CONSTELLATION SELLS ZILLAH WINERY

Constellation announced today that it has finalized an agreement to sell its Zillah winery in the Yakima Valley, Washington, to Roza Hills Vineyards, LLC (established 1982). STZ acquired Zillah winery as part of an acquisition from Corus Brands in 2001, and has since leased the winery to Washington Wine & Beverage, an affiliate of Roza Hills. Other well known Washington wines in the STZ portfolio include Hogue Cellars, Covey Rum and Colombia Winery.

"The purchase of the Zillah winery is the natural next step for a business relationship that has been mutually beneficial to both Washington Wine & Beverage and Constellation Wines U.S.," said Sal Leone, president and CEO of Washington Wine & Beverage Company.

All the land, equipment and buildings are included in the transaction, which is expected to close in February 2007. Terms of the transaction were not disclosed.