Codorniu Group of Spain, Owners of Artesa Winery Acquires A.V. Imports and Appoints New Management.

NAPA VALLEY -- The Codorniu Group, one of the world's leading sparkling and still wine producers, and owners of Napa Valley's Artesa Winery, announced its recent acquisition of A.V. Imports, Inc., a 20 year-old Washington, DC/Baltimore-based importer of fine wine and spirits, as part of an aggressive plan to solidify Codorniu's commitment to the US market and reinforce its position as a major wine and spirits industry player both here and abroad.

The purchase price of A.V. Imports, Inc. is for an undisclosed amount, but estimated to be a multi-million dollar deal. With its acquisition by Codorniu, effective October 11, 2007, the company will be renamed A.V. Brands; 32-year industry veteran Mike Kenton will be appointed CEO of Codorniu's US Operations (based in Napa). For the past 11 years Kenton has been President of Artesa Winery. In February 2006, he was promoted to the position of Chief Commercial Director in charge of global sales and marketing operations for the parent company in Barcelona reporting to Codorniu CEO, Xavier Pages. Kenton is also a team member of the Codorniu Group's Executive Committee in Spain. He will continue special assignments for the Group from his home base. Kenton held senior sales and marketing management positions with Gallo, Chateau St. Jean Winery, and Seagram's before joining Codorniu.

Assuming the role of President of AV Brands is Roy Danis. Danis will be responsible for day to day operations, reporting to Kenton. Danis has 29 years of sales and marketing experience in the beverage industry. During his tenure as Executive Vice President of Sales and Marketing for W.J. Deutsch & Sons, Ltd. (family wine importer based in New York), company sales increased from one million cases to over 10 million cases today. At the same time, the sales group grew from 12 people to the current team of over 100 and its marketing staff increased as well. While at Deutsch, Danis was intimately involved with the Yellow Tail brand, one of the most successful wine brands to appear on the US market. Danis began his career with The Seagram Company, advancing through various sales and marketing positions, including time at their Tropicana Division. He later went on to hold Regional Vice President of Sales positions at the Paddington and IDV Corporations. He also held the position of Vice President Sales and Marketing at Pernod Ricard. Together, Kenton and Danis bring to A.V. Brands 60 years of management experience in the beverage industry.

Explaining Codorniu's strategy, Kenton stated, "Importing and marketing the great producers in the AV Brands' portfolio allows us to provide added value and profit for our current distribution network partners. The acquisition of A.V. Imports gives Codorniu a major strategic platform in the US." He continued, "A.V. Brands does not strive to be the biggest marketing company, but it does intend to be among the best. We will focus primarily on organic growth of current partners along a path that guarantees our ability to maintain the highest level of performance. Strategic acquisitions of additional prestigious brands will also be a part of our growth plans."

A milestone for the Codorniu Group in the U.S. occurred in 1991 with the opening of what was then called Codorniu Napa, producing sparkling wines. Codorniu invested $30 million dollars and spent two years constructing the ground-breaking structure that is today one of Napa's most stunning wineries. In 1997, after a complete retooling and reconfiguration of its sparkling production equipment into still wine producing facilities, as well as vineyard acquisitions in the finest growing areas of Napa (investments totaling $20 million), the Artesa Winery was launched. Artesa is currently an award-winning 100,000-case still winery with 400 acres of planted vineyards on both sides of the Mayacamas Mountains: in Napa's Carneros and Atlas Peak appellations, and in Sonoma's Alexander Valley.

A.V. Imports, formerly owned by founding partners Ron Wollman and Albert Pecora, ranks among the top 20 importers in the U.S. by dollar volume. Their portfolio of fine wines and spirits includes top Italian Pinot Grigios Ca' Montini, Luna di Luna, and Voga; Piccini Tuscan wines; Terras Gauda Albarino from Rias Baixas, Spain; Caliterra from Chile; Tio Pepe Sherry from Spain; and Camus Cognac from France. Current sales are approximately 1,000,000 cases annually.

In addition to A.V. Brands, the Codorniu Group owns eleven still and sparkling wineries in some of the world's most prestigious regions such as Rioja and Priorat (Spain), Napa Valley (California), and Mendoza (Argentina). Owned entirely by the Raventos family since the 16th century, the Codorniu Group produces quality cavas and fine still wines as follows: Codorniu (D.O. Cava), Abadia de Poblet (D.O. Conca de Barbera), Bach (D.O. Penedes), Bodegas Bilbainas (D.O.Ca. Rioja), Cellers Scala Dei (D.O.C. Priorat) and Legaris (D.O. Ribera del Duero), Raimat (D.O. Costers del Segre), Nuviana (Valle del Cinca), Rondel (D.O. Cava), Artesa (Napa Valley, California), and Septima (Mendoza, Argentina). Codorniu is also the leader in both value and volume in the Spanish cava market. The Group's current turnover is approximately $350 million US with six million combined case sales.