SOURCE: Yarraman Winery, Inc.

February 13, 2009 14:51 ET

Asia Distribution Solutions Limited (LSE AIM: ADSL) Announces Merger With Yarraman Winery, Inc. (YRMN) to Become Global Beverages Asia, Inc.

Global Beverages Asia to Build a National Distribution and Retail Footprint in China; Yarraman Provides Proprietary Vineyard and Winery Operations -- a Key Driver for Growth

NEW YORK, NY--(Marketwire - February 13, 2009) - Yarraman Winery, Inc. (PINKSHEETS: YRMN), an Australian based wine company, today announced that the stock acquisition of Asia Distribution Solutions Limited (AIM: ADSL) ("ADSL"), a leading Chinese distributor of wine and spirits throughout China for beverage companies worldwide, has been accepted by more than 90% of ADSL's shareholders and the acquisition is expected to close within the next ten business days. After completion of the acquisition of ADSL's shares by Yarraman, Yarraman intends to change its name to Global Beverages Asia, Inc. ("Global Beverages"). Global Beverages will retain Yarraman senior management to continue to operate its winery and vineyard in Australia and some of the current board of directors. Shares are expected to be quoted on the Over-the-Counter (OTC) Bulletin Board in the second quarter of 2009. Newbridge Securities Corporation acted as M&A Advisor to Yarraman on the transaction.

Global Beverages is building a national retail and distribution footprint in China by continuing its consolidation of highly accretive acquisitions at low multiples in a fragmented Chinese beverage distribution market. Global Beverages has just recently opened the first and one of several planned Big Box retail superstore concepts in Wenzhou for beers, wines and spirits.

Acquisition of 458 Acres of Jugiong Vineyard

In connection with this merger the newly enlarged Group will acquire Jugiong a 458 acre vineyard to provide wine making capacity which will supply wine at all levels for the Chinese market, including entry mid-range and super premium wines.

The integration of the Yarraman winery and proprietary vineyards operation with ADSL's business will be a key driver for growth as:

--  It will provide a reliable supply of quality imported wines in a
    rapidly expanding Chinese market where a large shortage of foreign imported
    brands is expected.
--  Proprietary branded wines will increase our margins.
--  The tangible assets of Yarraman are approximately $40 million USD
    (1,319 acres of vineyard land, inventory & bottling facility).
--  The combined business will present a stronger platform from which to
    develop a substantial high-growth beverage business via its distribution
    platform in addition to the new Big Box retail outlets which will serve the
    ever expanding Chinese market and will be rolled out in China either
    through joint ventures or franchise agreements.

Steve Wong Appointed CEO of Global Beverages

Steve Wong will be appointed CEO of Global Beverages. Mr. Wong was formerly the head of Pepsi-China, in charge of opening new markets and logistical distribution, as well as the former CEO of Sara Lee-China. Mr. Wong has over 25 years experience in the food and beverage industry with multinational corporations in China.

Steve stated, "China is the world's largest and fastest growing beverage market and the largest global beer consuming market -- estimated to be $36 billion USD with 8% annual growth. In addition, China's wine consumption is estimated to be approximately $4.8 billion USD and growing at 6.5x the global market."

Steve Kulmar Joins the Board as a Non-Executive Director

Mr. Kulmar has an international reputation in working with some of the world's largest beverage retailers. He will be joined with Richard Broug, who was responsible for repositioning and revitalizing Coles in Australia into an AUD $10 billion enterprise by integrating the private label procurement and bring $250 million of new products, increasing sales by 16% and margins by 300 basis point. He was also responsible for developing the import strategy which resulted in up to 50% margin improvements in various categories and Steve Kulmar brings considerable experience in Big Box retailing. The first store opened in Wenzhou and this will be followed shortly by Shanghai which opens in April. Shanghai has a population estimated at 20 million and incomes among the highest anywhere in China. This region accounts for nearly 1/3 of mainland China's GDP.

"The completion of the merger with Yarraman and the listing of our stock in the US public market represent the completion of several steps that we have taken to financially position the Company for future growth," said Mr. Michael Kingshott, current Chairman of ADSL and the soon to-be appointed Chairman of Global Beverages. Mr. Kingshott also stated, "The considerable expertise that the combined boards are putting in place in GBA will allow us to capitalize on the vast Chinese market. The board of ADSL recognized that for the Company's continued growth in China as a leading player in the beverage, retail and distribution of beers, wines and spirits, it would need to complement its business and broaden its resources. Yarraman's excellent reputation and capacity as a high-grade wine production company provides a perfect complement. The additional expertise that we now have assembled will allow the Company to extend its distribution operations into the Big Box retail market, thus benefiting both from the HORECA trade and direct retailing of its wide range of beverage products."

About Asia Distribution Solutions Limited (ADSL)

ADSL is a Cayman Islands holding Company formed in April 2007 and holds the following two groups of subsidiaries; Panda Express China Limited and Vitality Development Holdings Limited. The main country of operation is in the People's Republic of China. The ADSL Group provides distribution and manufacturing services for foreign and PRC companies to import and sell their branded beverage and food products in the PRC. The Group also provides procurement and logistics solutions to supermarkets, hotels, clubhouses, selected high-street restaurants, bars, cafes and bakeries, together with beverage wholesalers and retailers, generally referred to in the trade industry as on-premise or HORECA, (hotel, restaurant and cafe) accounts.

ADSL has an agreement with Times Ltd. Hypermarket to open a number of mini concession spaces. The Group distributes a range of branded beverages, including Tiger, Heineken beers and Snapple's fruit drinks. The business started in 1998 in Shanghai, the largest and fastest growing regional beverage market in China. The Group's management has been able to quickly capture a large share of this rapidly growing market by supporting foreign brands (including Heineken and Tiger beers) that seek local distribution but are hindered by the range of complex regulations, diverse distribution networks, widely scattered consumer demand centre's and a range of local taste preferences. In addition, numerous negotiations have taken place in the last few months to secure contracts with a number of international and national supermarket chains for bottling and distribution of beverages under their private labels. For further information, please see

About Yarraman Winery, Inc. (PINKSHEETS: YRMN)

Yarraman is a Company incorporated in the state of Nevada, USA, whose operations consist of a vineyard and winery located in Australia. Yarraman Winery Inc., through its wholly-owned operating subsidiary in Australia, Yarraman Estate P/L, is one of the oldest vineyards and wineries in the Upper Hunter Valley, which is Australia's oldest wine growing region dating back to the early 1800s. The Upper Hunter Valley Wybong vineyard has a total of approximately 638 acres, of which 187 acres are under vine and approximately 13 acres are utilized for the winery. The Yarraman Winery was opened in 1967 and currently has a 2,300 ton processing facility, 1.5 million liters storage with the capacity to yield 160,000 cases. Only 50% of this capacity is currently being utilized. The winery utilizes current technology in its harvesting, production and packaging of its products. Over $10 million US has been invested since 1994 on capital improvements to the winery and vineyard. For further information, please see

Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by the Company or on its behalf. This news release contains forward-looking statements, which are subject to certain risks and uncertainties that can cause actual results to differ materially from those described. These factors, and others, are discussed from time to time in our filings with the Securities and Exchange Commission. Undue reliance should not be placed on these forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise these forward-looking statements to reflect events or circumstances after the date they are made.

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