$500 million utilized for share repurchases

SVEDKA Vodka acquisition finalized

U.K. wholesale business joint venture formed

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

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

 First Quarter 2008 Net Sales Highlights*
 (in millions)

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

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

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

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

 Net Sales Commentary

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

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

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

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

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

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

Operating Income, Net Income, Diluted EPS Commentary

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

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

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

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

Summary

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

Outlook

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

 Constellation Brands Fiscal Year 2008
 Diluted Earnings Per Share Outlook

 Reported Basis Comparable Basis

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

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

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

 Conference Call

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

Explanations

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

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

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

About Constellation Brands

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

Forward-Looking Statements

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

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

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

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

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

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


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

 May 31, February 28,
 2007 2007
 Assets

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

 Total current assets 2,909.3 3,023.3

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

 Total assets $9,826.2 $9,438.2

 Liabilities and Stockholders' Equity

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

 Total current liabilities 1,507.5 1,591.1

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

 Total liabilities 6,697.9 6,020.7

 Total stockholders' equity 3,128.3 3,417.5

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


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

 Three Months Ended
 May 31, May 31,
 2007 2006

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

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

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

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

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

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


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

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

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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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

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

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

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


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

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


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

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

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

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


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

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

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

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

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

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

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

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

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

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

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


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

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

 Three Months Ended May 31, 2007

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

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


 Three Months Ended May 31, 2006

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

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


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

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


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

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

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


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


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

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

 Actual for the
 Year Ended
 February 28, 2007

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

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

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

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


 Free Cash Flow Guidance

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

 Range for the Year
 Ending February 29, 2008

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

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

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