Brown-Forman and Orendain End Joint Ventures; Brown-Forman to Assume Full Ownership of Don Eduardo Trademark and Orendain to Assume Full Ownership of Orendain Trademarks.

LOUISVILLE, Ky. -- Brown-Forman Corporation (NYSE:BFB) (NYSE:BFA) announced today that it has agreed with the Orendain family of Mexico to end their joint ventures in the tequila business. Brown-Forman will purchase the remaining portion of the global trademark for the Don Eduardo super premium tequila brand from the Orendain family, and the Orendain family will repurchase all other Orendain trademarks that were once part of the joint ventures. Terms were not disclosed.

Since the original joint venture was launched in 1999, Brown-Forman and the Orendain family have shared ownership of the corresponding trademarks through two joint ventures: Tequila Orendain de Jalisco and BFC Tequila Limited. Tequila Orendain de Jalisco produced the tequila and held the trademarks in Mexico. BFC Tequila Limited held the trademarks for all markets excluding Mexico. During the process of closing the Casa Herradura tequila transaction earlier this year, Brown-Forman began negotiations with the Orendain family for the termination of their joint ventures, including the purchase of full ownership and rights to the Don Eduardo brand, and returning all rights to the international Orendain trademarks to the Orendain family.

"Termination of the joint ventures with the Orendain Family was a natural step for both parties, given our purchase of Casa Herradura," said Brown-Forman President and Chief Executive Officer Paul Varga. "Each side will now handle its own products and we will produce all of our tequila brands out of our Casa Herradura manufacturing operation.

"We believe Don Eduardo, which is still early in its development stage, has excellent potential to continue growing in the expanding super premium tequila category. Just as our many successful American whiskey brands fit nicely into our portfolio, our premium and super premium tequilas will complement one another, as each tequila brand is uniquely positioned and differentiated. Together these wonderful brands give Brown-Forman a strong hand in one of the industry's most exciting growth segments."

Brown-Forman Corporation is a diversified producer and marketer of fine quality consumer products, including Jack Daniel's, Southern Comfort, Finlandia Vodka, Tequila Herradura, el Jimador Tequila, Canadian Mist, Fetzer and Bolla Wines, and Korbel California Champagnes.

Important Note on Forward-Looking Statements:

This release contains statements, estimates, or projections that constitute "forward-looking statements" as defined under U.S. federal securities laws. Generally, the words "expect," "believe," "intend," "estimate," "will," "anticipate," and "project," and similar expressions identify a forward-looking statement, which speaks only as of the date the statement is made. Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. We believe that the expectations and assumptions with respect to our forward-looking statements are reasonable. But by their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that in some cases are out of our control. These factors could cause our actual results to differ materially from Brown-Forman's historical experience or our present expectations or projections. Here is a non-exclusive list of such risks and uncertainties:

* changes in general economic conditions, particularly in the United States where we earn a significant portion of our profits;

* lower consumer confidence or purchasing in the wake of catastrophic events;

* tax increases, whether at the federal or state level or in major international markets and/or tariff barriers or other restrictions affecting beverage alcohol;

* limitations and restrictions on distribution of products and alcohol marketing, including advertising and promotion, as a result of stricter governmental policies adopted either in the United States or globally;

* adverse developments in the class action lawsuits filed against Brown-Forman and other spirits, beer and wine manufacturers alleging that our industry conspired to promote the consumption of alcohol by those under the legal drinking age;

* a strengthening U.S. dollar against foreign currencies, especially the British Pound, Euro, Australian Dollar, and the Mexican Peso;

* reduced bar, restaurant, hotel and travel business, including travel retail, in the wake of terrorist attacks;

* lower consumer confidence or purchasing associated with high energy prices;

* longer-term, a change in consumer preferences, social trends or cultural trends that results in the reduced consumption of our premium spirits brands;

* changes in distribution arrangements in major markets that limit our ability to market or sell our products;

* increases in the price of energy or raw materials, including grapes, grain, wood, glass, plastic, and agave;

* excess wine inventories or a world-wide oversupply of grapes;

* termination of our rights to distribute and market agency brands included in our portfolio;

* counterfeit production of our products could adversely affect our intellectual property rights, brand equity and operating results;

* adverse developments as a result of state investigations of beverage alcohol industry trade practices of suppliers, distributors and retailers.