Total Wine Sales
Reach Three Million Cases Milestone

Stimson Lane Vineyards & Estates, the Northwest's largest producer of premium wines, reported today that 2001 was a banner year for the company. Revenue hit an all-time high of $188.9 million, up 8.2 percent year over year. The wine company's profits were $21.2 million in 2001, an increase of 22.1 percent over the previous year.

Core case sales increased 11.1 percent based on strong demand for Chateau Ste. Michelle and Columbia Crest. Case sales for Chateau Ste. Michelle were up 9.3 percent and up 13.7 percent for Columbia Crest.

``We had a great year in 2001 considering the challenging environment, including the impact on the hospitality business of the tragic events of September 11,'' said Ted Baseler, President and CEO of Stimson Lane. ``We remain confident that we will continue to produce accelerated growth in sales and operating profit in the year ahead.

``It was especially gratifying in 2001 to see our strategic plan produce strong results. Our focus on our flagship brands in Washington State and our commitment to quality and customer service are the main drivers,'' Baseler continued.

``It was also gratifying to have three wines on the Wine Spectator's `Top 100' list in 2001, including the highest ranked white wine in the world, our 1999 Cold Creek Chardonnay (SOLD OUT). Washington State is emerging as one of the leading wine regions of the world, as evidenced by that designation recently by Wine Enthusiast magazine, and Stimson Lane is pleased to be leading the way for our region.''

In 2001, Stimson Lane grew revenue while being more cost efficient. That focus included the sale of Stimson Lane's microbrew business, Yakima Brewing and Malting Company.

``We are poised to make more gains in 2002,'' said Baseler, ``but of course everyone in the wine industry must wait and see what the impact of the economic slowdown will be on our business.

``We are looking forward this year to the grand opening of our new winery in Walla Walla, WA, for Northstar, our ultra-premium Merlot. Additionally, a major new product thrust in 2002 will be the rapid expansion of Syrah for Chateau Ste. Michelle and Columbia Crest,'' said Baseler.

Washington State is widely recognized for producing powerful Syrahs. In a ranking of American Syrahs last fall, Wine Enthusiast magazine named three from Washington among the top five, including Columbia Crest's 1998 Reserve Syrah (now into the 99 vintage from Avalon, and an excellent wine)..

Stimson Lane is the oldest wine company in the Northwest, and also the most acclaimed by wine critics. The roots of the company go back to 1934 and the end of Prohibition. Today, its oldest winery, Chateau Ste. Michelle, has become a major tourist destination in the Seattle area. Its Columbia Crest winery in Paterson anchors the company's grape-producing and winemaking efforts in eastern Washington. Also in eastern Washington is Chateau Ste. Michelle's River Ridge winery.

Stimson Lane owns more than 3,000 acres of vineyards and has contracts for premium wine grapes on another 12,000 acres. The company also has a leading viticulture and winemaking research facility and is leading the way in establishing an academic program at Washington State University similar to the one at University of California-Davis to train viticulturists and winemakers.

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