                                                                       Percent
                                     Nov. 30, Nov. 30, Percent Currency Change
                                       2007     2006   Change  Impact    (1)
    Consolidated Net Sales
       Branded wine                 $2,270.1  $2,049.6   11%     4%       7%
       Wholesale and other             299.4     814.4  (63%)    3%     (66%)
       Imported beers                      -     953.5 (100%)    -     (100%)
       Spirits                         319.1     256.7   24%     -       24%
         Consolidated reported net
          sales                      2,888.6   4,074.2  (29%)    3%     (32%)
       Less:  Vincor (2)              (133.7)        -
       Less:  Imported beers (3)           -    (953.5)
       Less:  Svedka (4)               (40.3)        -
       Less:  U.K. wholesale, net of
        U.K. branded wine (5)              -    (536.1)
         Consolidated organic net
          sales                     $2,714.6  $2,584.6    5%     4%       1%


    Branded Wine Net Sales
       Branded wine reported net
        sales                       $2,270.1  $2,049.6   11%     4%       7%
       Less:  Vincor (2)              (126.3)        -
       Plus:  U.K. branded wine (5)        -      40.4
         Branded wine organic net
          sales                     $2,143.8  $2,090.0    3%     4%      (1%)


    Spirits Net Sales
       Spirits reported net sales     $319.1    $256.7   24%     -       24%
       Less:  Svedka (4)               (40.3)    -
         Spirits organic net sales    $278.8    $256.7    9%     -        9%


    Wholesale and Other Net Sales
       Wholesale and other reported
        net sales                     $299.4    $814.4  (63%)    3%     (66%)
       Less:  Vincor (2)                (7.4)        -
       Less:  U.K. wholesale (5)           -    (576.5)
         Wholesale and other organic
          net sales                   $292.0    $237.9   23%    10%      13%


    (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
        nine months ended November 30, 2007.

    (3) For the three months and nine months ended November 30, 2006.

    (4) For the three months ended November 30, 2007, and for the period March
        19, 2007, through November 30, 2007, included in the nine months ended
        November 30, 2007.

    (5) Amount includes net sales of U.K. wholesale business, net of U.K.
        branded wine net sales previously sold through the U.K. wholesale
        business, for the three months ended November 30, 2006, and for the
        period April 17, 2006, through November 30, 2006, included in the nine
        months ended November 30, 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 November 30, 2007, and November 30, 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 November 30, 2007

                           Reported             Strategic           Comparable
                           Basis    Inventory    Business             Basis
                           (GAAP)    Step-up   Realignment(1) Other (Non-GAAP)
     Net Sales             $1,094.8                                  $1,094.8
      Cost of product sold   (702.9)    2.9          2.5       -       (697.5)
     Gross Profit             391.9     2.9          2.5       -        397.3
      Selling, general and
       administrative
       expenses ("SG&A")     (192.1)                (4.8)              (196.9)
      Acquisition-related
       integration costs       (1.6)                 1.6                    -
      Restructuring and
       related charges          0.1                 (0.1)                   -
     Operating Income         198.3     2.9         (0.8)       -       200.4
      Equity in earnings of
       equity method investees 74.2     0.6                              74.8
     EBIT                                                               275.2
      Interest expense, net   (82.4)                                    (82.4)
      Gain on change in fair
       value of derivative
       instrument                 -                                         -
     Income Before
      Income Taxes            190.1     3.5         (0.8)       -       192.8
       Provision for
        income taxes          (70.5)   (1.2)         0.2        -       (71.5)
     Net Income              $119.6    $2.3        $(0.6)      $-      $121.3
     Diluted Earnings Per
      Common Share(3)         $0.55   $0.01        $  -        $-       $0.55
     Weighted Average Common
      Shares Outstanding
      - Diluted             219.432 219.432      219.432   219.432    219.432

     Gross Margin             35.8%                                     36.3%
     SG&A as a percent
      of net sales            17.5%                                     18.0%
     Operating Margin         18.1%                                     18.3%
     Effective Tax Rate       37.1%                                     37.1%



                                    Three Months Ended November 30, 2006

                           Reported            Strategic            Comparable
                             Basis   Inventory  Business               Basis
                            (GAAP)   Step-up   Realignment   Other  (Non-GAAP)
                                                  (1)         (2)
     Net Sales              $1,500.8                                 $1,500.8
      Cost of product sold  (1,055.6)   17.8      2.3         0.6    (1,034.9)
     Gross Profit              445.2    17.8      2.3         0.6       465.9
      Selling, general and
       administrative
       expenses("SG&A")       (197.8)            10.8          -       (187.0)
      Acquisition-related
       integration costs        (9.5)             9.5                      -
      Restructuring and related
       charges                  (2.1)             2.1                      -
     Operating Income          235.8    17.8     24.7         0.6       278.9
      Equity in earnings of
       equity method investees  10.4     1.8                             12.2
     EBIT                                                               291.1
      Interest expense, net    (73.1)                                   (73.1)
      Gain on change in fair
       value of derivative
       instrument                  -                           -         -
     Income Before
      Income Taxes             173.1    19.6     24.7         0.6       218.0
      Provision for
       income taxes            (65.3)   (7.1)    (6.2)       (0.2)      (78.8)
     Net Income               $107.8   $12.5    $18.5        $0.4      $139.2
     Diluted Earnings Per
      Common Share(3)          $0.45   $0.05    $0.08        $ -        $0.58
     Weighted Average Common
      Shares
       Outstanding
      - Diluted              239.396 239.396  239.396     239.396     239.396

     Gross Margin              29.7%                                    31.0%
     SG&A as a percent of net
      sales                    13.2%                                    12.5%
     Operating Margin          15.7%                                    18.6%
     Effective Tax Rate        37.7%                                    36.1%



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

     Net Sales                                  (27%)             (27%)
      Cost of product sold                      (33%)             (33%)
     Gross Profit                               (12%)             (15%)
      Selling, general and administrative
       expenses ("SG&A")                         (3%)               5%
      Acquisition-related integration costs     (83%)              N/A
      Restructuring and related charges        (105%)              N/A
     Operating Income                           (16%)             (28%)
      Equity in earnings of equity method
       investees                                613%              513%
     EBIT                                        N/A               (5%)
      Interest expense, net                      13%               13%
      Gain on change in fair value of
       derivative instrument                     N/A               N/A
     Income Before Income Taxes                  10%              (12%)
      Provision for income taxes                  8%               (9%)
     Net Income                                  11%              (13%)
     Diluted Earnings Per Common Share(3)        22%               (5%)
     Weighted Average Common Shares
      Outstanding - Diluted

     Gross Margin
     SG&A as a percent of net sales
     Operating Margin
     Effective Tax Rate

    (1) For the three months ended November 30, 2007, strategic business
        realignment items primarily include a realized gain on a prior asset
        sale of $3.3 million, net of additional tax expense of $1.5 million,
        partially offset by costs recognized by the company primarily in
        connection with (i) its plan to streamline certain of its
        international operations, primarily in Australia, and its plan to
        streamline certain of its operations in the U.S., primarily in
        connection with the restructuring and integration of the operations of
        the acquired Fortune Brands U.S. wine portfolio (collectively, the
        "Fiscal 2008 Plan") of $1.2 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 $0.8
        million, net of a tax benefit of $0.4 million, (iii)  the
        restructuring and integration of the operations of Vincor
        International Inc. (the "Vincor Plan") of $0.5 million, net of a tax
        benefit of $0.2 million, and (iv)  its worldwide wine reorganization,
        including its program to consolidate certain west coast production
        processes in the U.S. (collectively, the "Fiscal 2006 Plan") of $0.3
        million, net of a tax benefit of $0.2 million.  For the three months
        ended November 30, 2006, strategic business realignment items
        primarily include costs recognized by the company in connection with
         (i)  the Fiscal 2007 Wine Plan of $12.0 million, net of a tax benefit
        of $2.5 million, (ii) the Vincor Plan of $6.1 million, net of a tax
        benefit of $3.5 million, (iii)  the Fiscal 2006 Plan of $0.6 million,
        net of a tax benefit of $0.5 million, and (iv) the reduction in the
        loss on the sale of the company's branded bottled water business of
        $0.5 million, net of tax expense of $0.3 million.

    (2) For the three months ended November 30, 2006, other includes $0.4
        million, net of a tax benefit of $0.2 million, of adverse grape costs
        recognized in connection with the acquisition of The Robert Mondavi
        Corporation.

    (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)
    (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 nine months ended November 30, 2007, and November 30, 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.



                                     Nine Months Ended November 30, 2007

                           Reported             Strategic           Comparable
                            Basis    Inventory  Business              Basis
                           (GAAP)     Step-up  Realignment(1) Other (Non-GAAP)
                                                              (2)
     Net Sales              $2,888.6                                 $2,888.6
      Cost of product sold  (1,918.8)    8.1        6.8        0.1   (1,903.8)
     Gross Profit              969.8     8.1        6.8        0.1      984.8
      Selling, general and
       administrative
       expenses               (580.2)               3.2                (577.0)
      Acquisition-related
       integration costs        (5.2)               5.2                     -
      Restructuring and related
       charges                  (0.7)               0.7                     -
     Operating Income          383.7     8.1       15.9        0.1      407.8
      Equity in earnings of
       equity method investees 230.1     0.9                            231.0
     EBIT                                                               638.8
      Interest expense, net   (248.8)                                  (248.8)
      Gain on change in fair
       value of derivative
       instrument                  -                                        -
     Income Before
      Income Taxes             365.0     9.0       15.9        0.1      390.0
      Provision for
       income taxes           (143.5)   (3.2)       4.0       (0.1)    (142.8)
     Net Income               $221.5    $5.8      $19.9      $   -     $247.2
     Diluted Earnings Per
      Common Share(3)          $0.99   $0.03      $0.09      $   -      $1.10
     Weighted Average Common
      Shares
       Outstanding
      - Diluted              224.093 224.093    224.093    224.093    224.093

     Gross Margin              33.6%                                    34.1%
     SG&A as a percent of net
      sales                    20.1%                                    20.0%
     Operating Margin          13.3%                                    14.1%
     Effective Tax Rate        39.3%                                    36.6%



                                     Nine Months Ended November 30, 2006

                           Reported             Strategic           Comparable
                            Basis    Inventory  Business              Basis
                           (GAAP)     Step-up  Realignment(1) Other (Non-GAAP)
                                                              (2)
     Net Sales             $4,074.2                                  $4,074.2
      Cost of product sold (2,895.6)    24.3      4.7         3.0    (2,863.6)
     Gross Profit           1,178.6     24.3      4.7         3.0     1,210.6
      Selling, general and
       administrative
       expenses              (574.8)             28.1        17.2      (529.5)
      Acquisition-related
       integration costs      (17.6)             17.6                       -
      Restructuring and related
       charges                (26.1)             26.1                       -
     Operating Income         560.1     24.3     76.5        20.2       681.1
      Equity in earnings of
       equity method investees 10.7      2.7                             13.4
     EBIT                                                               694.5
      Interest expense, net  (194.3)                                   (194.3)
      Gain on change in fair
       value of derivative
       instrument              55.1                         (55.1)          -
     Income Before
      Income Taxes            431.6     27.0     76.5       (34.9)      500.2
      Provision for
       income taxes          (169.9)    (9.7)   (14.8)       12.6      (181.8)
     Net Income              $261.7    $17.3    $61.7      $(22.3)     $318.4
     Diluted Earnings Per
      Common Share(3)        $1.09     $0.07    $0.26      $(0.09)      $1.33
     Weighted Average Common
      Shares
       Outstanding
       - Diluted           239.889   239.889  239.889     239.889     239.889

     Gross Margin            28.9%                                      29.7%
     SG&A as a percent of net
      sales                  14.1%                                      13.0%
     Operating Margin        13.7%                                      16.7%
     Effective Tax Rate      39.4%                                      36.3%





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

     Net Sales                                   (29%)             (29%)
      Cost of product sold                       (34%)             (34%)
     Gross Profit                                (18%)             (19%)
      Selling, general and administrative
       expenses                                    1%                9%
      Acquisition-related integration
       costs                                     (70%)              N/A
      Restructuring and related charges          (97%)              N/A
     Operating Income                            (31%)             (40%)
      Equity in earnings of equity method
       investees                                   NM                NM
     EBIT                                         N/A               (8%)
      Interest expense, net                       28%               28%
      Gain on change in fair value of
       derivative instrument                    (100%)              N/A
     Income Before Income Taxes                  (15%)             (22%)
      Provision for income taxes                 (16%)             (21%)
     Net Income                                  (15%)             (22%)
     Diluted Earnings Per Common Share(3)         (9%)             (17%)
     Weighted Average Common Shares

      Outstanding - Diluted

     Gross Margin
     SG&A as a percent of net sales
     Operating Margin
     Effective Tax Rate


    (1) For the nine months ended November 30, 2007, strategic business
        realignment items include primarily a loss on disposal in connection
        with the company's contribution of its U.K. wholesale business of
        $13.8 million, including $7.2 million additional tax expense, and
        costs recognized by the company primarily in connection with (i)  the
        Fiscal 2007 Wine Plan of $3.3 million, net of a tax benefit of $1.5
        million, (ii)  the Vincor Plan of $2.9 million, net of a tax benefit
        of $1.4 million, (iii)  the Fiscal 2006 Plan of $1.9 million, net of a
        tax benefit of $1.2 million, and (iv)  the Fiscal 2008 Plan of $1.2
        million, net of a tax benefit of $0.6 million, partially offset by a
        realized gain on a prior asset sale of $3.3 million, net of additional
        tax expense of $1.5 million.  For the nine months ended November 30,
        2006, strategic business realignment items consist primarily of costs
        recognized by the company in connection with (i)  the Fiscal 2007 Wine
        Plan of $26.3 million, net of a tax benefit of $7.8 million, (ii) the
        Vincor Plan of $11.6 million, net of a tax benefit of $6.7 million,
         (iii)  the Fiscal 2006 Plan of $6.2 million, net of a tax benefit of
        $3.5 million, (iv)  its plans to restructure and integrate the
        operations of The Robert Mondavi Corporation (the "Robert Mondavi
        Plan") of $0.6 million, net of a tax benefit of $0.3 million, and (v)
        the loss on the sale of the company's branded bottled water business
        of $16.9 million, including $3.5 million additional tax expense.

    (2) For the nine months ended November 30, 2007, other includes $0.0
        million, net of a tax benefit of $0.1 million, of adverse grape costs
        recognized in connection with the acquisition of The Robert Mondavi
        Corporation.  For the nine months ended November 30, 2006, other
        includes (i)  a gain of $35.1 million, net of tax expense of $20.0
        million, on the mark-to-market adjustment of the foreign currency
        forward contract entered into by the company in connection with the
        acquisition of Vincor International Inc. ("Vincor") to fix the U.S.
        dollar cost of the acquisition and payment of certain outstanding
        indebtedness, (ii)  the write-off of deferred financing fees of $7.4
        million, net of a tax benefit of $4.4 million, in connection with the
        company's repayment of its prior senior credit facility, (iii)
        foreign currency losses of $3.4 million, net of a tax benefit of $2.0
        million, on foreign denominated intercompany loan balances associated
        with the acquisition of Vincor, and (iv)  $2.0 million, net of a tax
        benefit of $1.0 million, of adverse grape costs recognized in
        connection with the acquisition of The Robert Mondavi Corporation.

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

    NM  = Not Meaningful



    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
                                                    Ending February 29, 2008
    Diluted Earnings Per Share Guidance

    Forecasted diluted earnings per share
     - reported basis (GAAP)                         $1.06             $1.11
      Inventory step-up                               0.03              0.03
      Strategic business realignment(1)               0.24              0.24
    Forecasted diluted earnings per share
     - comparable basis (Non-GAAP)(2)                $1.33             $1.38



                                                               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 $0.15, $0.06, $0.02, $0.02, $0.01 and ($0.02) diluted
        earnings per share for the year ending February 29, 2008, associated
        with the Fiscal 2008 Plan, 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, the Fiscal
        2006 Plan, and the realized gain on a prior asset sale, 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)                              $430.0             $450.0
      Purchases of property, plant and equipment    (150.0)            (150.0)
    Free cash flow (Non-GAAP)                       $280.0             $300.0


                                            Actual for the     Actual for the
                                          Nine Months Ended  Nine Months Ended
                                          November 30, 2007  November 30, 2006

    Net cash provided by operating
     activities (GAAP)                              $252.3             $113.2
      Purchases of property, plant and equipment     (79.5)            (135.6)
    Free cash flow (Non-GAAP)                       $172.8             $(22.4)

SOURCE Constellation Brands, Inc.

CONTACT:
Media, Mike Martin
+1-585-218-3669
or
Angie Blackwell +1-585-218-3842
or
Investor Relations
Patty Yahn-Urlaub
+1-585-218-3838
or Bob Czudak
+1-585-218-3668
all of Constellation Brands, Inc.