Strong Wine Growth Drives Record Constellation Sales in 3rd Quarter

HIGHLIGHTS

* Second consecutive quarter of net sales above $1 billion

* Net sales up 10% from prior year

* Reported net income up 17% to $96.9 million

* Reported diluted EPS up 14% from prior year to $0.83

* Comparable basis net income up 9% to $99.2 million

* Comparable basis diluted EPS up 6% to $0.85

* Net sales for wines segment up 14%

* Net sales for beers and spirits segment up 2%

* Company affirms full-year diluted EPS guidance

* Robert Mondavi acquisition strengthens #1 global wine position

* Constellation also becomes top premium wine producer in U.S. and largest in U.S. dollar sales of wine

* Ruffino Tuscan wines, Effen Vodka also come aboard

FAIRPORT, N.Y., Jan. 6 /PRNewswire-FirstCall/ -- Constellation Brands, Inc. (NYSE: STZ, ASX: CBR), a leading international producer and marketer of beverage alcohol brands, today reported record net sales for its third quarter ended Nov. 30, 2004, topping $1 billion for the second consecutive quarter. Net sales increased 10 percent, driven by growth across the company's branded wine, U.K. wholesale and spirits businesses. Currency contributed four percent of the increase.

"Constellation's beverage alcohol business growth continues to be dynamic, with growth coming from existing brands in our wine and spirits portfolios, as well as from new product introductions, line extensions and marketing initiatives," stated Richard Sands, Constellation Brands chairman and chief executive officer. "We're also experiencing healthy growth from the Australian and New Zealand wines, as well as from our wholesale business in the United Kingdom. We're confident in the sustainability of our business growth trend, as well as our ability to create incremental value for our shareholders, customers and retailers."

Constellation's net income, as reported under generally accepted accounting principles ("reported"), increased 17 percent for the third quarter, to $96.9 million, and reported diluted earnings per share increased 14 percent to $0.83. Third quarter fiscal 2005 and fiscal 2004 reported results include restructuring and related charges and net unusual costs of $2.3 million after tax, or $0.02 per share, and $8.4 million after tax, or $0.08 per share, respectively. Net income, on a comparable basis, which excludes the restructuring and related charges and net unusual costs, increased nine percent, to $99.2 million, and comparable diluted earnings per share increased six percent to $0.85.

Constellation Wines Results

Net sales for the quarter grew 14 percent, to $773.8 million, driven by growth in branded wine net sales and the U.K. wholesale business, as well as a six percent favorable impact from currency.

Worldwide branded wine net sales increased 11 percent, to reach $509.5 million, driven by volume growth and a four percent benefit from currency.

Branded wine net sales in Europe grew 26 percent, including an 11 percent benefit from currency, with volume gains from Hardys, Stowells and the company's California wine brands. The demand for Australian and California wine continues to increase throughout the continent and Constellation continues to benefit from this trend.

Branded wine net sales in the U.S. increased eight percent, driven in part by distribution gains for brands given incremental marketing support, such as Alice White, Hardy's, Blackstone and Ravenswood, as well as by the fine wine portfolio which includes brands such as Franciscan Oakville Estate, Estancia, Simi and Mount Veeder.

Wholesale and other net sales increased 20 percent driven by strong U.K. wholesale volume and a 10 percent benefit from currency. The breadth of Constellation's portfolio, combined with its distribution scale, has allowed the company to continue to grow share in the U.K.

Operating income for Constellation Wines for the third quarter increased 13 percent to reach $127.7 million. For the quarter, operating margins were essentially even with last year on a percentage basis.

Constellation Beers and Spirits Results

Net sales for the quarter totaled $311.9 million, which was up two percent compared to last year's result. Beers net sales decreased two percent due to a reduction in volume driven primarily by last year's buy-in ahead of the Mexican portfolio price increase. Despite last year's price increase, the company's Mexican imported beers portfolio continues to maintain its retail market share as sales to retailers continued to increase. Across the U.S., Corona Extra is expected to post a volume record of 97 million cases in calendar 2004 when the sales numbers are finalized.

Spirits net sales increased 11 percent on strong growth in production services, bulk sales in our Canadian operations and continued growth in the branded business. Barton Vodka, Montezuma Tequila and Black Velvet Canadian Whisky were among the brands that contributed to solid branded spirits sales.

Operating income for Constellation Beers and Spirits totaled $71.4 million and was down slightly from prior year as a result of increased selling, general and administrative costs.

Robert Mondavi, Ruffino, Effen Come Aboard

"To ensure we continue to deliver profitable growth, we are vigilant in our quest for new opportunities that enhance and expand the breadth of our portfolio of offerings and operational scale," explained Sands. "The addition of the Robert Mondavi brand, and all it stands for with consumers, retailers, distributors and employees, is a major milestone in Constellation's 60-year history. The integration of the Robert Mondavi business is underway. We will provide this heralded portfolio of fine wines with the nurturing and support it deserves to grow both domestically and internationally, in the finest tradition of the Mondavi family name."

The acquisition of The Robert Mondavi Corporation ("Robert Mondavi") strengthens Constellation's position as the largest wine producer and marketer in the world, and makes it the top premium wine company in the U.S., as well as the largest wine company in the U.S. based on dollar sales.

On Dec. 3, 2004, Constellation announced the purchase of a 40 percent ownership position in the premier Italian fine wine producer Ruffino. "By adding well-known, respected and high quality Tuscan fine wines to our portfolio, we fill a need for a product line that is in growing demand by American consumers," stated Sands. "Our goal is to expand distribution, availability and sales volume for Ruffino's spectacular portfolio of fine Tuscan wines and we will be working closely with the Folonari family, owners of Ruffino since 1913, to increase Ruffino's presence in the U.S. Tuscany is the preeminent wine producing region of Italy, and Ruffino products range from $10 bottles of Ruffino Chianti Classico to $40+ bottles of Riserva Ducale Oro."

In late December, Constellation's Barton Brands entered into a joint venture with jstar Brands L.L.C. to form "Planet 10 Spirits L.L.C.", with the goal of creating and marketing premium spirits brands in the U.S. The first product marketed by the Planet 10 team will be Effen, an established Vodka brand imported from Northern Holland with significant growth potential in the U.S. Planet 10 creates a new strategic marketing and development company for the importation of premium spirits. With Barton's established sales and distribution capabilities, and the joint venture's marketing and new product development expertise, Planet 10 is optimistic about prospects for adding more premium spirits to its portfolio, and maximizing their growth.

Financing

On Dec. 22, 2004, the company entered into a new $2.9 billion credit agreement ("2004 Credit Agreement"), proceeds of which were used to fund the acquisition of Robert Mondavi, pay certain obligations of Robert Mondavi and repay the balance outstanding on Constellation's prior credit agreement.


         Certain Key Terms of the 2004 Credit Agreement ($ millions)

     Description    Available      Current       Maturity/        Balance
                     Amount     Interest Rate   Expiration    outstanding as
                                                             of Dec. 31, 2004
     Tranche A Term
      Loan            $  600     LIBOR + 1.50%   Nov. 2010         $  600
     Tranche B Term
      Loan            $1,800     LIBOR + 1.75%   Nov. 2011         $1,800
     Revolving Credit
      Facility        $  500     LIBOR + 1.50%   Dec. 2010         $    5

On Dec. 22, 2004, the company also entered into five-year interest rate swap agreements to minimize interest rate volatility. The swap agreements fix U.S. LIBOR interest rates on $1.2 billion of the company's floating rate debt at an average rate of four percent over the five-year term.

After the interest rate swap went into effect, the company's debt mix was approximately 65 percent fixed and 35 percent floating.

Summary

"Because our primary focus is on creating value on a sustained basis, we will continue to emphasize growing the sales volume of our existing product portfolio, creating new products and line extensions, and acquiring companies and brands that fit well with our business," said Sands. "We have beverage alcohol products for all occasions and for all consumers. Our portfolio breadth, production and distribution scale, marketing and sales expertise, entrepreneurial culture and decentralized structure allow us to be responsive to ever-changing consumer tastes and distributor needs. We will continue to build our portfolio, as well as our relationships with our distributor and retail customers, consumers, business partners, employees and suppliers in our quest to create true growth and value by offering quality products and services," concluded Sands.

About Constellation

Constellation Brands, Inc. is a leading international producer and marketer of beverage alcohol brands with a broad portfolio across the wine, spirits and imported beer categories. Well-known brands in Constellation's portfolio include: Corona Extra, Pacifico, St. Pauli Girl, Tsingtao, Black Velvet, Fleischmann's, Mr. Boston, Paul Masson Grande Amber Brandy, Franciscan Oakville Estate, Estancia, Simi, Ravenswood, Ruffino, Blackstone, Banrock Station, Hardys, Nobilo, Alice White, Vendange, Almaden, Arbor Mist, Stowells and Blackthorn.

With the completion of the Robert Mondavi acquisition, additional well- known brands such as Woodbridge, Robert Mondavi Private Selection and the Robert Mondavi Napa, District and Reserve wines are now part of Constellation's portfolio of wine offerings. For additional information about Constellation Brands, as well as its product portfolio, visit the company's Web site at http://www.cbrands.com.

Quarterly Conference Call

A conference call to discuss third quarter fiscal 2005 results will be hosted by Chairman and Chief Executive Officer Richard Sands and Executive Vice President and Chief Financial Officer Tom Summer on Thursday, Jan. 6, 2005 at 5:00 p.m. (Eastern). The conference call can be accessed by dialing 412-858-4600 beginning 10 minutes prior to the start of the call. A live listen-only web cast of the conference call, together with a copy of this press release (including the attachments) and other financial information that may be discussed in the call are available on the Internet at Constellation's web site: http://www.cbrands.com under "Investors."

Explanations

Net income and diluted earnings per share on a comparable basis exclude restructuring and related charges and net unusual costs. The company discusses results on a comparable basis in order to give investors better insight on underlying business trends from continuing operations.

A table reconciling these measures, as well as other related financial measures to reported results, is included in this release. For a detailed discussion of these items, please see the section "Items Affecting Comparability" following the financial statements. The company's measure of segment profitability excludes restructuring and related charges and net unusual costs, which is consistent with the measure used by management to evaluate results.

Outlook

The 2005 table below sets forth management's current diluted earnings per share expectations both on a reported basis and a comparable basis for the fourth quarter and fiscal year ending Feb. 28, 2005. This is compared to actual diluted earnings per share both on a reported basis and a comparable basis for the fourth quarter and fiscal year ended Feb. 29, 2004. The 2006 table below sets forth management's current diluted earnings per share expectations both on a reported basis and a comparable basis for the fiscal year ending Feb. 28, 2006.

With respect to both tables, the reported basis estimates are subject to final purchase accounting adjustments related to acquisitions. The reported basis and comparable basis estimates for the 2006 table exclude the impact of Statement of Financial Accounting Standards No. 123 (revised 2004) ("SFAS No. 123(R)") "Share-Based Payment," which the company is required to adopt during fiscal year 2006. With respect to both tables, reconciliations of reported information to comparable information are included in this media release.



           Constellation Brands Fourth Quarter and Fiscal Year 2005
                      Diluted Earnings Per Share Outlook

                                  Reported Basis            Comparable Basis
                                  FY05        FY04         FY05          FY04
                                Estimate     Actual      Estimate       Actual
     Fourth Quarter Ending
      Feb. 28/ Ended Feb. 29  $0.31 - $0.36  $0.55    $0.54 - $0.59     $0.54
     Fiscal Year Ending
      Feb. 28/ Ended Feb. 29  $2.29 - $2.34  $2.06    $2.62 - $2.67     $2.49


                    Constellation Brands Fiscal Year 2006
                      Diluted Earnings Per Share Outlook

                                                 FY 06 Estimate
                                            Reported        Comparable
                                              Basis           Basis
         Fiscal Year
     Ending Feb. 28, 2006                $2.77 - $2.92    $3.05 - $3.20

FORWARD-LOOKING STATEMENTS

The statements made under the heading Outlook (collectively, the "Outlook"), as well as all other 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 or implied by the forward-looking statements.

During the quarter, Constellation may reiterate the estimates set forth above under the heading Outlook. Prior to the start of the company's quiet period, beginning Feb. 14, 2005, the public can continue to rely on the Outlook as still being Constellation's current expectations on the matters covered, unless Constellation publishes a notice stating otherwise.

Beginning Feb. 14, 2005, Constellation will observe a "quiet period" during which the Outlook no longer constitutes the company's current expectations. During the quiet period, the Outlook 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 or financing that may be completed after the date of this release. Also, the reported basis and comparable basis estimates in the fiscal 2006 table under the heading Outlook exclude the impact of Statement of Financial Accounting Standards No. 123 (revised 2004)("SFAS No. 123(R)") "Share-Based Payment," which the company is required to adopt during fiscal year 2006. Any projections of future results of operations, and in particular, (i) the company's estimated diluted earnings per share on a reported basis for fourth quarter 2005 and fiscal 2005, (ii) the company's estimated diluted earnings per share on a comparable basis for fourth quarter 2005 and fiscal 2005, and (iii) the company's estimated diluted earnings per share on a reported basis and comparable basis for fiscal 2006, 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 press release are also subject to the following risks and uncertainties: the successful integration of the Robert Mondavi business into that of the company; final management determinations and independent appraisals vary materially from current management estimates of the fair value of assets acquired and liabilities assumed in the Robert Mondavi acquisition; 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; and changes in foreign currency exchange rates. For additional information about risks and uncertainties that could adversely affect the company's forward-looking statements, please refer to the company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended Feb. 29, 2004.



                   CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (in thousands)

                                                November 30,      February 29,
                                                      2004              2004
    ASSETS
    CURRENT ASSETS:
     Cash and cash investments                      $12,754           $37,136
     Accounts receivable, net                       906,317           635,910
     Inventories                                  1,443,430         1,261,378
     Prepaid expenses and other                     185,626           137,047
      Total current assets                        2,548,127         2,071,471
    PROPERTY, PLANT AND EQUIPMENT, net            1,124,070         1,097,362
    GOODWILL                                      1,562,762         1,540,637
    INTANGIBLE ASSETS, net                          748,106           744,978
    OTHER ASSETS, net                                96,819           104,225
     Total assets                                $6,079,884        $5,558,673

    LIABILITIES AND STOCKHOLDERS' EQUITY
    CURRENT LIABILITIES:
     Notes payable to banks                        $226,058            $1,792
     Current maturities of long-term debt            85,838           267,245
     Accounts payable                               383,416           270,291
     Accrued excise taxes                            73,579            48,465
     Other accrued expenses and liabilities         558,682           442,009
      Total current liabilities                   1,327,573         1,029,802
    LONG-TERM DEBT, less current maturities       1,716,685         1,778,853
    DEFERRED INCOME TAXES                           206,429           187,410
    OTHER LIABILITIES                               159,954           184,989
    STOCKHOLDERS' EQUITY                          2,669,243         2,377,619
     Total liabilities and stockholders' equity  $6,079,884        $5,558,673


                   CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                               ON A REPORTED BASIS
                      (in thousands, except per share data)

                                          For the Three For the Three
                                           Months Ended  Months Ended  Percent
                                           November 30,  November 30,   Change
                                                2004          2003
     Sales                                  $1,360,431    $1,213,541     12%
     Excise taxes                             (274,720)     (226,293)    21%
      Net sales                              1,085,711       987,248     10%
     Cost of product sold                     (772,047)     (704,632)    10%
      Gross profit                             313,664       282,616     11%
     Selling, general and administrative
      expenses                                (130,333)     (113,333)    15%
     Restructuring and related charges          (1,644)       (8,088)   -80%
      Operating income                         181,687       161,195     13%
     Gain on change in fair value of
      derivative instruments                         -             -     N/A
     Equity in earnings of equity method
      investees                                    359           126    185%
     Interest expense, net                     (30,651)      (31,889)    -4%
      Income before income taxes               151,395       129,432     17%
     Provision for income taxes                (54,502)      (46,592)    17%
      Net income                                96,893        82,840     17%
     Dividends on preferred stock               (2,451)       (2,450)     0%
      Income available to common stockholders  $94,442       $80,390     17%


     Earnings per common share:
      Basic - Class A Common Stock               $0.88         $0.77     14%
      Basic - Class B Common Stock               $0.80         $0.70     14%
      Diluted                                    $0.83         $0.73     14%

     Weighted average common shares outstanding:
      Basic - Class A Common Stock              96,012        93,255      3%
      Basic - Class B Common Stock              11,997        12,068     -1%
      Diluted                                  116,726       114,196      2%

     Segment Information:
     Net sales:
      Constellation Wines
       Branded wine                           $509,520      $460,805     11%
       Wholesale and other                     264,324       219,740     20%
        Net sales                             $773,844      $680,545     14%
      Constellation Beers and Spirits
       Imported beers                         $225,846      $229,538     -2%
       Spirits                                  86,021        77,165     11%
        Net sales                             $311,867      $306,703      2%
     Consolidated net sales                 $1,085,711      $987,248     10%

     Operating income:
      Constellation Wines                     $127,700      $112,772     13%
      Constellation Beers and Spirits           71,360        72,228     -1%
      Corporate Operations and Other           (13,839)      (10,669)    30%
      Restructuring and related charges
      and unusual costs (a)                     (3,534)      (13,136)   -73%
     Consolidated operating income            $181,687      $161,195     13%


     (a) Restructuring and related charges and unusual costs for Third
         Quarter 2005 include restructuring and related charges of $1,644, and
         the flow through of inventory step-up associated with the Hardy
         acquisition of $1,890. Restructuring and related charges and unusual
         costs for Third Quarter 2004 include the flow through of inventory
         step-up associated with the Hardy acquisition of $2,720, financing
         costs of $2,328 and restructuring and related charges of $8,088.


                   CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                               ON A REPORTED BASIS
                      (in thousands, except per share data)

                                          For the Nine  For the Nine
                                          Months Ended  Months Ended   Percent
                                          November 30,  November 30,    Change
                                               2004          2003
     Sales                                  $3,834,988    $3,354,298      14%
     Excise taxes                             (785,031)     (683,184)     15%
      Net sales                              3,049,957     2,671,114      14%
     Cost of product sold                   (2,196,148)   (1,938,881)     13%
      Gross profit                             853,809       732,233      17%
     Selling, general and administrative
      expenses                                (401,116)     (348,428)     15%
     Restructuring and related charges          (4,426)      (27,487)    -84%
      Operating income                         448,267       356,318      26%
     Gain on change in fair value of
      derivative instruments                         -         1,181    -100%
     Equity in earnings of equity method
      investees                                    621           965     -36%
     Interest expense, net                     (91,332)     (112,230)    -19%
      Income before income taxes               357,556       246,234      45%
     Provision for income taxes               (128,720)      (88,641)     45%
      Net income                               228,836       157,593      45%
     Dividends on preferred stock               (7,353)       (3,294)    123%
      Income available to common stockholders $221,483      $154,299      44%


     Earnings per common share:
      Basic - Class A Common Stock               $2.08         $1.58      32%
      Basic - Class B Common Stock               $1.89         $1.43      32%
      Diluted                                    $1.97         $1.51      30%

     Weighted average common shares outstanding:
      Basic - Class A Common Stock              95,392        86,832      10%
      Basic - Class B Common Stock              12,035        12,070       0%
      Diluted                                  116,005       104,559      11%

     Segment Information:
     Net sales:
      Constellation Wines
       Branded wine                         $1,286,966    $1,155,170      11%
       Wholesale and other                     769,720       611,854      26%
        Net sales                           $2,056,686    $1,767,024      16%
      Constellation Beers and Spirits
       Imported beers                         $751,879      $684,216      10%
       Spirits                                 241,392       219,874      10%
        Net sales                             $993,271      $904,090      10%
     Consolidated net sales                 $3,049,957    $2,671,114      14%

     Operating income:
      Constellation Wines                     $283,104      $258,208      10%
      Constellation Beers and Spirits          223,023       202,228      10%
      Corporate Operations and Other           (38,964)      (30,978)     26%
      Restructuring and related charges
      and unusual costs (a)                    (18,896)      (73,140)    -74%
     Consolidated operating income            $448,267      $356,318      26%

     (a) Restructuring and related charges and unusual costs for Nine Months
         2005 include financing costs of $10,313, restructuring and related
         charges of $4,426, and the flow through of inventory step-up
         associated with the Hardy acquisition of $4,157.  Restructuring and
         related charges and unusual     costs for Nine Months 2004 include
         the flow through of inventory step-up associated with the Hardy
         acquisition of $17,254, financing costs of $11,572 and restructuring
         and related charges of $44,314.


                   CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (in thousands)

                                           For the Nine        For the Nine
                                           Months Ended        Months Ended
                                         November 30, 2004   November 30, 2003

     CASH FLOWS FROM OPERATING ACTIVITIES:
      Net income                               $228,836            $157,593

      Adjustments to reconcile net income
       to net cash used in operating activities:
        Depreciation of property, plant and
         equipment                               65,121              58,666
        Deferred tax provision                   33,524               4,622
        Amortization of intangible and other
         assets                                   8,491              18,713
        Loss on disposal of assets                4,225               2,108
        Noncash portion of loss on
         extinguishment of debt                   1,799                 800
        Stock-based compensation expense             69                 208
        Amortization of discount on long-term debt   53                  59
        Equity in earnings of equity method
         investees                                 (621)               (965)
        Gain on change in fair value of derivative
         instruments                                  -              (1,181)
        Change in operating assets and liabilities,
         net of effects from purchases of
         businesses:
          Accounts receivable, net             (258,052)           (218,730)
          Inventories                          (189,406)             32,305
          Prepaid expenses and other current
      assets                                     (3,400)             13,417
          Accounts payable                      108,358              23,615
          Accrued excise taxes                   24,103              23,845
          Other accrued expenses and liabilities 59,966              39,989
          Other, net                             (1,644)             24,458
           Total adjustments                   (147,414)             21,929
           Net cash provided by operating
            activities                           81,422             179,522

    CASH FLOWS FROM INVESTING ACTIVITIES:
     Purchases of property, plant and
      equipment                                 (78,356)            (70,584)
     Purchases of businesses, net of cash
      acquired                                   (8,899)         (1,070,074)
     Payment of accrued earn-out amount          (2,617)             (2,035)
     Proceeds from sale of assets                 1,225              11,085
     Proceeds from sale of business                  -                4,431
     Proceeds from sale of marketable
      equity securities                              -                  790
     Net cash used in investing
      activities                               (88,647)          (1,126,387)

    CASH FLOWS FROM FINANCING ACTIVITIES:
     Principal payments of long-term debt     (254,606)          (1,240,395)
     Payment of preferred stock dividends       (7,353)                   -
     Payment of issuance costs of long-
      term debt                                   (901)             (34,147)
     Net proceeds from notes payable           219,953              165,209
     Exercise of employee stock options         25,257               23,756
     Proceeds from employee stock purchases      2,441                1,822
     Proceeds from issuance of long-term debt        -            1,600,000
     Proceeds from equity offerings, net of fees     -              426,069
     Net cash (used in) provided by financing
      activities                               (15,209)             942,314

     Effect of exchange rate changes on
      cash and cash investments                 (1,948)              29,116

     NET (DECREASE) INCREASE IN CASH AND
      CASH INVESTMENTS                         (24,382)              24,565
     CASH AND CASH INVESTMENTS, beginning
      of period                                 37,136               13,810
     CASH AND CASH INVESTMENTS, end of period  $12,754              $38,375


     RECONCILIATION OF REPORTED AND COMPARABLE HISTORICAL INFORMATION
     (in thousands, except per share data)

     Comparable measures are provided because management uses this
     information in evaluating the results of the continuing operations of
     the Company and 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.  As such, an increase in cost of goods sold
     resulting from the flow through of inventory step-up associated with
     acquisitions, the imputed interest charge associated with the Hardy
     acquisition, financing costs, restructuring, integration and related
     charges (including exiting the U.S. commodity concentrate product line),
     gains on changes in fair value of derivative instruments, and the relief
     from certain excise tax, duty and other costs incurred in prior years
     are excluded from comparable results.  You may also visit the Company's
     website at http://www.cbrands.com under Investors/Financial
     Information/Financial Reports for a historical reconciliation between
     reported and comparable information.

                                 For the Three          For the Three
                                  Months Ended           Months Ended
                                  November 30,           November 30,
                                       2004      Margin      2003      Margin

    Reported net sales             $1,085,711    100.0%    $987,248    100.0%

    Reported gross profit            $313,664     28.9%    $282,616     28.6%
     Inventory step-up                  1,890      0.2%       2,720      0.3%
     Concentrate inventory write-down       -      0.0%           -      0.0%
    Comparable gross profit          $315,554     29.1%    $285,336     28.9%

    Reported operating income        $181,687     16.7%    $161,195     16.3%
     Financing costs                        -      0.0%       2,328      0.2%
     Restructuring and related charges  1,644      0.2%       8,088      0.8%
     Inventory step-up                  1,890      0.2%       2,720      0.3%
     Concentrate inventory write-down       -      0.0%           -      0.0%
    Comparable operating income      $185,221     17.1%    $174,331     17.7%

    Reported net income               $96,893      8.9%     $82,840      8.4%
     Financing costs                        -      0.0%       1,489      0.2%
     Restructuring and related charges  1,052      0.1%       5,175      0.5%
     Inventory step-up                  1,210      0.1%       1,740      0.2%
     Concentrate inventory write-down       -      0.0%           -      0.0%
     Imputed interest charge                -      0.0%           -      0.0%
     Gain on derivative instruments         -      0.0%           -      0.0%
    Comparable net income             $99,155      9.1%     $91,244      9.2%

    Reported diluted earnings per share $0.83                 $0.73
     Financing costs                        -                  0.01
     Restructuring and related charges   0.01                  0.05
     Inventory step-up                   0.01                  0.02
     Concentrate inventory write-down       -                     -
     Imputed interest charge                -                     -
     Gain on derivative instruments         -                     -
    Comparable diluted earnings
     per share (1)                      $0.85                 $0.80


                                      For the Nine        For the Nine
                                      Months Ended        Months Ended
                                      November 30,        November 30,
                                          2004     Margin     2003     Margin

    Reported net sales                 $3,049,957  100.0%  $2,671,114  100.0%

    Reported gross profit                $853,809   28.0%    $732,233   27.4%
     Inventory step-up                      4,157    0.1%      17,254    0.6%
     Concentrate inventory write-down           -    0.0%      16,827    0.6%
    Comparable gross profit              $857,966   28.1%    $766,314   28.7%

    Reported operating income            $448,267   14.7%    $356,318   13.3%
     Financing costs                       10,313    0.3%      11,572    0.4%
     Restructuring and related charges      4,426    0.1%      27,487    1.0%
     Inventory step-up                      4,157    0.1%      17,254    0.6%
     Concentrate inventory write-down           -    0.0%      16,827    0.6%
    Comparable operating income          $467,163   15.3%    $429,458   16.1%

    Reported net income                  $228,836    7.5%    $157,593    5.9%
     Financing costs                        6,600    0.2%       7,405    0.3%
     Restructuring and related charges      2,833    0.1%      17,591    0.7%
     Inventory step-up                      2,660    0.1%      11,042    0.4%
     Concentrate inventory write-down           -    0.0%      10,769    0.4%
     Imputed interest charge                    -    0.0%       1,061    0.0%
     Gain on derivative instruments             -    0.0%        (756)   0.0%
     Comparable net income               $240,929    7.9%    $204,705    7.7%

    Reported diluted earnings per share     $1.97               $1.51
    Financing costs                          0.06                0.07
    Restructuring and related charges        0.02                0.17
    Inventory step-up                        0.02                0.11
    Concentrate inventory write-down            -                0.10
    Imputed interest charge                     -                0.01
    Gain on derivative instruments              -               (0.01)
    Comparable diluted earnings per
     share (1)                              $2.08               $1.96


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


     RECONCILIATION OF REPORTED AND COMPARABLE DILUTED EARNINGS PER SHARE
     GUIDANCE

                                          Range for the        Range for the
                                          Quarter Ending        Year Ending
                                            February 28,        February 28,
                                                2005                2005

    Forecasted reported diluted earnings
     per share                             $0.31     $0.36      $2.29   $2.34
     Inventory step-up                      0.05      0.05       0.07    0.07
     Financing costs                        0.12      0.12       0.18    0.18
    Restructuring, integration and
     related charges                        0.06      0.06       0.08    0.08
    Forecasted comparable diluted
     earnings per share                    $0.54     $0.59      $2.62   $2.67


                                             Actual               Actual
                                         For the Three      For the Year Ended
                                          Months Ended       February 29, 2004
                                        February 29, 2004

    Reported diluted earnings per share      $0.55                 $2.06
     Excise tax, duty and other costs        (0.06)                (0.06)
     Inventory step-up                        0.03                  0.13
     Concentrate inventory write-down            -                  0.10
     Financing costs                             -                  0.07
     Restructuring and related charges        0.02                  0.19
     Imputed interest charge                     -                  0.01
     Gain on derivative instruments              -                 (0.01)
    Comparable diluted earnings per share(1) $0.54                 $2.49


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


                                                               Range for the
                                                                 Year Ending
                                                                February 28,
                                                                    2006

    Forecasted reported diluted earnings
     per share                                                 $2.77    $2.92
    Inventory step-up                                           0.21     0.21
    Restructuring and integration charges                       0.07     0.07
    Forecasted comparable diluted earnings per share           $3.05    $3.20

ATTACHMENTS TO CONSTELLATION BRANDS THIRD QUARTER FISCAL 2005 MEDIA RELEASE
ITEMS AFFECTING COMPARABILITY FOR FISCAL 2005

Financing costs - On Feb. 10, 2004, the company called its $200,000,000 8.5% senior subordinated notes due 2009 which were redeemed March 2004. In connection with this redemption, the company incurred an unusual charge of $0.06 in the first quarter of fiscal 2005 related to the call premium and the remaining unamortized financing fees associated with the original issuance of the bonds. On Dec. 22, 2004, the company entered into a new $2.9 billion credit agreement, proceeds of which were used to fund the acquisition of Robert Mondavi, pay certain obligations of Robert Mondavi and to repay the outstanding balance on Constellation's prior credit agreement. The company expects to record an unusual charge of $0.12 per share in the fourth quarter of fiscal 2005 for the write-off of bank fees related to the repayment of the company's prior credit agreement. The company expects total charges of $0.18 per share for financing costs in fiscal 2005.

Restructuring, integration and related charges - As previously announced, in connection with the further realignment of business operations within the company's wines segment, the company expects restructuring and related charges of approximately $0.01 per share in the fourth quarter of fiscal 2005 and $0.03 per share for fiscal 2005. As a result of the Robert Mondavi acquisition, the company expects restructuring and integration charges of approximately $0.05 in the fourth quarter of fiscal 2005. The company expects total restructuring, integration and related charges of $0.08 per share for fiscal 2005.

Inventory step-up - The allocation of purchase price in excess of book value for certain inventory on hand at the date of acquisition is referred to as inventory step-up. Inventory step-up represents an assumed manufacturing profit attributable to the acquired company prior to acquisition. For inventory produced and sold after the acquisition date, the related manufacturer's profit accrues to the company. As a result of final appraisals, the company expects the flow through of inventory step-up of the Hardy acquisition to have a negative impact of approximately $0.01 per share in the fourth quarter of fiscal 2005 and $0.03 per share for fiscal 2005. In connection with the Robert Mondavi acquisition, the company estimates the impact of inventory step-up to be approximately $0.04 per share for the fourth quarter of fiscal 2005. The total impact of the flow through of inventory step-up is expected to be $0.07 per share for fiscal 2005.

ITEMS AFFECTING COMPARABILITY FOR FISCAL 2004

Excise tax, duty and other costs - In the fourth quarter of fiscal 2004, the company recognized a net benefit of $10.4 million related to relief from certain excise taxes, duty and other costs incurred in prior years. The net $10.4 million is comprised of a $9.2 million increase in net sales, a $2.3 million reduction in cost of product sold and a $1.1 million increase in SG&A. This had a positive impact of approximately $0.06 per share for fiscal 2004. Inventory step-up - The flow through of inventory step-up had an impact of approximately $0.13 per share for fiscal 2004.

Concentrate inventory write-down - The company made a decision to exit the U.S. commodity concentrate product line - located in Madera, California. The commodity concentrate product line was facing declining sales and profits and was not part of the company's core business, beverage alcohol. The company continues to produce and sell value-added, proprietary products such as MegaColors. The charge for the write-down of concentrate inventory was $0.10 per share for fiscal 2004. In addition, and related to exiting this product line, the company expects to record restructuring and related charges of approximately $0.17 per share, of which $0.14 was recorded in fiscal 2004 and $0.03 will be recorded in fiscal 2005.

Financing costs - Hardy acquisition - In connection with the Hardy acquisition, the company recorded amortization expense for deferred financing costs associated with noncontinuing financing, primarily related to the bridge loan agreement. This charge was $0.07 per share for fiscal 2004.

Restructuring and related charges - Restructuring and related charges resulted from the realignment of business operations in the company's wines segment, as previously announced in the fourth quarter of fiscal 2003, and exiting the commodity concentrate product line. The company incurred total charges of approximately $0.19 per share for fiscal 2004 ($0.05 for realignment of businesses and $0.14 for exiting the commodity concentrate product line). Imputed interest charge - In connection with the Hardy acquisition and in accordance with purchase accounting, the company was required to take a one- time imputed interest charge for the time period between when the company obtained control of Hardy and the date it paid Hardy shareholders. The company incurred a charge of $0.01 per share for fiscal 2004.

Gain on change in fair value of derivative instruments - In connection with the Hardy acquisition, the company entered into derivative instruments to cap the cost of the acquisition in U.S. dollars. The company recorded a gain in the first quarter, which represented the net change in value of the derivative instruments from the beginning of the first quarter until the date Hardy shareholders were paid. The company recorded a gain of $0.01 per share for fiscal 2004.

ITEMS AFFECTING COMPARABILITY FOR FISCAL 2006

Restructuring and integration charges - The company estimates restructuring and integration charges associated with the Robert Mondavi acquisition to be $0.07 per share for fiscal 2006.

Inventory step-up - The impact of flow through of inventory step-up related primarily to the Robert Mondavi acquisition is estimated to be approximately $0.21 per share in fiscal 2006.

CONTACT:
Media Relations:
Philippa Dworkin
585-218-3733

Mike Martin
585-218-3669

Investor Relations:
Lisa Schnorr
585-218-3677

Bob Czudak
585-218-3668
All of Constellation Brands, Inc.