Constellation Updates Financing Plans for Ravenswood Acquisition; Acquisition Accretive in Current Fiscal Year

FAIRPORT, N.Y., June 19 /PRNewswire/ -- Constellation Brands, Inc. (NYSE: STZ, STZ.B) announced today that it intends to finance the previously announced Ravenswood (Nasdaq: RVWD) acquisition exclusively with debt. The Company had previously announced that the acquisition would be financed with up to one-third equity capital.

"Our updated outlook for an even stronger year of cash flow opens up alternatives for financing Ravenswood," said Thomas Summer, Executive Vice President and Chief Financial Officer of Constellation. "This financing alternative achieves two of our key objectives; it maintains the strength of our balance sheet, while at the same time enhancing the value of the Ravenswood acquisition to our stockholders. Ravenswood will now be accretive to earnings per share in our current fiscal year."

Ravenswood will hold a special shareholders' meeting on June 26, 2001, to vote on the merger transaction and closing is targeted for July 2, 2001. Constellation intends to use its short-term borrowing facility to fund the transaction. The Company may consider long-term debt refinancing alternatives as market conditions permit.

About Constellation

Constellation Brands, Inc. is a leader in the production and marketing of beverage alcohol brands in North America and the United Kingdom and is a leading independent drinks wholesaler in the United Kingdom. Leading brands in Constellation's portfolio include: Franciscan Oakville Estate, Simi, Estancia, Corona Extra, Modelo Especial, St. Pauli Girl, Almaden, Arbor Mist, Talus, Vendange, Alice White, Black Velvet, Fleischmann's, Schenley, Ten High, Stowells of Chelsea, Blackthorn and K.

Forward-Looking Statements

Constellation makes forward-looking statements from time to time and desires to take advantage of the "safe harbor" which is afforded such statements under the Private Securities Litigation Reform Act of 1995 when they are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those in the forward-looking statements.

The statements set forth in this press 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 the forward-looking statements. Any projections of future results of operations should not be construed in any manner as a guarantee that such results will in fact occur. In particular, Constellation's expectation that the acquisition and its related financing will be accretive to earnings per share in Fiscal Year 2002, is based upon achieving certain sales projections, meeting certain cost targets and successfully integrating the acquired business. Statements regarding the expected closing of the transaction are subject to the risk that the closing conditions will not be satisfied and that the merger with not be consummated. There can be no assurance that any forward-looking statement in this press release will be realized or that actual results will not be significantly higher or lower than set forth in or implied by such forward-looking statement. For risk factors associated with Constellation and its business, please refer to Constellation's Securities and Exchange Commission filings.

SOURCE Constellation Brands, Inc.

CONTACT: Investor Relations - Mark Maring, 716-218-2132, or Media Relations - Ginny Clark, 716-218-2167, both of Constellation Brands, Inc./