- Generates record free cash flow for fiscal 2008; company expects strong free cash flow for fiscal 2009 - Premium wine and spirits portfolios enhanced by acquisitions, sale of value wine brands - Non-cash impairment charges reduce reported fiscal 2008 results - Company provides fiscal 2009 outlook; projects comparable basis diluted EPS of $1.68 - $1.76 versus $1.44 for fiscal 2008

FAIRPORT, N.Y., April 3, 2008 /PRNewswire-FirstCall/ -- Constellation Brands, Inc. (NYSE: STZ, ASX: CBR), a leading international producer and marketer of beverage alcohol today reported its fiscal 2008 financial results and fiscal 2009 outlook. "For fiscal 2008, we achieved our strategic initiatives and exceeded our key financial goals," stated Rob Sands, Constellation Brands president and chief executive officer. "These include the premiumization of brand portfolios, including the acquisition of SVEDKA Vodka and the Fortune Brands U.S. premium wine portfolio and the sale of the Almaden and Inglenook value wine brands, successful implementation of the Crown Imports transition, reduction of U.S. distributor wine inventory and creation of a strategic joint venture for the company's U.K. wholesale business.

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

"We exceeded our comparable earnings per share estimate for the year and generated record free cash flow of $376 million, which also exceeded our forecast," added Sands. "I am confident in our ability to continue to execute our strategy, profitably grow our business and generate strong cash flow."

On a reported basis the company incurred a net loss of $610 million, or $2.82 diluted loss per share for the fiscal year ended Feb. 29, 2008 ("fiscal 2008"), compared to net income of $332 million, or $1.38 diluted earnings per share ("EPS") for the prior year. The net loss was driven by an estimated $822 million of impairment charges primarily related to goodwill and intangible assets associated with the company's Australia and U.K. businesses and a $52 million deferred tax asset valuation allowance. "These are non-cash, non-recurring charges to earnings and do not impact the company's free cash flow, debt covenants or future operations," said Bob Ryder, Constellation Brands chief financial officer.

Fiscal 2008 net income on a comparable basis, which excludes acquisition- related integration costs, restructuring charges and unusual items, totaled $321 million, or $1.44 diluted EPS versus comparable basis net income of $403 million and diluted EPS of $1.68 for the prior year.



 Fiscal 2008 Net Sales Highlights*
 (in millions)
 Reported Organic
 Constant Constant
 Net Currency Net Currency
 Sales Change Change Sales Change Change

 Consolidated $3,773 -28% -30% $3,570 5% 1%
 Branded Wine $3,017 9% 6% $2,877 2% -2%
 Imported Beers - -100% -100%
 Spirits $414 26% 26% $359 9% 9%
 Wholesale/other $342 -69% -71% $335 23% 14%



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

 Reported Change Comparable Change
 Operating (loss)/
 income ($352) NM $545 -35%
 Equity in earnings of
 equity method investees** $258 417% $274 420%
 Earnings before interest
 and taxes (EBIT) - - $819 -9%
 Net (loss)/income ($610) NM $321 -20%
 Diluted (loss)/
 earnings per share ($2.82) NM $1.44 -14%

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



 Fiscal 2008 Net Sales Commentary

The reported consolidated net sales decrease of 28 percent primarily reflects the impact of reporting the Crown Imports and Matthew Clark wholesale business joint ventures under the equity method and U.S. distributor wine inventory reduction, partially offset by the benefits of the Vincor, SVEDKA and Fortune Brands U.S. premium wine business acquisitions and favorable foreign currency. Organic net sales increased one percent on a constant currency basis.

Branded wine net sales decreased two percent on an organic constant currency basis. For North America, branded wine net sales decreased three percent on an organic constant currency basis, reflecting solid growth in Canada, which was more than offset by the company's initiative to reduce U.S. wine distributor inventory levels during the first half of fiscal 2008.

"The North American wine market remains healthy, with consumers continuing the trend of trading up to premium wines such as Clos du Bois and Wild Horse, which we added to our leading premium portfolio that includes consumer favorites such as Simi, Ravenswood, Blackstone, Kim Crawford, and Toasted Head in the U.S., and Jackson-Triggs and Inniskillin in Canada," explained Sands. "These brands all delivered positive sales and marketplace growth for the year."

Organic net sales for branded wine in 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 decreased two percent.

Total spirits net sales increased 26 percent, primarily due to the March 2007 acquisition of SVEDKA and nine percent growth in organic net sales reflecting higher average selling prices and an increase in production services.

"SVEDKA continues delivering phenomenal sales performance and remains the fastest growing major imported premium vodka brand in the U.S.," said Sands. "We are also very pleased with the marketplace growth generated by other premium spirits in our portfolio, including Effen Vodka, the 99 Schnapps line, Ridgemont Reserve 1792 bourbon and Black Velvet Canadian Whisky."

Fiscal 2008 Operating Income, Net Income, Diluted EPS Commentary

The decrease in comparable operating income and the increase in equity earnings for fiscal 2008 were primarily due to the impact of reporting $255 million of equity earnings from the Crown Imports joint venture under the equity method for the entire 12 months in fiscal 2008, compared to $39 million in equity earnings for the two months of Crown Imports operations in fiscal 2007.

Wines segment operating income decreased $72 million versus the prior year. This was primarily due to the lower net sales associated with efforts to reduce distributor inventories in the U.S., the impact of the U.K. and Australia business performance, and higher stock compensation expense, which was partially offset by an increased contribution from the Canadian wine business. Spirits segment operating income increased $7 million primarily due to the addition of SVEDKA and from the increase in base business net sales, offset somewhat by higher material costs.

For fiscal 2008, pre-tax acquisition-related integration costs, restructuring and related charges and unusual items totaled $913 million, compared to $91 million for the prior year. During the fourth quarter of fiscal 2008, the company recorded an estimated $822 million of non-cash impairment charges primarily related to goodwill and intangible asset impairments associated with the company's Australia and U.K. businesses in connection with the company's annual impairment testing and a $52 million deferred tax asset valuation allowance. As previously discussed by the company, operating results for these businesses have been impacted by pricing pressures driven by the strength of large grocery retailers, Australian wine over-supply and U.K. duty increases. Due to these competitive pressures, the company's profitability in the U.K. and Australia businesses has decreased over the past few years. U.S. GAAP has required the company to recognize impairment charges resulting from the impact of these competitive pressures on prospective operating results.

"The U.K. is one of the world's largest import wine markets and wine consumption trends remain robust, while Australia is one of the largest and most progressive producers and exporters of high quality New World Wines," stated Sands. "We believe in the long-term value of both of these businesses, and are confident we are taking the right measures to improve operating efficiencies and our competitive position in these strategically important markets. We plan to improve operating results in fiscal 2009 and beyond."

Financial results were also impacted by interest expense, which increased 27 percent to $342 million for fiscal 2008, primarily due to the financing of the Vincor, SVEDKA and Fortune Brands U.S. wine business acquisitions, and $500 million of share repurchases. Comparable basis net income for fiscal 2008 reflected an effective tax rate of 32.6 percent versus 35.6 percent for the prior year, primarily due to favorable foreign tax rate changes.

The company generated record free cash flow of $376 million versus $121 million in the prior year. The increase in free cash flow was primarily driven by reduced working capital investment, including reduced tax payments, and lower capital spending. The company expects the strong free cash flow generation to continue and is targeting free cash flow in the range of $310 - $340 million for fiscal 2009. "Fiscal 2008 demonstrated our increased focus on free cash flow management and we expect another strong year of cash generation in fiscal 2009," said Ryder.



 Fourth Quarter Fiscal 2008 Net Sales Highlights
 (in millions)
 Reported Organic

 Constant Constant
 Net Currency Net Currency
 Sales Change Change Sales Change Change

 Consolidated $884 -23% -25% $856 3% -
 Branded Wine $747 6% 2% $733 2% -2%
 Imported Beers - -100% -100%
 Spirits $95 31% 31% $80 10% 10%
 Wholesale/other $43 -84% -85% $43 24% 18%



 Fourth Quarter Fiscal 2008 Profit Highlights
 (in millions, except per share data)

 Reported Change Comparable Change

 Operating (loss)/income ($735) NM $137 -15%
 Equity earnings $28 -29% $43 9%
 Earnings before interest
 and taxes (EBIT) - - $180 -10%
 Net (loss)/income ($832) NM $74 -13%
 Diluted (loss)/earnings
 per share ($3.90) NM $0.34 -3%



 Fourth Quarter Fiscal 2008 Net Sales Commentary

The reported consolidated net sales decrease of 23 percent primarily reflects the impact of reporting the Crown Imports and Matthew Clark wholesale business joint ventures under the equity method. The impact of the joint venture reporting was partially offset by the benefits of favorable foreign currency and the SVEDKA and Fortune Brands U.S. wine business acquisitions.

Branded wine net sales decreased two percent on an organic constant currency basis. For North America, branded wine net sales decreased five percent on an organic constant currency basis, as the completion of the reduction in U.S. wine distributor inventories earlier in the year resulted in a timing shift for the company's U.S. wine sales. Under new shipment patterns, and after the peak holiday selling period in the third quarter, the company returned to the lower distributor inventory levels achieved at the end of the second quarter, which negatively impacted growth in the fourth quarter.

Branded wine organic net sales on a constant currency basis for Europe and Australia/New Zealand increased four percent and eight percent, respectively.

Total spirits net sales increased 31 percent for the quarter, primarily due to the SVEDKA acquisition and 10 percent growth in organic net sales.

Fourth Quarter Fiscal 2008 Operating Income, Net Income, Diluted EPS Commentary

Wines segment operating income decreased $10 million versus the prior year, while spirits segment operating income increased $1 million.

Pre-tax acquisition-related integration costs, restructuring and related charges and unusual items totaled $888 million, which included the non-cash impairment charges discussed earlier, compared to $23 million for the prior year. Interest expense increased 25 percent to $93 million for fourth quarter 2008, primarily due to the financing of the SVEDKA and Fortune Brands U.S. wine business acquisitions and $500 million of share repurchases.

Outlook

The table below sets forth management's current diluted earnings per share expectations for fiscal year 2009 compared to fiscal year 2008 actual results, both on a reported basis and a comparable basis.

"The expected improvement in comparable earnings for fiscal 2009 includes solid underlying growth of our North America branded wine business and the Crown Imports joint venture, the benefit of completing the reduction in U.S. distributor inventories during fiscal 2008 and anticipated performance improvement for the company's U.K. and Australia branded wine businesses," said Sands.



 Constellation Brands Fiscal Year 2009
 Diluted Earnings Per Share Outlook

 Reported Basis Comparable Basis
 FY09 FY08 FY09 FY08
 Estimate Actual Estimate Actual
 Fiscal Year Ending
 Feb. 28 or Feb. 29 $1.46 - $1.54 ($2.82) $1.68 - $1.76 $1.44



 Full-year fiscal 2009 guidance includes the following current assumptions:
 -- Net sales: high single-digit growth in organic net sales combined with
 the incremental benefit from the Fortune Brands U.S. premium wine
 acquisition, impact of reporting the joint venture for the Matthew
 Clark wholesale business under the equity method, and divestiture of
 the Almaden and Inglenook brands, are expected to result in reported
 net sales increasing mid single-digits from net sales for fiscal 2008
 -- Interest expense: approximately $340 - $350 million
 -- Tax rate: approximately 37 percent
 -- Weighted average diluted shares outstanding: approximately 222 million
 -- Free cash flow: $310 - $340 million


 Conference Call

A conference call to discuss fiscal 2008 results and outlook for fiscal 2009 will be hosted by President and Chief Executive Officer Rob Sands and Executive Vice President and Chief Financial Officer Bob Ryder on Thursday, April 3, 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, sales in about 150 countries, operates approximately 60 facilities worldwide. It is also the largest wine producer in the world and an S&P 500 Index and Fortune 500(R) company. Major brands in the company's portfolio include Corona, Black Velvet, SVEDKA Vodka, Robert Mondavi, Clos du Bois, Ravenswood, Blackstone, Hardys, Banrock Station, Nobilo, Kim Crawford, Inniskillin, Jackson-Triggs and Arbor Mist. To learn more about the company and its products visit Constellation'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, or 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 May 23, 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. During Constellation's "quiet period" the Projections should not be considered to constitute the company's expectations and should be considered historical, speaking as of prior to the quiet period only and not subject to update by the company.

The 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. The Projections 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:

 -- successful integration of acquired businesses, realization of expected
 synergies and completion of various portfolio actions;
 -- achievement of all expected cost savings from the company's various
 restructuring plans and realization of expected asset sale proceeds;
 -- accuracy of the bases for forecasts relating to joint ventures and
 associated costs and capital investment requirements;
 -- 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 company's acquisitions
 and from estimates of goodwill and intangible asset impairment charges;
 -- restructuring and related charges, acquisition-related integration
 costs and purchase accounting adjustments associated with integration
 and restructuring plans may vary materially from management's current
 estimates due to variations in one or more of anticipated headcount
 reductions, contract terminations, costs or timing of plan
 implementation;
 -- 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 expenses;
 -- general economic, geo-political and regulatory conditions or
 unanticipated environmental liabilities and costs;
 -- changes to accounting rules and tax laws, and other factors which could
 impact the company's reported financial position or effective tax rate;
 -- changes in interest rates and the inherent unpredictability of currency
 fluctuations, commodity prices and raw material costs; and
 -- other factors and uncertainties disclosed 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.



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

 February 29, February 28,
 2008 2007
 Assets

 Current Assets:
 Cash and cash investments $20.5 $33.5
 Accounts receivable, net 731.6 881.0
 Inventories 2,179.5 1,948.1
 Prepaid expenses and other 217.2 160.7

 Total current assets 3,148.8 3,023.3

 Property, plant and equipment, net 2,035.0 1,750.2
 Goodwill 3,121.0 3,083.9
 Intangible assets, net 1,198.0 1,135.4
 Other assets, net 504.9 445.4

 Total assets $10,007.7 $9,438.2

 Liabilities and Stockholders' Equity

 Current Liabilities:
 Notes payable to banks $379.5 $153.3
 Current maturities of long-term debt 229.3 317.3
 Accounts payable 349.4 376.1
 Accrued excise taxes 62.4 73.7
 Other accrued expenses and liabilities 697.7 670.7

 Total current liabilities 1,718.3 1,591.1

 Long-term debt, less current maturities 4,648.7 3,714.9
 Deferred income taxes 538.0 474.1
 Other liabilities 333.9 240.6

 Total liabilities 7,238.9 6,020.7

 Total stockholders' equity 2,768.8 3,417.5

 Total liabilities and stockholders'
 equity $10,007.7 $9,438.2



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

 Three Months Ended Year Ended
 February February February February
 29, 2008 28, 2007 29, 2008 28, 2007

 Sales $1,135.4 $1,422.5 $4,885.1 $6,401.8
 Excise taxes (251.0) (280.3) (1,112.1) (1,185.4)
 Net sales 884.4 1,142.2 3,773.0 5,216.4

 Cost of product sold (572.7) (796.9) (2,491.5) (3,692.5)
 Gross profit 311.7 345.3 1,281.5 1,523.9

 Selling, general and
 administrative expenses (227.1) (194.0) (807.3) (768.8)
 Impairment of goodwill and
 intangible assets (807.1) - (807.1) -
 Acquisition-related integration
 costs (6.6) (6.0) (11.8) (23.6)
 Restructuring and related charges (6.2) (6.4) (6.9) (32.5)
 Operating (loss) income (735.3) 138.9 (351.6) 699.0

 Equity in earnings of equity
 method investees 27.8 39.2 257.9 49.9
 Interest expense, net (93.0) (74.4) (341.8) (268.7)
 Gain on change in fair value of
 derivative instrument - - - 55.1
 (Loss) income before income taxes (800.5) 103.7 (435.5) 535.3

 Provision for income taxes (31.4) (33.5) (174.9) (203.4)
 Net (loss) income (831.9) 70.2 (610.4) 331.9

 Dividends on preferred stock - - - (4.9)
 (Loss) income available to
 common stockholders $(831.9) $70.2 $(610.4) $327.0


 (Loss) Earnings Per Common Share:
 Basic - Class A Common Stock $(3.90) $0.30 $(2.82) $1.44
 Basic - Class B Common Stock $(3.54) $0.27 $(2.56) $1.31

 Diluted - Class A Common Stock $(3.90) $0.29 $(2.82) $1.38
 Diluted - Class B Common Stock $(3.54) $0.27 $(2.56) $1.27

 Weighted Average Common Shares
 Outstanding:
 Basic - Class A Common Stock 191.946 210.624 195.135 204.966
 Basic - Class B Common Stock 23.794 23.828 23.812 23.840

 Diluted - Class A Common Stock 191.946 239.566 195.135 239.772
 Diluted - Class B Common Stock 23.794 23.828 23.812 23.840



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

 Year Ended
 February 29, February 28,
 2008 2007
 Cash Flows From Operating Activities
 Net (loss) income $(610.4) $331.9
 Adjustments to reconcile net (loss)
 income to net cash provided by
 operating activities:
 Impairment of goodwill and
 intangible assets 807.1 -
 Depreciation of property, plant and
 equipment 154.7 131.7
 Deferred tax provision 100.2 52.7
 Loss on disposal of business 34.6 16.9
 Stock-based compensation expense 32.0 16.5
 Equity in earnings of equity method
 investees, net 20.7 (41.0)
 Amortization of intangible and other
 assets 11.2 7.6
 Loss on disposal or impairment of
 long-lived assets, net 1.8 12.5
 Noncash portion of loss on
 extinguishment of debt - 11.8
 Gain on change in fair value of
 derivative instruments - (55.1)
 Change in operating assets and
 liabilities, net of effects
 from purchases and sales of
 businesses:
 Accounts receivable, net 56.2 (6.3)
 Inventories (37.8) (85.1)
 Prepaid expenses and other current
 assets (5.8) 44.3
 Accounts payable 16.3 34.3
 Accrued excise taxes 2.4 1.0
 Other accrued expenses and
 liabilities (34.2) (157.2)
 Other, net (29.2) (3.3)
 Total adjustments 1,130.2 (18.7)
 Net cash provided by operating
 activities 519.8 313.2

 Cash Flows From Investing Activities
 Purchases of businesses, net of cash
 acquired (1,302.0) (1,093.7)
 Purchases of property, plant and
 equipment (143.8) (192.0)
 Investment in equity method investee (4.6) -
 Payment of accrued earn-out amount (4.0) (3.6)
 Proceeds from formation of joint venture 185.6 -
 Proceeds from sales of businesses 136.5 28.4
 Proceeds from sales of assets 19.4 9.8
 Proceeds from maturity of derivative
 instrument - 55.1
 Other investing activities - (1.1)
 Net cash used in investing
 activities (1,112.9) (1,197.1)

 Cash Flows From Financing Activities
 Proceeds from issuance of long-term debt 1,212.9 3,705.4
 Net proceeds from notes payable 219.4 47.1
 Exercise of employee stock options 20.6 63.4
 Excess tax benefits from stock-based
 payment awards 11.3 21.4
 Proceeds from employee stock purchases 6.2 5.9
 Purchases of treasury stock (500.0) (100.0)
 Principal payments of long-term debt (374.9) (2,786.9)
 Payment of financing costs of long-
 term debt (10.6) (23.8)
 Payment of preferred stock dividends - (7.3)
 Net cash provided by financing
 activities 584.9 925.2

 Effect of exchange rate changes on
 cash and cash investments (4.8) (18.7)

 Net (decrease) increase in cash and
 cash equivalents (13.0) 22.6
 Cash and cash investments, beginning
 of year 33.5 10.9
 Cash and cash investments, end of year $20.5 $33.5



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

 Three Months Ended Year Ended
 February February Percent February February Percent
 29, 2008 28, 2007 Change 29, 2008 28, 2007 Change

 Segment Net Sales
 and Operating
 Income
 Constellation
 Wines
 Branded wine net
 sales $746.8 $706.1 6% $3,016.9 $2,755.7 9%
 Wholesale and
 other net sales 42.5 273.3 (84%) 341.9 1,087.7 (69%)
 Segment net
 sales $789.3 $979.4 (19%) $3,358.8 $3,843.4 (13%)
 Operating
 income $145.4 $155.6 (7%) $558.4 $629.9 (11%)
 % Net sales 18.4% 15.9% 16.6% 16.4%
 Equity in
 earnings of
 equity method
 investees $1.7 $0.4 NM $18.8 $13.8 NM

 Constellation
 Beers
 Segment net
 sales $- $90.1 (100%) $- $1,043.6 (100%)
 Operating income $- $8.9 (100%) $- $208.1 (100%)
 % Net sales N/A 9.9% N/A 19.9%

 Constellation
 Spirits
 Segment net
 sales $95.1 $72.7 31% $414.2 $329.4 26%
 Operating income $13.9 $13.0 7% $72.0 $65.5 10%
 % Net sales 14.6% 17.9% 17.4% 19.9%

 Crown Imports
 Segment net
 sales $462.5 $368.8 25% $2,391.0 $368.8 NM
 Operating income $82.4 $78.4 5% $509.0 $78.4 NM
 % Net sales 17.8% 21.3% 21.3% 21.3%

 Consolidation and
 Eliminations
 Segment net
 sales $(462.5) $(368.8) 25% $(2,391.0) $(368.8) NM
 Operating income $(82.4) $(78.4) 5% $(509.0) $(78.4) NM
 Equity in
 earnings of
 Crown Imports $41.2 $38.9 6% $255.1 $38.9 NM

 Corporate
 Operations and
 Other
 Consolidated net
 sales $884.4 $1,142.2 (23%) $3,773.0 $5,216.4 (28%)
 Operating income $(22.2) $(16.1) 38% $(85.5) $(60.9) 40%
 % Net sales 2.5% 1.4% 2.3% 1.2%



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

 Constant
 Currency
 Three Months Ended Per Percent
 February February cent Currency Change
 29, 2008 28, 2007 Change Impact (3)
 Geographic Net Sales (1)(2)
 North America $611.1 $673.0 (9%) 2% (11%)
 Branded wine $501.7 $501.4 - 2% (2%)
 Imported beers $- $90.1 (100%) - (100%)
 Spirits $95.1 $72.7 31% - 31%
 Wholesale and other $14.3 $8.8 63% 15% 48%

 Europe $173.7 $385.8 (55%) 1% (56%)
 Branded wine $148.8 $125.8 18% 1% 17%
 Wholesale and other $24.9 $260.0 (90%) - (91%)

 Australia/New Zealand $99.6 $83.4 19% 14% 6%
 Branded wine $96.3 $78.9 22% 14% 8%
 Wholesale and other $3.3 $4.5 (27%) 9% (36%)



 Organic
 Constant
 Currency
 Acquis Divest Per
 Three Months Ended Per ition iture Curr cent
 February February cent Impact Impact ency Change
 29, 2008 28, 2007 Change (4) (5) Impact (3)
 Branded Wine Geographic
 Net Sales (1)(2)
 North America $501.7 $501.4 - 3% - 2% (5%)
 Europe 148.8 125.8 18% - 12% 1% 4%
 Australia/New Zealand 96.3 78.9 22% - - 14% 8%
 Consolidated branded
 wine net sales $746.8 $706.1 6% 2% 2% 3% (2%)



 Constant
 Currency
 Year Ended Per Percent
 February February cent Currency Change
 29, 2008 28, 2007 Change Impact (3)
 Geographic Net Sales (1)(2)
 North America $2,488.2 $3,346.9 (26%) 1% (27%)
 Branded wine $2,005.6 $1,933.2 4% 1% 2%
 Imported beers $- $1,043.6 (100%) - (100%)
 Spirits $414.2 $329.4 26% - 26%
 Wholesale and other $68.4 $40.7 68% 7% 61%

 Europe $885.9 $1,518.8 (42%) 4% (45%)
 Branded wine $637.9 $495.7 29% 8% 21%
 Wholesale and other $248.0 $1,023.1 (76%) 2% (78%)

 Australia/New Zealand $398.9 $350.7 14% 13% 1%
 Branded wine $373.4 $326.8 14% 13% 1%
 Wholesale and other $25.5 $23.9 7% 12% (5%)



 Organic
 Constant
 Currency
 Acquis Divest Per
 Year Ended Per ition iture Curr cent
 February February cent Impact Impact ency Change
 29, 2008 28, 2007 Change (4) (5) Impact (3)
 Branded Wine Geographic
 Net Sales (1)(2)
 North America $2,005.6 $1,933.2 4% 5% - 1% (3%)
 Europe 637.9 495.7 29% 5% 11% 8% 4%
 Australia/New Zealand 373.4 326.8 14% 3% - 13% (2%)
 Consolidated branded
 wine net sales $3,016.9 $2,755.7 9% 5% 2% 4% (2%)

 (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 year ended
 February 29, 2008, and net sales of branded wine acquired in the
 acquisition of Fortune Brands U.S. wine business ("BWE") for the
 period December 17, 2007, through February 29, 2008, included in the
 three months and year ended February 29, 2008.
 (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 year ended February 28, 2007.



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

As the Company acquired Vincor on June 5, 2006, formed its imported beer joint venture on January 2, 2007, acquired Svedka on March 19, 2007, formed its U.K. wholesale joint venture on April 17, 2007, and acquired BWE on December 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, net sales of U.K. wholesale, plus net sales of U.K. branded wine, or net sales of BWE products, 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
 Currency
 Three Months Ended Per Curr Percent
 February February cent ency Change
 29, 2008 28, 2007 Change Impact (1)
 Consolidated Net Sales
 Branded wine $746.8 $706.1 6% 3% 2%
 Wholesale and other 42.5 273.3 (84%) 1% (85%)
 Imported beers - 90.1 (100%) - (100%)
 Spirits 95.1 72.7 31% - 31%
 Consolidated reported net sales 884.4 1,142.2 (23%) 2% (25%)
 Less: Vincor (2) - -
 Less: Imported beers (3) - (90.1)
 Less: Svedka (4) (14.8) -
 Less: U.K. wholesale, net of
 U.K. branded wine (5) - (223.7)
 Less: BWE (6) (13.9) -
 Consolidated organic net sales $855.7 $828.4 3% 3% -


 Branded Wine Net Sales
 Branded wine reported net sales $746.8 $706.1 6% 3% 2%
 Less: Vincor (2) - -
 Plus: U.K. branded wine (5) - 15.3
 Less: BWE (6) (13.9) -
 Branded wine organic net sales $732.9 $721.4 2% 3% (2%)


 Spirits Net Sales
 Spirits reported net sales $95.1 $72.7 31% - 31%
 Less: Svedka (4) (14.8) -
 Spirits organic net sales $80.3 $72.7 10% - 10%


 Wholesale and Other Net Sales
 Wholesale and other reported net
 sales $42.5 $273.3 (84%) 1% (85%)
 Less: Vincor (2) - -
 Less: U.K. wholesale (5) - (239.0)
 Wholesale and other organic
 net sales $42.5 $34.3 24% 6% 18%


 Constant
 Currency
 Year Ended Per Curr Percent
 February February cent ency Change
 29, 2008 28, 2007 Change Impact (1)
 Consolidated Net Sales
 Branded wine $3,016.9 $2,755.7 9% 4% 6%
 Wholesale and other 341.9 1,087.7 (69%) 2% (71%)
 Imported beers - 1,043.6 (100%) - (100%)
 Spirits 414.2 329.4 26% - 26%
 Consolidated reported
 net sales 3,773.0 5,216.4 (28%) 3% (30%)
 Less: Vincor (2) (133.7) -
 Less: Imported beers (3) - (1,043.6)
 Less: Svedka (4) (55.1) -
 Less: U.K. wholesale, net of
 U.K. branded wine (5) - (759.8)
 Less: BWE (6) (13.9) -
 Consolidated organic
 net sales $3,570.3 $3,413.0 5% 4% 1%


 Branded Wine Net Sales
 Branded wine reported
 net sales $3,016.9 $2,755.7 9% 4% 6%
 Less: Vincor (2) (126.3) -
 Plus: U.K. branded wine (5) - 55.7
 Less: BWE (6) (13.9) -
 Branded wine organic
 net sales $2,876.7 $2,811.4 2% 4% (2%)


 Spirits Net Sales
 Spirits reported net sales $414.2 $329.4 26% - 26%
 Less: Svedka (4) (55.1) -
 Spirits organic net sales $359.1 $329.4 9% - 9%


 Wholesale and Other Net Sales
 Wholesale and other reported
 net sales $341.9 $1,087.7 (69%) 2% (71%)
 Less: Vincor (2) (7.4) -
 Less: U.K. wholesale (5) - (815.5)
 Wholesale and other organic
 net sales $334.5 $272.2 23% 9% 14%

 (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
 year ended February 29, 2008.
 (3) For the three months and year ended February 28, 2007.
 (4) For the three months ended February 29, 2008, and for the period March
 19, 2007, through February 29, 2008, included in the year ended
 February 29, 2008.
 (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 February 28, 2007, and for the
 period April 17, 2006, through February 28, 2007, included in the year
 ended February 28, 2007.
 (6) For the period December 17, 2007, through February 29, 2008, included
 in the three months and year ended February 29, 2008.



 Constellation Brands, Inc. and Subsidiaries
 RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES(1)
 (in millions, except per share data)

 Three Months Ended February 29, 2008
 Strategic
 Inven Business Comparable
 Reported tory Realign Basis
 Basis Step ment Other (Non
 (GAAP) -up (2) (3) -GAAP)

 Net Sales $884.4 $884.4
 Cost of product sold (572.7) 3.3 15.3 (554.1)
 Gross Profit 311.7 3.3 15.3 330.3
 Selling, general and
 administrative expenses ("SG&A") (227.1) 28.6 5.3 (193.2)
 Impairment of goodwill and
 intangible assets (807.1) 7.4 799.7 -
 Acquisition-related integration
 costs (6.6) 6.6 -
 Restructuring and related charges (6.2) 6.2 -
 Operating (Loss) Income (735.3) 3.3 64.1 805.0 137.1
 Equity in earnings of equity
 method investees 27.8 15.1 42.9
 EBIT 180.0
 Interest expense, net (93.0) (93.0)
 Gain on change in fair value of
 derivative instrument - -
 (Loss) Income Before Income Taxes (800.5) 3.3 64.1 820.1 87.0
 (Provision for) benefit from
 income taxes (31.4) (1.2) (14.5) 34.1 (13.0)
 Net (Loss) Income $(831.9) $2.1 $49.6 $854.2 $74.0
 Diluted (Loss) Earnings Per Common
 Share $(3.90) $0.34
 Weighted Average Common Shares
 Outstanding - Diluted(4) 191.946 219.199

 Gross Margin 35.2% 37.3%
 SG&A as a percent of net sales 25.7% 21.8%
 Operating Margin NM 15.5%
 Effective Tax Rate NM 14.9%





 Three Months Ended February 28, 2007
 Strategic
 Inven Business Comparable
 Reported tory Realign Basis
 Basis Step ment Other (Non
 (GAAP) -up (2) (3) -GAAP)

 Net Sales $1,142.2 $1,142.2
 Cost of product sold (796.9) 5.9 2.5 0.1 (788.4)
 Gross Profit 345.3 5.9 2.5 0.1 353.8
 Selling, general and
 administrative expenses ("SG&A") (194.0) 1.5 0.1 (192.4)
 Impairment of goodwill and
 intangible assets - -
 Acquisition-related integration
 costs (6.0) 6.0 -
 Restructuring and related charges (6.4) 6.4 -
 Operating (Loss) Income 138.9 5.9 16.4 0.2 161.4
 Equity in earnings of equity
 method investees 39.2 0.1 39.3
 EBIT 200.7
 Interest expense, net (74.4) (74.4)
 Gain on change in fair value of
 derivative instrument - -
 (Loss) Income Before Income Taxes 103.7 6.0 16.4 0.2 126.3
 (Provision for) benefit from
 income taxes (33.5) (2.1) (5.7) (0.2) (41.5)
 Net (Loss) Income $70.2 $3.9 $10.7 $- $84.8
 Diluted (Loss) Earnings Per
 Common Share $0.29 $0.35
 Weighted Average Common Shares
 Outstanding - Diluted(4) 239.566 239.566

 Gross Margin 30.2% 31.0%
 SG&A as a percent of net sales 17.0% 16.8%
 Operating Margin 12.2% 14.1%
 Effective Tax Rate 32.3% 32.9%


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

 Net Sales (23%) (23%)
 Cost of product sold (28%) (30%)
 Gross Profit (10%) (7%)
 Selling, general and administrative
 expenses ("SG&A") 17% 0%
 Impairment of goodwill and
 intangible assets N/A N/A
 Acquisition-related integration costs 10% N/A
 Restructuring and related charges (3%) N/A
 Operating (Loss) Income NM (15%)
 Equity in earnings of equity method
 investees (29%) 9%
 EBIT N/A (10%)
 Interest expense, net 25% 25%
 Gain on change in fair value of
 derivative instrument N/A N/A
 (Loss) Income Before Income Taxes NM (31%)
 (Provision for) benefit from income taxes (6%) (69%)
 Net (Loss) Income NM (13%)
 Diluted (Loss) Earnings Per Common Share NM (3%)
 Weighted Average Common Shares
 Outstanding - Diluted(4)

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



 Constellation Brands, Inc. and Subsidiaries
 RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)(1)
 (in millions, except per share data)

 Year Ended February 29, 2008
 Strategic
 Inven Business Comparable
 Reported tory Realign Basis
 Basis Step ment Other (Non
 (GAAP) -up (5) (6) -GAAP)

 Net Sales $3,773.0 $3,773.0
 Cost of product sold (2,491.5) 11.4 22.1 0.1 (2,457.9)
 Gross Profit 1,281.5 11.4 22.1 0.1 1,315.1
 Selling, general and
 administrative expenses (807.3) 31.8 5.3 (770.2)
 Impairment of goodwill and
 intangible assets (807.1) 7.4 799.7 -
 Acquisition-related integration
 costs (11.8) 11.8 -
 Restructuring and related
 charges (6.9) 6.9 -
 Operating (Loss) Income (351.6) 11.4 80.0 805.1 544.9
 Equity in earnings of equity
 method investees 257.9 0.9 15.1 273.9
 EBIT 818.8
 Interest expense, net (341.8) (341.8)
 Gain on change in fair value of
 derivative instrument - -
 (Loss) Income Before Income
 Taxes (435.5) 12.3 80.0 820.2 477.0
 (Provision for) benefit from
 income taxes (174.9) (4.4) (10.5) 34.1 (155.7)
 Net (Loss) Income $(610.4) $7.9 $69.5 $854.3 $321.3
 Diluted (Loss) Earnings Per
 Common Share $(2.82) $1.44
 Weighted Average Common Shares
 Outstanding - Diluted(4) 195.135 222.925

 Gross Margin 34.0% 34.9%
 SG&A as a percent of net sales 21.4% 20.4%
 Operating Margin NM 14.4%
 Effective Tax Rate NM 32.6%


 Year Ended February 28, 2007
 Strategic
 Inven Business Comparable
 Reported tory Realign Basis
 Basis Step ment Other (Non
 (GAAP) -up (5) (6) -GAAP)

 Net Sales $5,216.4 $5,216.4
 Cost of product sold (3,692.5) 30.2 7.2 3.1 (3,652.0)
 Gross Profit 1,523.9 30.2 7.2 3.1 1,564.4
 Selling, general and
 administrative expenses (768.8) 29.7 17.3 (721.8)
 Impairment of goodwill and
 intangible assets - -
 Acquisition-related integration
 costs (23.6) 23.6 -
 Restructuring and related
 charges (32.5) 32.5 -
 Operating (Loss) Income 699.0 30.2 93.0 20.4 842.6
 Equity in earnings of equity
 method investees 49.9 2.8 52.7
 EBIT 895.3
 Interest expense, net (268.7) (268.7)
 Gain on change in fair value of
 derivative instrument 55.1 (55.1) -
 (Loss) Income Before Income Taxes 535.3 33.0 93.0 (34.7) 626.6
 (Provision for) benefit from
 income taxes (203.4) (11.8) (20.5) 12.4 (223.3)
 Net (Loss) Income $331.9 $21.2 $72.5 $(22.3) $403.3
 Diluted (Loss) Earnings Per
 Common Share $1.38 $1.68
 Weighted Average Common Shares
 Outstanding - Diluted(4) 239.772 239.772

 Gross Margin 29.2% 30.0%
 SG&A as a percent of net sales 14.7% 13.8%
 Operating Margin 13.4% 16.2%
 Effective Tax Rate 38.0% 35.6%


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

 Net Sales (28%) (28%)
 Cost of product sold (33%) (33%)
 Gross Profit (16%) (16%)
 Selling, general and administrative
 expenses 5% 7%
 Impairment of goodwill and
 intangible assets N/A N/A
 Acquisition-related integration costs (50%) N/A
 Restructuring and related charges (79%) N/A
 Operating (Loss) Income NM (35%)
 Equity in earnings of equity method
 investees 417% 420%
 EBIT N/A (9%)
 Interest expense, net 27% 27%
 Gain on change in fair value of
 derivative instrument (100%) N/A
 (Loss) Income Before Income Taxes NM (24%)
 (Provision for) benefit from income taxes (14%) (30%)
 Net (Loss) Income NM (20%)
 Diluted (Loss) Earnings Per Common Share NM (14%)
 Weighted Average Common Shares
 Outstanding - Diluted(4)

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



 Constellation Brands, Inc. and Subsidiaries
 RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
 NOTES

 (1) 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 reconciliation tables
 above, 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 above for supplemental financial data and
 corresponding reconciliations of these non-GAAP financial measures to
 GAAP financial measures for the three months and years ended February
 29, 2008, and February 28, 2007. 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.

 (2) For the three months ended February 29, 2008, strategic business
 realignment items primarily include a loss on the sale of the Almaden
 and Inglenook wine brands of $27.6 million, net of a tax benefit of
 $0.2 million, and costs recognized by the company primarily in
 connection with 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 $22.6 million, net of a tax benefit of $12.4 million. For
 the three months ended February 28, 2007, strategic business
 realignment items primarily include costs recognized by the company in
 connection with (i) 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 $5.4
 million, net of a tax benefit of $2.6 million, (ii) the restructuring
 and integration of the operations of Vincor (the "Vincor Plan") of
 $4.7 million, net of a tax benefit of $2.7 million, and (iii) its
 worldwide wine reorganization, including its program to consolidate
 certain west coast production processes in the U.S. (collectively, the
 "Fiscal 2006 Plan") of $0.5 million, net of a tax benefit of $0.3
 million.

 (3) For the three months ended February 29, 2008, other primarily includes
 an impairment of goodwill and intangible assets of $793.7 million, net
 of a tax benefit of $6.0 million, an impairment of equity method
 investment of $15.1 million, net of a tax benefit of $0.0 million, and
 a valuation allowance against net operating loss carryforwards in
 Australia of $51.7 million, partially offset by a tax benefit related
 to prior period stock option exercises of $10.0 million. For the
 three months ended February 28, 2007, other includes the write-off of
 deferred financing fees in connection with the company's amendment of
 its senior credit facility and adverse grape costs recognized in
 connection with the acquisition of The Robert Mondavi Corporation.

 (4) In accordance with the antidilution provisions of Statement of
 Financial Accounting Standards No. 128, "Earnings Per Share" ("SFAS
 No. 128"), the dilutive impact of potential common shares is excluded
 from the company's reported diluted weighted average common shares
 outstanding. As a result of the company having net income on a
 comparable basis, the dilutive impact of potential common shares is
 included in the company's comparable diluted weighted average common
 shares outstanding.

 (5) For the year ended February 29, 2008, strategic business realignment
 items primarily include a loss on the sale of the Almaden and
 Inglenook wine brands of $27.6 million, net of a tax benefit of $0.2
 million, 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 2008 Plan of
 $23.8 million, net of a tax benefit of $13.0 million, (ii) the Fiscal
 2007 Wine Plan of $5.3 million, net of a tax benefit of $2.1 million
 and (iii) the Fiscal 2006 Plan of $2.3 million, net of a tax benefit
 of $1.5 million, partially offset by a realized gain on a prior
 non-strategic asset sale of $4.8 million, net of additional tax
 expense of $0.0 million. For the year ended February 28, 2007,
 strategic business realignment items consist primarily of costs
 recognized by the company in connection with (i) the Fiscal 2007 Wine
 Plan of $31.8 million, net of a tax benefit of $10.4 million, (ii) the
 Vincor Plan of $16.3 million, net of a tax benefit of $9.4 million and
 (iii) the Fiscal 2006 Plan of $6.7 million, net of a tax benefit of
 $3.8 million and a loss on the sale of the company's branded bottled
 water business of $16.9 million, including $3.5 million of additional
 tax expense.

 (6) For the year ended February 29, 2008, other primarily includes an
 impairment of goodwill and intangible assets of $793.7 million, net of
 a tax benefit of $6.0 million, an impairment of equity method
 investment of $15.1 million, net of a tax benefit of $0.0 million, and
 a valuation allowance against net operating loss carryforwards in
 Australia of $51.7 million, partially offset by a tax benefit related
 to prior period stock option exercises of $10.0 million. For the year
 ended February 28, 2007, 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 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 $4.5 million, in connection with the
 company's repayment of its prior senior credit facility and amendment
 of its 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 $1.1 million, of
 adverse grape costs recognized in connection with the acquisition of
 The Robert Mondavi Corporation.



 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 28, 2009
 Diluted Earnings Per Share Guidance

 Forecasted diluted earnings per share
 - reported basis (GAAP) $1.46 $1.54
 Inventory step-up 0.06 0.06
 Strategic business realignment(1) 0.16 0.16
 Forecasted diluted earnings per share
 - comparable basis (Non-GAAP)(2) $1.68 $1.76


 Actual for the Year
 Ended February 29, 2008

 Diluted earnings per share - reported
 basis (GAAP) $(2.82)
 Inventory step-up 0.04
 Strategic business realignment(1) 0.31
 Other(3) 3.83
 Impact of anti-dilutive potential
 common shares(4) (0.08)
 Diluted earnings per share -
 comparable basis (Non-GAAP)(2) $1.44

 (1) Includes $0.10, $0.04, $0.02 and $0.01 diluted earnings per share for
 the year ending February 28, 2009, associated with the Fiscal 2008
 Plan, the Fiscal 2007 Wine Plan, the Fiscal 2006 Plan and the Vincor
 Plan, respectively. Includes $0.12, $0.11, $0.06, $0.02, $0.01, $0.01
 and ($0.02) diluted earnings per share for the year ended February 29,
 2008, associated with the loss on disposal of the Almaden and
 Inglenook wine brands, 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.(2)

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

 (3) Includes $3.56, $0.23, $0.07, $0.02 and ($0.05) diluted earnings per
 share for the year ended February 29, 2008, associated with an
 impairment of goodwill and intangible assets, a valuation allowance
 against net operating loss carryforwards in Australia, an impairment
 of an equity method investment, a loss on write-off of certain
 property, plant and equipment, and a tax benefit related to prior
 period stock option exercises.(2)

 (4) In accordance with the antidilution provisions of SFAS No. 128, the
 dilutive impact of potential common shares is excluded from the
 company's reported diluted earnings per share calculation. As a
 result of the company having net income on a comparable basis, the
 dilutive impact of potential common shares is included in the
 company's comparable diluted earnings per share calculation.



 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 28, 2009

 Net cash provided by operating
 activities (GAAP) $460.0 $510.0
 Purchases of property, plant and
 equipment (150.0) (170.0)
 Free cash flow (Non-GAAP) $310.0 $340.0

 Actual for Actual for
 the Year the Year
 Ended Ended
 February 29, February 28,
 2008 2007

 Net cash provided by operating
 activities (GAAP) $519.8 $313.2
 Purchases of property, plant and
 equipment (143.8) (192.0)
 Free cash flow (Non-GAAP) $376.0 $121.2

SOURCE Constellation Brands, Inc. -0- 04/03/2008 /CONTACT: Media, Mike Martin, +1-585-218-3669, Angie Blackwell, +1-585-218-3842; or Investors, Patty Yahn-Urlaub, +1-585-218-3838, Bob Czudak, +1-585-218-3668 / /Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20040119/STZLOGO AP Archive: http://photoarchive.ap.org PRN Photo Desk, photodesk@prnewswire.com/ /Web site: http://www.cbrands.com/ (STZ)