Andres Wines Ltd.
TSX : ADW.B
TSX : ADW.A

Andres Wines Ltd.

May 12, 2005 19:06 ET

Andres Announces Agreement To Purchase Cascadia Brands

GRIMSBY, ONTARIO--(CCNMatthews - May 12, 2005) - (TSX:ADW.NV.A)(TSX:ADW.B), Andres Wines Ltd. ('Andres') today announced that it has executed an agreement with Uniinvest Holding AG, in liquidation, of Zurich, Switzerland to purchase 100% of the common shares of Cascadia Brands Inc. ('Cascadia') of Vancouver, British Columbia. The transaction is expected to close by the end of May, 2005.

Cascadia is one of Canada's largest producers of premium brand wine, craft beer and spirits. The companies' production facilities are located in Kelowna and Vancouver, British Columbia. Sales for its most recently completed fiscal year were approximately Cdn $40.0 million.

"We are very excited about the opportunity to bring together two of Canada's largest wineries," commented John Peller, President and Chief Executive Officer of Andres. "Cascadia has a long history of success built on the strength of its brands and its people. The purchase represents a strategic acquisition by Andres by increasing our commitment to the Canadian market. The companies will continue to provide Canadian consumers with the highest quality products and to balance market penetration for Andres in both Eastern and Western Canada."

"The businesses of Cascadia and Andres are an excellent strategic fit and the sale to Andres is a positive development for the employees and customers of both companies," said Bill Baxter, President of Cascadia.

Andres Wines Ltd is a leading producer and marketer of quality wines in Canada. With wineries in British Columbia, Ontario and Nova Scotia, the Company markets wines produced from grapes grown in Ontario's Niagara Peninsula, British Columbia's Okanagan Valley and vineyards around the world. The Company's award-winning premium Peller Estates, Trius and Hillebrand Estates brands complement its popular priced products including Hochtaler and Domaine D'Or. The acquisition of Cascadia Brands Inc., will add the Sandhill, Artist Series and Copper Moon VQA wine brands, the Schloss Laderheim, Royal and Sommet popular priced wine brands as well as the premium Granville Island craft beers and International Potters Distillers spirit brands. With a focus on serving the needs of all wine consumers, the Company also produces and markets wine kit products through Winexpert Inc. and Vineco International. The Company operates as an independent wine retailer in Ontario with more than 100 stores, operating under Vineyards Estate Wines and WineCountry Vintners.



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