Yarramman Winery, Inc.
PINK SHEETS : YRMN

April 30, 2009 07:44 ET

Yarraman Winery, Inc. Ends Merger Discussions With Drinks America

SYDNEY, AUSTRALIA--(Marketwire - April 30, 2009) - Yarraman Winery, Inc. (PINK SHEETS:YRMN)(the "Company") today announced that it has ended merger discussions with Drinks America Holdings, Inc. and the letter of intent to combine the two companies has been terminated.

Michael Kingshott, the Company's non-executive Chairman explained, "After careful consideration, the Board of Directors has determined that it is in the Company's best interest to focus on the completion of the acquisition of Asia Distribution Solutions Ltd. ("ADSL") by Yarraman Winery, Inc. and the integration of the Company's operations in China before further pursuit of other M&A initiatives."

Furthermore, Mr. Kingshott stated, "We intend to continue to develop our business as a leading, high growth operator in the Chinese beverage industry. The combined companies of ADSL and Yarraman, soon to be renamed Global Beverage Asia ("GBA") creates one of the only vertically integrated Beverage Industry companies in China. GBA's operations will include a robust beverage distribution platform, a major retailer of beer, wine & spirits and high quality proprietary wines from our GBA Australian vineyards."

About ADSL

The main country of operation is in the People's Republic of China. ADSL provides distribution for foreign and PRC companies to import and sell their branded beverage and food products in China. The company also provides procurement and logistic solutions to supermarkets, hotels and clubhouses, selected high-street restaurants and bars, cafes and bakeries, together with beverage wholesalers and retailers, generally referred to in the trade industry as on-premises or HORECA (hotel, restaurant and cafe) accounts.

The company distributes a range of branded beverages, including Heineken and Tiger beers and Snapple's fruit drinks. The business started in 1998 in Shanghai, the largest and fastest growing regional beverage market in China. The company's management has been able to quickly capture a large share of this rapidly growing market by supporting foreign brands that seek local distribution but are hindered by the range of complex regulations, diverse distribution networks, widely scattered consumer demand centers and a range of local taste preferences. For further information, please see http://www.asiadistributionsolutions.com.

About Yarraman

Yarraman Estate P/L. is the oldest vineyard and winery in the Upper Hunter Valley which is Australia's oldest wine growing region dating back to the early 1800s. Yarraman award winning wines are sold in the United States, Australia, Europe and throughout Asia. Approximately 90,000 cases of Yarraman's award- winning wines are sold annually in 13 different countries.

Yarraman Estate vineyard was established in 1958 and now produces and sells premium (up to US$14 per 75cl bottle), super-premium (up to US$20 per 75cl bottle) and ultra-premium (over US$20 per 75cl bottle) wines. The wines are made at the Yarraman winery in New South Wales, Australia, where grapes are crushed, fermented and made into wine or blended with grapes purchased from other vineyards for production of varietals. Wines are sold both in Australia and Internationally, principally under the "Yarraman" label. The vineyards from which Yarraman produces wines are located in two regions, Wybong in the Upper Hunter Valley, and the Gundagai Region in the Central Highlands both in New South Wales, Australia.

The 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 litres 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 US $10 million has been invested since 1994 on capital improvements to the winery and vineyard. For further information, please see http://www.yarramanestate.com.

The Jugiong Vineyard property was established by a group of private investors in 1998 and is located over two blocks of land totaling 650 acres comprising the Wirrilla Homestead and Wirrilla Point Block, with 475 acres under vines.

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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