Australia's Leading Vintner Partners with Major California Vineyard and Winery Family to Launch New Wine Venture.

SAN LUIS OBISPO, Calif.--(BUSINESS WIRE)--Aug. 27, 1996-- Southcorp Wines, the producer of Penfolds and Lindemans and Australia's leading wine producer and exporter, has entered into a joint venture with Paragon Vineyard, a major grower and winery owner in the Central Coast, to produce and market California wines. The project is being launched with the 1996 harvest.

"We purposely selected a partner who shares our philosophy that wines are made in the vineyard" said Jose Fernandez, president of Southcorp Wines North America. "With Paragon's knowledge of California winegrowing as well as their Central Coast vineyard resources, we are establishing an important anchor for our California produced wines".

"Australia is the acknowledged world leader in viticultural and winemaking innovation and this dynamic venture combines strengths from California and Australia, the New World's leading winemaking communities," said James Niven, president of Paragon, headquartered in the Edna Valley on California's Central Coast.

Winemaking for the venture will be carried out by winemakers from Southcorp and initial plans include a Chardonnay, Syrah, Cabernet Sauvignon, Merlot and Australian style blends. The first release is scheduled for 1997 with the wines retailing in the $10-$20 range.

The project will operate from the Central Coast, producing California wines from grapes sourced from different coastal growing regions, incorporating Southcorp's Australian philosophy of regional blending.

Fernandez and Niven said the Central Coast was specifically selected as the core for the joint venture because of the quality and distinctiveness of the varieties grown in the region. For the 1996 harvest the venture is drawing fruit from vineyard sources selected by Paragon in the Edna Valley, Paso Robles, Santa Maria Valley and Santa Ynez Valley.

Founded more than 25 years ago by the late Jack Niven, James' father, Paragon Vineyard is a leading independent grape grower in the Central Coast and pioneered viticulture in the Edna Valley, renowned for its Chardonnay and Pinot Noir. The Nivens founded the successful Edna Valley Vineyard winery and are co- owners of the company with the Chalone Wine Group.

Southcorp Wines owns Penfolds, Lindemans, Seaview, Seppelt, Wynns Coonawarra Estate and other well-known Australian wineries. With approximately 14,000 acres of vineyards in the country's important growing regions, Southcorp is the leading vineyard owner in Australia.

Fernandez called the California joint venture with Paragon "a natural evolution in Southcorp's growing role as a global producer and marketer of fine wines and another example of the internationalization of the wine industry." Southcorp already has a successful joint venture in France, he noted.

Southcorp Wines is a wholly owned subsidiary of Southcorp Holdings, a diversified Australian public company with annual revenues of more than $2 billion.

Southcorp Wines North American arm is headquartered in Monterey, Calif.

CONTACT: Rubin/Hunter Communications, 707/571-1521