Andres Announces Agreement To Sell Spirits Division Of Cascadia Brands.

GRIMSBY, Ontario -- Andres Wines Ltd. (TSX:ADW.NV.A)(TSX:ADW.B)('Andres') - today announced that it had sold the assets and brands related to the spirits division of the recently acquired Cascadia Brands Inc. ('Cascadia') of Vancouver, British Columbia to Highwood Distillers Ltd. of Calgary, Alberta for a price of approximately $6.0 million.

Acquired by Andres in May 2005, Cascadia added a number of premium wines to the Company's growing portfolio. As one of Canada's largest producers of premium and ultra-premium wines, Cascadia's spirits brands were not a strategic fit. As a result, certain assets of Cascadia subsidiaries International Potters Distilling Corporation, Arctica Distilling Corporation and Cascadia Brands Inc will be purchased by Highwood, including the brands Potters Premium Vodka, Potters Special Old Canadian Rye Whisky, Potters Superior Rum, Potters London Dry Gin, a line of liqueurs under the Abstract label and premium Canadian whisky under the Century Reserve label.

Andres Wines Ltd. is a leading producer and marketer of quality wines in Canada. With wineries in British Columbia, Ontario and Nova Scotia, the Company markets wines produced from grapes grown in Ontario's Niagara Peninsula, British Columbia's Okanagan Valley and vineyards around the world. The Company's award-winning premium and ultra-premium brands include Peller Estates, Trius, Hillebrand Estates, Thirty Bench, Sandhill, Copper Moon and Calona Vineyards Artist Series VQA wines. Complementing these premium brands are a number of popular priced products including Hochtaler, Domaine D'Or, Schloss Laderheim, Royal and Sommet. With a focus on serving the needs of all wine consumers, the Company produces and markets consumer-made wine kit products through Winexpert Inc. and Vineco International. In addition, the Company owns and operates Vineyards Estate Wines and WineCountry Vintners, an independent wine retailer in Ontario with more than 100 well-positioned retail locations. Andres common shares trade on the Toronto Stock Exchange (symbols ADW.NV.A and ADW.B).

Andres Wines Ltd. (TSX:ADW.NV.A) (TSX:ADW.B)