The Chalone Wine Group Enters into Confidentiality and Standstill Agreements.

NAPA, Calif. -- Agreements are with Domaines Barons de Rothschild (Lafite) SCA, Huneeus Vintners LLC and Constellation Brands, Inc. in Connection with the Proposed Acquisition of Chalone by Domaines Barons de Rothschild

The Chalone Wine Group, Ltd. (Nasdaq:CHLN) today announced that it has entered into confidentiality and standstill agreements with each of Domaines Barons de Rothschild (Lafite) SCA (DBR), Huneeus Vintners LLC and Constellation Brands, Inc. The agreements related to DBR's proposed acquisition of all of Chalone's outstanding publicly held shares of common stock at $9.25 per share in cash. The independent committee of Chalone's board of directors has indicated to DBR that it currently expects to respond to DBR's proposal prior to the end of July 2004. The independent committee has retained Thomas Weisel Partners as its financial advisor in connection with this evaluation.

The Chalone Wine Group, Ltd., is a Napa-based company specializing in premium red and white varietal wines. In California, the Company owns and operates Acacia(R) Vineyard in the Carneros area of Napa County, and Provenance(R) Vineyards, Hewitt Vineyard and Jade Mountain(R) in Napa County; Chalone Vineyard(R) in Monterey County; Moon Mountain(R) Vineyard in the Sonoma Valley; Orogeny(TM) Vineyards in Russian River Valley's Green Valley; Dynamite(R) Vineyards in Lake County and Echelon Vineyards in San Miguel. 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. In Washington State, the Company owns and operates Sagelands(R) Vineyard and Canoe Ridge(R) Vineyard. 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.

This press release contains forward-looking statements within the meaning of the federal securities laws, including statements regarding the Lafite proposal. These statements involve risks and uncertainties that could cause actual results and events to differ materially. A detailed discussion of other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in Chalone's periodic filings with the Securities and Exchange Commission, including Chalone's quarterly report on Form 10-Q for the quarter ended March 31, 2004. Chalone undertakes no obligation to update forward-looking statements to reflect events or uncertainties occurring after the date of this press release.