Beringer Wine Estates Announces Record Fourth Quarter and Fiscal 1999 Earnings.

ST. HELENA, Calif.--(BUSINESS WIRE)--Aug. 3, 1999--

Beringer Wine Estates Holdings, Inc. (Nasdaq:BERW) today announced record operating and financial results for its fourth quarter and full year ended June 30, 1999.

Fourth Quarter Ended June 30, 1999

Fourth quarter adjusted net income increased 18% to $10.2 million, or $0.50 per diluted share. This compares with adjusted net income of $8.7 million, or $0.43 per share for the fourth quarter last year.

Net revenues for the quarter also increased by 18% to $95.4 million. The Company shipped 1.7 million nine-liter cases, up by 8%, with average unit net revenue increasing by 9%.

Fourth quarter revenue growth was primarily driven by the Beringer brand. Led by the market expansion of Beringer Founders' Estates, the total brand increased revenue by 22%.

"We are very pleased by the performance of the Beringer Founders' Estate line which now is shipping to about two-thirds of the U.S. wine market," said Walt Klenz, Chairman and Chief Executive Officer.

Adjusted gross margins averaged 50.7% for the quarter. Adjusted operating income increased 18% to $21.9 million with an adjusted operating profit margin of 23.0%.

Adjusted net income margin was 10.7%, unchanged from the fourth quarter last year.

On an as-reported basis, including the impact of non-cash acquisition-related charges, the Company reported net income of $9.6 million as compared with $6.3 million in the fourth quarter last year, an increase of 53.0%.

Full Year Ended June 30, 1999

For the full year, adjusted net income increased 33% to $39.3 million or $1.94 per share. This result compares with adjusted net income of $29.5 million, or $1.63 per share for the full year last year.

Net revenues for the full year were $376.2 million, an increase of 18% versus the prior year. Volume of nine-liter case shipments increased by 12% to 6.8 million cases while average unit net revenue increased by nearly 6% to $55.42 per case.

Adjusted gross margins averaged 51.7% for the full year compared with 51.4 % last year.

Adjusted operating income for the full year increased 18% to $83.0 million. The Company's adjusted operating profit margin of 22.1% was unchanged from last year.

On an as-reported basis, including the impact of non-cash acquisition-related charges the Company reported net income available to common stockholders of $29.6 million for the full year as compared with $7.9 million last year.

Beringer Wine Estates Holdings, Inc. is a market leader in the premium wine industry. The Company consists of six award-winning California wineries and a growing import portfolio from Italy, France and Chile. The Company controls over 10,500 acres of vineyard land, all in the coastal regions of California.

Note: This press release contains forward looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward looking statements, including whether the premium wine category will continue to grow, whether consumer demand for the wines of Beringer Wine Estates Holdings, Inc. will continue to expand and whether the company is well-positioned for the future. For further details and a discussion of the risks and uncertainties, refer to Beringer's filings with the Securities and Exchange Commission, including its most recent Form 10-Q dated May 3, 1999 and Annual Report for the fiscal year ended June 30, 1998. The forward-looking statements represent the company's judgement as of the date of this press release. Beringer Wine Estates Holdings, Inc. disclaims any intent or obligation to update its forward-looking statements. Actual results may differ materially and adversely from those anticipated, believed, estimated or otherwise indicated.

(Financials Follow) -0-

                         Beringer Wine Estates
                           Income Statement
                   Three Months Ended June 30, 1999
                 (in thousands, except per share data)

                                Adjusted (1)            As Reported
                             1999         1998        1999       1998

Net revenues                $95,357     $81,093     $95,357    $81,093
Cost of goods sold (2)       47,024      39,164      48,240     44,243
   Gross profit (2)          48,333      41,929      47,117     36,850

Operating expenses           26,413      23,420      26,413     23,420
   Operating income (2)      21,920      18,509      20,704     13,430

Interest and other
 expense (net)                5,343       4,468       5,343      4,468
   Pre-tax income (2)        16,577      14,041      15,361      8,962

Income taxes (3)              6,338       5,344       5,774      2,696
   Net income               $10,239      $8,697      $9,587     $6,266

   Earnings per share         $0.50       $0.43       $0.47      $0.31

Weighted average shares
   Diluted shares
    outstanding              20,300      20,280      20,300     20,280

(1)  In accordance with purchase accounting rules applied to the
     acquisition of Beringer Wine Estates in 1996 and to the
     subsequent acquisitions of Chateau St. Jean and Stags' Leap,
     inventory of each acquired company was increased to fair market
     value. This inventory step-up generates non-cash charges to cost
     of goods sold as the inventory on hand at the acquisition date is
     sold.

     The adjusted income statements for the three months ended June
     30, 1999 and 1998 reflect the comparative consolidated financial
     data adjusted for inventory step-up charges.

(2)  For the three months ended June 30, 1999 and 1998, cost of goods
     sold was reduced and gross profit, operating income and income
     before taxes were effectively increased in the adjusted income
     statements by $1.2 million and $5.1 million, respectively, as a
     result of the adjustment for inventory step-up charges.

(3)  For the three months ended June 30, 1999 and 1998, adjusted
     income taxes have been computed on pre-tax income adjusted for
     the inventory step-up charges. An adjusted tax rate of 38.2% was
     applied in the current quarter as compared with a 38.1% rate in
     the comparable quarter last year.


                         Beringer Wine Estates
                           Income Statement
                     Full Year Ended June 30, 1999
                 (in thousands, except per share data)

                                Adjusted (1)           As Reported
                              1999        1998        1999      1998

Net revenues               $376,154    $318,448    $376,154   $318,448
Cost of goods sold (2)      181,582     154,712     198,030    182,557
   Gross profit (2)         194,572     163,736     178,124    135,891

Operating expenses          111,592      93,248     111,592     93,248
   Operating income (2)      82,980      70,488      66,532     42,643

Interest and other
  expense (net)              19,428      20,535      19,428     20,535
   Pre-tax income (2)        63,552      49,953      47,104     22,108

Income taxes (3)             24,226      18,527      17,519      6,543
   Net income before
    extraordinary items      39,326      31,426      29,585     15,565

Preferred dividends and
 discount accretion             -         1,889         -        1,889
Accelerated accretion of
 remaining discount (4)         -            -          -        2,476

Net income available to
 common stockholders before
 extraordinary items         39,326       29,537     29,585     11,200

Extraordinary item,
 net of tax (5)                  -           -          -        3,317

   Net income to
    common stockholders      $39,326     $29,537    $29,585     $7,883


   Earnings per share          $1.94       $1.63      $1.46      $0.43

Weighted average shares
   Diluted shares outstanding 20,300      18,170     20,300     18,170


(1)  In accordance with purchase accounting rules applied to the
     acquisition of Beringer Wine Estates in 1996 and to the
     subsequent acquisitions of Chateau St. Jean and Stags' Leap,
     inventory of each acquired company was increased to fair market
     value. This inventory step-up generates non-cash charges to cost
     of goods sold as the inventory on hand at the acquisition date is
     sold.

     The adjusted income statements for the twelve months ended June
     30, 1999 and 1998 reflect the comparative consolidated financial
     data adjusted for the inventory step-up charges as well as the
     one-time expenses referred to in notes (4) and (5).

(2)  For the twelve months ended June 30, 1999 and 1998, cost of goods
     sold was reduced and gross profit, operating income and income
     before taxes were effectively increased in the adjusted income
     statements by $16.4 million and $27.8 million, respectively, as a
     result of the adjustment for inventory step-up charges.

(3)  For the twelve months ended June 30, 1999 and 1998, adjusted
     income taxes have been computed on pre-tax income adjusted for
     the inventory step-up charges. An adjusted tax rate of 38.1% has
     been applied for the period with a tax rate of 37.1% applied last
     year.

(4)  The early redemption of the Series A Preferred Stock resulted in
     a one-time $2.5 million reduction of net income available to
     common stockholders, which represents the difference on the
     redemption date between the carrying amount and the redemption
     amount of the Series A Preferred Stock.

(5)  Proceeds from the October, 1997 initial public offering allowed
     the company to retire all of the outstanding subordinated notes.
     The prepayment penalty and write-off of the remaining original
     issue discount resulted in an extraordinary tax-effected charge
     of $3.3 million.


                         Beringer Wine Estates
                  Selected Balance Sheet Information
                             (in millions)


                            June 30, 1999              June 30, 1998
Current Assets                  $345.1                       $291.2
Current Liabilities             $164.7                       $152.3
Total Liabilities               $426.2                       $357.7
Stockholders' Equity            $218.1                       $185.9
Working Capital                 $180.4                       $138.9
Total Debt                      $328.0                       $277.2