Andres Wines Ltd.

Andres Wines Ltd.

October 19, 2005 10:56 ET

Andres Wines to Acquire Premium Okanagan Valley Winery

GRIMSBY, ONTARIO--(CCNMatthews - Oct. 19, 2005) -

Purchase to Enhance Company's Presence in Strong British Columbia Market

Andres Wines Ltd. (TSX:ADW.NV.A)(TSX:ADW.B) announced today that it has a signed letter of intent to purchase the Red Rooster Winery located on the Naramata Bench, near Penticton, British Columbia.

Red Rooster is a well-recognized producer of high quality Vintners Quality Alliance (VQA) premium wines. Situated in the heart of the Okanagan Valley, the winery is strongly positioned in a region well known for its niche premium wine brands, attracting tourists and wine lovers from around the world.

"We are very pleased to be adding this beautiful winery to our growing list of premium and ultra-premium brands," commented Anthony Bristow, Chief Operating Officer. "The acquisition will enhance our presence in the important and growing BC wine industry. The founders of Red Rooster Winery, Beat and Prudence Mahrer have done an outstanding job vinting wines that rank among the best in the valley. We're looking forward to sharing these great wines with wine enthusiast across Canada".

"We are proud of our Red Rooster Winery, and transferring ownership to Andres is a major step for us. The team at Andres may think that they chose us, when in fact we chose them because we believe that they will hold true to the spirit of the winery. Beat and I are excited about our new role as mentors to influence winemaking, marketing, and the ever popular winery events." stated Prudence Mahrer.

The transaction is expected to close October 31, 2005.

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 and Similkameen Valleys and vineyards around the world. The Company's award-winning premium and ultra-premium brands include Peller Estates, Trius, Hillebrand Estates, Thirty Bench, Sandhill, Copper Moon and Calona Vineyards Artist Series VQA wines. Complementing these premium brands are a number of popular priced products including Hochtaler, Domaine D'Or, Schloss Laderheim, Royal and Sommet. The Company also markets craft beer under the Granville Island brand and spirits under International Potters Distillers. 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 Products Inc. In addition, the Company owns and operates Vineyards Estate Wines and WineCountry Vintners, an independent wine retailer in Ontario with more than 100 retail locations.

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