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“Because we are committed to an entrepreneurial business model that fosters decision making close to our customers and markets, we enjoy the best of a disciplined approach to business and the creativity and vision required to continue growing the net sales of our existing business at six to eight percent annually. Combining this with value added acquisitions, our goal is to achieve 15 percent net sales growth annually to meet our stated objective of doubling the size of the company every five years,” explained Sands. “Having the right products across the wines, beers and spirits categories, combined with real insight into what consumers want, gives us superlative tools to grow our business and create greater shareholder value over time.”

For fiscal 2005, Constellation wines net sales totaled $2.85 billion, up 19 percent, driven by growth in the branded wine and U.K. wholesale businesses, the acquisition of Robert Mondavi and a six percent favorable impact from currency. Pro forma Constellation wines net sales for the year, which include $31 million of sales from Hardy for March 2003 and $43 million from Robert Mondavi for January and February 2004, increased 15 percent, including seven percent from currency.

Branded wine net sales increased 18 percent to reach $1.83 billion, driven by the acquisition of Robert Mondavi, volume growth, and a four percent benefit from currency. Pro forma branded wine net sales for the year increased 13 percent, including four percent from currency.

Net sales of branded wine in the U.S. increased 14 percent, driven by $84 million of net sales from brands acquired in the Robert Mondavi acquisition, as well as from volume gains by Ravenswood, Alice White, Blackstone, Hardys, Simi, Franciscan Oakville Estate, Estancia, Nobilo, Covey Run and La Terre.

Net sales of branded wine in the U.S. increased in part by distribution gains on focus brands given incremental marketing support such as Hardys, Ravenswood, Alice White and Blackstone. According to Information Resources

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Inc. (IRI) data for the 52 weeks ending Feb 20, 2005, the company’s focus brands increased all commodity volume (ACV) distribution throughout the year by 12 percent or more, with corresponding volume increases of 72 percent for Hardys, 55 percent for Ravenswood, 49 percent for Alice White and 27 percent for Blackstone.

“The investments we made in focus brands during fiscal 2005 contributed significantly to our overall true growth for the year,” said Sands. “Our disciplined approach to marketing support for strategic brands helps us to maximize the return for each dollar we invest in a brand. This is a disciplined approach we will continue to take when allocating marketing funds in the future. It makes business sense, and results in true growth for our portfolio.”

Net sales of branded wine in the U.S. also benefited from the company’s fine wine portfolio growth and new products introduced throughout the year, such as Turner Road, Monkey Bay, Kelly’s Revenge, Lorikeet and Twin Fin, as well as others.

Branded wine net sales in Europe grew 24 percent, including a 12 percent benefit from currency, with volume gains from Hardys Voyage, Hardys VR, Banrock Station, Nobilo and Stowells, as well as from Paul Masson, Echo Falls and other California wines in the company’s portfolio. Demand for California and Australian wines continues to increase in Europe and Constellation Brands continues to benefit from this consumer trend. Branded wine net sales in Australasia were up 28 percent, benefiting from one additional month of sales from Hardy in fiscal 2005 and nine percent from currency.

Wholesale and other net sales were up 21 percent for the year, including an 11 percent benefit from currency.

Constellation wines operating income for the year totaled $406.6 million for fiscal 2005, a 17 percent increase over fiscal 2004. For the year, the segment’s operating margins decreased slightly due, in part, to the investment in focus brands and mix.

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Constellation Beers and Spirits Results 

Annual net sales for beers and spirits reached $1.24 billion, an eight percent increase over the prior year. Beer posted a seven percent increase in net sales for the year with the majority of the gain coming from a price increase in the Mexican portfolio, as well as slight volume gains in St. Pauli Girl and Tsingtao.

“Our Mexican beer portfolio has maintained market share despite the price increase initiated last year. We believe that the Modelo portfolio has maintained its inherent momentum with the consumer and will continue to grow and gain share,” stated Sands. “Our beer business performed in line with expectations following the price increase and we’re optimistic about the future growth potential and strength of our imported beer portfolio.”

Branded spirits net sales for 2005 grew five percent, while production services grew 58 percent, resulting in total spirits growth of 10 percent. Black Velvet Canadian Whisky, the 99 line, Barton Vodka and the di Amore line were among the brands that contributed to solid branded spirits sales.

“Our spirits business has been buoyed by a general movement back to spirits and mixed drinks,” explained Sands. “We continue to innovate and move our overall portfolio toward higher margin premium products such as the 99 family, Ridgemont Reserve 1792 and Effen Vodka brands from our new joint venture.” Operating income for Constellation beers and spirits totaled $276.1 million, an increase of nine percent over the prior year, while operating margins increased slightly.

“Our acquisition of Robert Mondavi is already generating true growth by exceeding our expectations,” said Sands. “We’re seeing encouraging interest in the brand throughout Europe, where the Robert Mondavi portfolio will be part of Constellation Europe’s fine wine business. We’re also seeing renewed

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momentum in the U.S., although we only owned the portfolio for a portion of the fourth quarter.”

Regarding Constellation’s 40 percent ownership of Ruffino, which was acquired in early Dec. 2004, IRI data indicates the portfolio experienced healthy growth in the U.S., up three times the Italian wine category during the last 12 months. The trend is encouraging for Constellation, which gained U.S. distribution rights for the brand on Feb. 1, 2005.

“We’re also pleased by the initial contributions made by Effen Vodka since Constellation completed its investment in late December 2004,” said Sands.

Reported net sales for the fourth quarter of fiscal 2005 totaled $1.04 billion, an 18 percent increase versus the prior year quarter. Reported net income and diluted earnings per share totaled $47.6 million and $0.40 per share, a decrease of 24 percent and 27 percent, respectively, from the prior year. Fourth quarter results include acquisition-related integration costs, restructuring and related charges and net unusual costs or gains. Net income and diluted earnings per share on a comparable basis, which exclude net costs of $25.5 million after tax, or $0.22 per share for the fourth quarter of fiscal 2005, and a net gain of $1.0 million, or $0.01 per share for the fourth quarter of fiscal 2004, increased 18 percent to $73.2 million and 15 percent to $0.62 per share, respectively, for the fourth quarter of fiscal 2005.

Pro forma net sales on a comparable basis for the fourth quarter increased 13 percent, including two percent from currency. The comparable pro forma net sales included $43 million of sales from Robert Mondavi for January and February 2004, and excluded $9.2 million of relief from certain excise tax, duty and other costs incurred in prior year periods.

For the fourth quarter of fiscal 2005, Constellation wines net sales totaled $794.7 million, up 26 percent driven by the acquisition of Robert Mondavi, growth

in branded wine, and a three percent favorable impact from currency. Pro forma Constellation wines net sales for the quarter, which include $43 million of sales from Robert Mondavi for January and February 2004, increased 18 percent, including three percent from currency.

Branded wine net sales increased 38 percent to reach $543.8 million, driven by the acquisition of Robert Mondavi, volume growth and a two percent benefit from currency. Pro forma branded wine net sales for the quarter increased 25 percent, including two percent from currency.

Net sales of branded wine in the U.S. increased 46 percent including $84 million of sales from the Robert Mondavi portfolio. Branded wine net sales in Europe grew 16 percent in the quarter, including a seven percent impact from currency. Australasia branded wine net sales were up 41 percent in the quarter, including a three percent benefit from currency.

Wholesale and other sales increased seven percent in the fourth quarter, including a six percent currency benefit.

Operating income for the wines segment totaled $123.5 million, a 37 percent increase over the fourth quarter of fiscal 2004.

Net sales for beers and spirits totaled $243 million in the fourth quarter and was essentially even with the prior year period. Beer net sales decreased four percent in the fourth quarter. Shipments and depletions were down in the fourth quarter due to the challenge of overcoming the buy-in by distributors and sell-through from promotional activities at retail preceding the price increase last year for the Mexican imported beer portfolio, which was anticipated and previously communicated. Based on IRI data for the 13-week period ending Feb. 20, 2005, Constellation’s total beer portfolio in food stores, in its territories, was up 4.5 percent in volume and maintained market share versus a year ago.

For the quarter, spirits net sales grew 11 percent, reflecting an increase in branded spirits net sales of six percent and 49 percent for production services.

Operating income for beers and spirits totaled $53.1 million, an increase of

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six percent over the prior year period.  

“Our balanced portfolio approach, combined with geographic diversity, helped us to generate consistent growth performance throughout the year,” explained Sands. “When branded wine was a little below trend, beer performed well during the first half of the year, and conversely, branded wine performed well in the back half of the year when beer faced difficult comparisons. Spirits, wholesale and production services consistently exceeded expectations. Our portfolio growth, combined with new product introductions and strategic acquisitions, give us the momentum to continue on the growth course we’ve set for ourselves moving forward, which we are confident will generate incremental true growth and shareholder value in the future.”

Constellation’s board of directors has approved a two-for-one stock split of both the company’s class A common stock and class B common stock, to be distributed in the form of a stock dividend on, or about, May 13, 2005, to stockholders of record on April 29, 2005. Pursuant to the terms of the stock dividend, each holder of class A common stock will receive one additional share of class A stock for each share of class A stock held, and each holder of class B common stock will receive one additional share of class B stock for each share of class B stock held. The financial statements included in this news release do not reflect the effect of these stock splits. “Based on the recent performance of our stock, the board felt it was the appropriate time to authorize these stock splits,” said Sands.

Constellation Brands, Inc. is a leading international producer and marketer of beverage alcohol brands with a broad portfolio across the wine, spirits and imported beer categories. Well-known brands in Constellation’s portfolio include: Corona Extra, Corona Light, Pacifico, Modelo Especial, Negra Modelo, St. Pauli

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Girl, Tsingtao, Black Velvet, Fleischmann’s, Mr. Boston, Paul Masson Grande Amber Brandy, Chi-Chi’s, 99 Schnapps, Ridgemont Reserve 1792, Effen Vodka, Stowells, Blackthorn, Almaden, Arbor Mist, Vendange, Woodbridge by Robert Mondavi, Hardys, Nobilo, Alice White, Ruffino, Robert Mondavi Private Selection, Blackstone, Ravenswood, Estancia, Franciscan Oakville Estate, Simi and brands from Robert Mondavi Winery. For additional information about Constellation Brands, as well as its product portfolio, visit the company’s Web site at www.cbrands.com.

A conference call to discuss fiscal 2005 results and outlook will be hosted by Chairman and Chief Executive Officer Richard Sands and Executive Vice President and Chief Financial Officer Tom Summer on Thursday, April 7, 2005 at 5:00 p.m. (Eastern). The conference call can be accessed by dialing +412-858-4600 beginning 10 minutes prior to the start of the call. A live listen-only web cast of the conference call, together with a copy of this press release (including the attachments) and other financial information that may be discussed in the call are available on the Internet at Constellation’s web site: www.cbrands.com under “Investors.”

Explanations 

Net income and diluted earnings per share on a comparable basis exclude acquisition-related integration costs, restructuring and related charges and net unusual costs or gains. Pro forma net sales give effect to the Robert Mondavi and Hardy acquisitions as if the company had owned them in the same periods a year ago. The company discusses results on a comparable basis, and pro forma basis, in order to give investors better insight on underlying business trends from continuing operations. Management uses these measures in evaluating results from continuing operations.

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Tables reconciling these measures, as well as other related financial measures to reported results are included in this release. For a detailed discussion of these items, please see the section “Items Affecting Comparability” following the financial statements. The company’s measure of segment profitability excludes acquisition-related integration costs, restructuring and related charges and net unusual costs or gains, which is consistent with the measure used by management to evaluate results.

The table below sets forth management’s current diluted earnings per share expectations both on a reported basis and a comparable basis for the first quarter ending May 31, 2005, and fiscal year ending Feb. 28, 2006. This is compared to actual diluted earnings per share both on a reported basis and a comparable basis for the first quarter ended May 31, 2004, and fiscal year ended Feb. 28, 2005.

With respect to the table, the reported basis and comparable basis estimates are subject to final purchase accounting adjustments related to the Robert Mondavi acquisition and the investment in Ruffino. The reported basis and comparable basis estimates do not take into account the impact of the two-for-one stock splits and they exclude the impact of Statement of Financial Accounting Standards No. 123 (revised 2004) (“SFAS No. 123(R)”) “Share-Based Payment,” which the company is required to adopt during fiscal year 2006. With respect to SFAS No. 123(R), the expense will be a function of several factors including the company’s date of adoption, the number of historical and new option grants, and the valuation methodology employed. Reconciliations of reported information to comparable information are included in this media release.

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