Chalone Wine Group Obtains $70 Million in Unsecured Financing.

NAPA, Calif.--(BUSINESS WIRE)--April 23, 1999--

Thomas B. Selfridge, president and CEO of Chalone Wine Group, Ltd. (NASDAQ: CHLN) announced that effective March 31, 1999, Chalone moved its borrowings to Rabobank, which will provide an aggregate of $70,000,000 of available unsecured financing to the Napa-based wine company.

With an increase in available funds to Chalone of approximately $40,000,000, and a change from secured to unsecured financing, this new borrowing structure poises Chalone for its growth plans. Francois Muse, (Acting) Chief Financial Officer for Chalone, explained,

his
new borrowing structure will not only enable us to keep moving ahead
as intended, but will also provide us with the increased flexibility
necessary in accessing further financial markets in the future.*
Chalone maintains positive relationships with both Wells Fargo and
Rabobank, keeping its demand deposit accounts with Wells Fargo.
     The Chalone Wine Group is a Napa-based company that produces,
markets and sells premium white and red varietal table wines. In
California, the company owns and operates Chalone Vineyard in Monterey
County, Acacia Winery in the Carneros District of Napa County,
Carmenet Vineyard in Sonoma County and, in conjunction with its
joint-venture partner, Paragon Vineyard Co., owns and operates Edna
Valley Vineyard in San Luis Obispo County. Additionally, the company
produces and markets wines of Central Coast appellation under the
brand name Echelon Vineyards. In the State of Washington, the Company
owns a 51% interest in Canoe Ridge Vineyard. In the Bordeaux region of
France, the company owns 24% of the fourth-growth estate of Chateau
Duhart-Milon, in partnership with Domaines Barons de Rothschild
(Lafite) who own the other 76%.
     From time to time, information provided by the Company,
statements made by its employees or information included in its
filings with the Securities and Exchange Commission as well as its
statements to the press (including this earnings release) may contain
statements which are not historical facts, so called *forward looking
statements,* which involve risks and uncertainties. Forward looking
statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. When used in this
earnings release, the terms *planned,* and other similar terms as they
relate to the Company or its management are intended to identify such
forward looking statements. Factors that may cause such differences
include, but are not limited to: (i) future weather and general
farming conditions affecting annual harvest quantity as well as
quality; (ii) variations in market taste as well as demand; (iii)
changes in the wine industry regulatory environment. Each of the
factors, and others, are discussed from time to time in the Company*s
filings with the Securities and Exchange Commission including the
Company*s annual report on Form 10-K for the year ended March 31,
1998, and subsequent quarterly reports on Forms 10-Q.