AXA/Groupe Frey/BC Partners and Seagram in Discussions On Potential Sale of Mumm and Perrier-Jouet.

MONTREAL--(BUSINESS WIRE)--October 28, 1998--Societe Financiere des Vins de Champagne (SFVC), jointly owned by AXA and Groupe Frey, and The Seagram Company Ltd. today confirmed that they have entered exclusive negotiations concerning the potential sale of Mumm and Perrier-Jouet Champagne companies to SFVC.

SFVC and Seagram also confirmed that, if the negotiations are successfully concluded, Seagram will retain global distribution of both brands.

SFVC owns and markets the Germain and Binet Champagne brands. The potential acquisition of Mumm and Perrier-Jouet would enable SFVC to become the number three Champagne producer. Groupe Frey is a family-run company based in Reims, with interests in Champagne, commercial property and specialized distribution. AXA, through its subsidiary Sofapi, will retain a shareholding in SFVC and it is expected that BC Partners, a leading European venture capital business, would become a shareholder in SFVC, if the negotiations are successfully concluded.

The Seagram Company Ltd. operates in two global business segments: spirits and wines; and entertainment. The spirits and wine businesses are engaged principally in the production and marketing of distilled spirits, wines, coolers, beers and mixers throughout more than 190 countries and territories. The entertainment company, Universal Studios, Inc., produces and distributes motion picture, television and home video products, and recorded music; and operates theme parks and retail stores. Headquartered in Montreal, Seagram employs 25,000 people worldwide. The Company's corporate website is located at www.seagram.com.