Stimson Lane Changes Name to Reflect Rich History and Vision.

Business Editors

WOODINVILLE, Wash.--(BUSINESS WIRE)--May 17, 2004

Stimson Lane Ltd. announced today it is changing its name on June 1 to Ste. Michelle Wine Estates to better reflect its rich history and its vision.

The Northwest wine company, which in the past five years has had 17 wines on Wine Spectator's influential "Top 100" list, has a portfolio of seven wines in Washington State, led by Chateau Ste. Michelle and Columbia Crest.

Also in the Ste. Michelle Wine Estates Washington portfolio are: Northstar, its ultra-premium Merlot from Walla Walla; Col Solare, an ultra-premium red wine made with Piero Antinori of Tuscany; Eroica Riesling, made with Ernst Loosen of Germany; as well as Snoqualmie wines and Domaine Ste. Michelle sparkling wine.

The company also owns Conn Creek, an icon winery, one of the original cult Cabernets from Napa Valley, California, as well as Villa Mt. Eden, bonded in 1881, a California winery that focuses on Chardonnay, Pinot Noir and Cabernet Sauvignon.

"Ste. Michelle Wine Estates reflects the roots of our flagship winery, Chateau Ste. Michelle, which go back to the beginning of the premium wine business in America," said Ted Baseler, President and CEO of Ste. Michelle Wine Estates.

Several companies going back to the end of Prohibition combined to form Chateau Ste. Michelle, and the first wine under the Chateau name was in 1967. In 1974, at a noted blind tasting of Rieslings in Los Angeles, Chateau Ste. Michelle's 1972 Johannisberg Riesling won top honors, putting Washington State on the map as a wine region.

Ste. Michelle Wine Estates continues to be the leader of Washington State's emerging wine growing region. Washington State wines are available in more than 60 countries. The state's wineries, all of which focus on top-quality wines rather than jug wines, today number 275. Two decades ago, there were only 45.

This growth was led by Ste. Michelle Wine Estates, and to further achieve its vision, the company is focusing even more on its vineyards.

The company is a leader in sustainable agriculture methods, including the efficient use of water, minimum pesticide use and the year-round care of the soil of its vineyards. Ste. Michelle Wine Estates will also expand its acreage of organic vineyards.

Its holdings include the benchmark vineyards Cold Creek, planted in 1973, Chateau Ste. Michelle's Canoe Ridge Estate Vineyards and Horse Heaven.

During the past two years, the company has added 20 people to its sales force nationwide and stepped up efforts to serve export markets, including Great Britain, Japan and Canada.

"We are bullish on Washington State and the premium wine business," said Baseler. "Our vision is to produce a portfolio of unique wines from the super-premium price segment up, and to distribute them throughout the world, from small, hand-crafted wines to high-volume offerings such as Columbia Crest Grand Estates Chardonnay, No. 16 on the Wine Spectator's 'Top 100' list in 2002."

Since Baseler became president in June 2000, the profitability of Ste. Michelle Wine Estates improved in 2001 and 2002. In 2003, inexpensive imports and industry oversupply led to declined earnings, but the company still performed above the category. Operating profit for the first quarter of 2004 was up 9.3 percent compared to the first quarter of 2003.

One significant aspect of this performance has been the decision to focus the company on its core brands in Washington State. But Baseler said the company has exciting plans for its two California wineries.

"Washington wines are more popular than ever, including Riesling," said Baseler. "We continue to be the No. 1 Riesling producer in America, and in recent years we created Eroica, a super-premium Riesling made in partnership with acclaimed German winemaker Ernst Loosen.

"This is a great time for our company," said Baseler, "and we look forward to Ste. Michelle Wine Estates continuing to be a leader."

Stimson Lane Ltd. is a second tier subsidiary of UST Inc. (NYSE:UST).