NEW ACQUISITIONS GIVE UST A BOOST

In today’s third quarter financial results, UST said net sales for Ste. Michelle Wine Estates increased 18.3% to $82.3 million as total premium case volume increased 12.6% to 1.2 million. Strong growth was driven by core brands, especially Chateau Ste. Michelle, as well as by last year's acquisition of Erath and the recent acquisition of Stag's Leap Wine Cellars, which closed on September 11, 2007. The net sales growth, combined with improved product mix, led to a 34.1% increase in operating profit to $12.7 million.

"This quarter, Chateau Ste. Michelle was the fastest growing top 25 premium wine brand in the United States," said Theodor P. Baseler, president, Ste. Michelle Wine Estates. "Solid performance by our core brands, combined with our recent acquisitions of Erath and Stag's Leap Wine Cellars, drove strong growth and improved returns in our business."