Millennium Import Company, Importers of Belvedere and Chopin Vodkas, File Motion for Preliminary and Permanent Injunction Against Grey Goose Vodka Advertising.

Business Editors

MINNEAPOLIS--(BUSINESS WIRE)--Jan. 26, 2004

New Motion Follows Stunning Results of Consumer Perception Survey

Millennium Import Company, importers of Belvedere and Chopin vodkas, filed a motion Friday, January 23rd, for a preliminary injunction against Sidney Frank Importing Company, makers of Grey Goose vodka, to enjoin Sidney Frank's further use of its current Grey Goose advertising campaign claiming to be the best tasting vodka in the world.

Millennium's federal lawsuit in the United States District Court for the District of Minnesota against Sidney Frank (Case No. 03-5141 JRT/FLN), filed on August 28, 2003, accuses the makers of Grey Goose vodka of false advertising, consumer fraud, and trade libel with regard to its advertising claims, which are based upon an outdated and superceded 1998 taste test, that Grey Goose is the best tasting vodka in the world.

The new motion for Preliminary Injunction follows the results of a consumer perception survey, which directly contradicts any assertion by Sidney Frank that its false advertisements merely present the results of the 1998 test and are not making a claim concerning current taste test scores. According to Millennium's brief, "the results of the survey of 254 vodka drinkers demonstrate that the Grey Goose False Advertisements communicate the false message to consumers that Grey Goose vodka currently ranks substantially higher than Belvedere vodka in taste testing. Of the 254 respondents...when asked specifically if they believed that the list of brands in the advertisement communicated something currently, as opposed to something about some past time or period, 50% of all respondents interviewed indicated that the advertisement communicated to them something current about the list of vodka brands in the print advertisement." The survey was conducted by Dr. Alex Simonson, a leading survey expert.

"Grey Gooses' false and misleading advertising has been going on far too long and consumers are being hurt," said Millennium President, Steve Gill. "This survey, and its stunning results, is just the latest example of that fact."

Indeed, originally, Millennium challenged Sidney Frank's advertisements with the National Advertising Division (NAD), which decided in Millennium's favor. Sidney Frank appealed this decision to the National Advertising Review Board (NARB), which concurred with the NAD's decision and found that Sidney Frank's advertisements for its Grey Goose product are "inaccurate and misleading" for consumers. The NAD and NARB are self regulatory arms of the Council of Better Business Bureaus and are widely regarded as leaders in the field of self-regulation with a compliance rate of nearly 100%.

However, even though both of these panels independently found that Sidney Frank's advertising was misleading, Sidney Frank has refused to comply with the NAD's and NARB's directive to discontinue or modify their ads. As such, in September last year, the NARB issued letters referring the matter of Sidney Frank's non-compliance and misleading advertising practices to the Federal Trade Commission (FTC) and the Alcohol and Tobacco Tax and Trade Bureau (TTB). Those bureaus' investigations into Sidney Frank's false and misleading trade practices are on-going.

"The entire industry and consumers have been misled by Grey Goose's deceptive and misleading advertising campaign," explained Gill. "It's a shame that Sidney Frank insists on continuing their game of deception. Two well respected organizations and actual consumers have all found the Grey Goose ads to be misleading, and we're looking forward to our day in court and to having the TTB and FTC enforce the NARB and NAD's rulings."

Steve Gill, Millennium's president is available for interviews as are Doug Wood and Peter Raymond, partners in the law firm Hall Dickler LLP, Millennium's legal counsel. To arrange interviews or request of copy of the newest brief, please contact John Hellerman (202.966.5253; [e-mail]) or Spencer Baretz (212.572.9617; [e-mail]).