Chalone Vineyard Eco-Friendly Case Partitions Win International Design Award.

Business Editors/Food & Wine Writers

SOLEDAD, Calif.--(BUSINESS WIRE)--May 8, 2002

The international design magazine I.D. has selected Chalone Vineyard's eco-friendly case partitions as a Design Distinction winner in the Packaging category in its 2002 Annual Design Review. Started in 1954, the review is America's largest and most prestigious juried design-recognition program. The winning designs will be featured in the August issue of the magazine.

In early April, Chalone Vineyard released its first-ever Syrah and used cases containing a new partition system made from 100-percent recycled paper. The paper used to make this innovative packaging comes from Chalone Wine Group's (Nasdaq:CHLN) own discarded office paper and newspapers. In addition to using recycled paper, the eco-friendly partitions do a better job then standard partitions in preventing bottle labels from being scratched and torn.

Regale Corporation in Napa designed the eco-friendly case partitions and manufactures them using its patent-pending tooling and manufacturing process. Because the partitions completely enclose each bottle from the top, Regale calls the partition a wine shroud. Regale's raw materials are 100-percent post-consumer paper waste, such as corrugated boxes, newsprint and office paper, and water. Chalone Wine Group periodically sends all of its old office memos and newspapers to Regale to be used in making the eco-friendly case partitions. The process converts 22 pounds of waste paper into 66 sets of case partitions.

Molded fiber has been used for packaging since the 1890s; the traditional egg carton is the most well known example. However, its large volume requirements and high tooling costs have made it virtually impossible for smaller industries to use molded fiber packaging.

The advantages of Regale's revolutionary process are that it cuts tooling costs by 90 percent; tools are built in two to three days versus two to three months; tool change time is reduced from hours to minutes and the company's drying process cuts by 40 percent the amount of heat needed to finish materials. For Chalone Vineyard, the new partitions reduce costs, eliminate label scuffing, require fewer assembly pieces per case and lower overall case weight, compared to cartons used in the past. Eventually, all of Chalone Vineyard's estate wines will be shipped in this eco packaging.

"We worked with Regale for several years to get it exactly right because we think this partition is the future for protecting wine bottles," said Tom Selfridge, President of Chalone Wine Group. "This award confirms how innovative our packaging is."

Note to Editors: Digital images are available of the eco packaging and the process of making the partitions. Contact Ken Morris at [e-mail].

Chalone Vineyard(R) in Monterey County is owned by Chalone Wine Group, Ltd., a Napa-based company specializing in premium red and white varietal wines. In California, the Company also owns and operates Moon Mountain Vineyards, Carmenet(R) Vineyards, and Dynamite Vineyards in Sonoma County; Acacia(TM) Winery in the Carneros District of Napa County, and Provenance Vineyards(TM), Hewitt Vineyard and Jade Mountain in Napa County. In conjunction with its 50 percent joint-venture partner, Paragon Vineyard Co., the Company also owns and operates Edna Valley Vineyard(R) in San Luis Obispo County. Additionally, the Company produces and markets wines of Central Coast appellation under the brand name Echelon Vineyards. In Washington State, the Company owns and operates Sagelands Vineyard(TM) and Canoe Ridge Vineyard(R). In the Bordeaux region of France, the Company owns 23.5 percent of the fourth-growth estate of Chateau Duhart-Milon, in partnership with Domaines Barons de Rothschild (Lafite) which owns the other 76.5 percent. For more information about CWG, visit www.chalonewinegroup.com