“PARTNERS IN WINE”

ABOUT PRECEPT BRANDS

MISSION AND VISION

Precept Brands MissionTo be a leader in branding and selling wine brands by

being a magnet that attracts and retains great people and engages the best distributors with great products,

services and mutually beneficial relationships.

Precept Brands VisionA top 20 wine company in the world based on profitability

with brands identified with quality and value by our distributors, channel partners and consumers.

CORE VALUESCreate high quality, long-term relationships with employees, customers,

shareholders, suppliers, and the communities in which we do business.

Earn trust consciously through open communication, fairness andpersistent action for mutual benefit.

Produce our individual and collective best, consistently growingin our capability to do so.

Respect the opinions and individuality of everyone on the team and fosteran environment of enthusiasm, commitment, and cooperation

for positive results.

Be accountable for growth, profit and results and responsible for our actions.Provide the highest quality and value for our customers’ dollar

WHAT WE DOPrecept Brands is a wine company that develops and purchases wine brands. We are passionate about making great wine and great brands. It is our passion for wine and what wine is about that gives us our

competitive edge and makes this a great place to work.

• Category Focus: Research the category of opportunity & the consumer’s fundamental want(s). Present findings to key distributors and channel partners to obtain buy in.

• Profit: Run financial profile to determine extent of profit opportunity for Precept, distributors and channel partners. Evaluate full effect of new brands to all Precept departments and partners. Proceed only after evaluations come back with “green light.”

• Wine: Work with quality wine producers to produce the BEST wine for the target audience. Example – Merlot consumers who want a retail wine for around $10 retail that delivers a rich berry- smooth oak quality wine. Precept will contract producers and blend wines to get to the price point and quality level that will excite that consumer.

• Packaging: Continually focus on consumer wants and likes to put out strong packaging statements within each brands competitive wine set.

• Relationships: Maximize Precept’s relationship with distributors and channel partners to fulfill distribution on brands and sales velocity targets for each brand. Implement point of distribution sales plan quickly and effectively.

• Marketing and Public Relations: Work with distributors, channel partners and consumers to develop and implement fun and stimulating marketing programs. Work with the press to get Positive third party endorsement of brands. Continually re-invent excitement and marketability of brand. Create and maintain brand champions throughout the channel as brands develop marketplace appeal.

• Customer Service: Provide customers with fast and precise information: pricing, accounting, financials and inventory status by brand and sku.

• Acquisitions: Find opportunities that work financially and strategically throughout the wine industry.

from Washington State:

from Australia / New Zealand: from Europe:

Presents Products

WASHINGTON WINES

• Appellation: Columbia Valley, Washington

• Varieties/Mix:– Chardonnay 17.5%– Merlot 17.5%– Glacier White 12.5%– Cabernet Sauvignon 12.5%– Syrah 10%– Red Blend 10%– Sauvignon Blanc 10%– Gewurztraminer 5%– Riesling 5%

• Current Vintages: 2002/2003• Size: 750 ml• Price Positioning: SRP $8• Competitive Set: Columbia Crest• Channel Mix:

Off Premise – 70%, On Premise – 30%

Avery Lane 5 Year Model

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Avery Lane

• 88 Best Buy 2002 Riesling

• 87 Best Buy 2001 Cabernet Sauvignon

• 87 Best Buy 2002 Gewurztraminer

• 87 Best Buy NV Red Blend

• 85 Best Buy 2001 Sauvignon Blanc

• 85 Best Buy 2001 Chardonnay

• 85 Best Buy 2001 Merlot

Avery LaneAcclaim

7 Varieties Submitted = 7 BEST BUYSBest of Year Buying Guide

“This brand was launched recently and promises to be a hot one for bargain lovers.”

- San Francisco Chronicle

“In the world of $8 (Wines) they are sound, stylish and varietally correct.” - Paul Gregutt, Seattle Times

“Wine Pick of the Week” Richard Kinssies, Seattle P.I.

Top 100 Best Buys of 2003 #77 2001 Cabernet Sauvignon

Wine Enthusiast will be publishing the ratings and reviews in the Best of Year Issue (on-sale December 10).

“A Washington State producer with a remarkable commitment to value…” – Food & Wine Magazine, April 2004

2001 Merlot 91 Points, Good Value The Wine Report, March 2004

86 Points Wine Spectator, April 2004

• Appellation: Columbia Valley, Washington • Varieties/Mix

– Chardonnay 20%– Late Harvest Riesling 10%– Merlot 18%– Riesling 5%– Cabernet Sauvignon 15%– Gewurztraminer 5%– Syrah 9%– Rainier Red 9%– Rainier White 9%

• Current Vintages: 2002/2003• Size: 750 ml• Price Positioning – SRP low tier $7, high

tier $8• Competitive Set – Hogue • Channel Mix: Off Premise – 70%, On

Premise – 30%

WA Hills 5 Year Model

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Washington Hills

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Washington Hills

Washington Hills

2002 Merlot

2001 Syrah

86 Points -Wine Spectator

Best Buys: Red Wines“Recommended” -Wine Press Northwest

Top Five Wine Picks – “Highly recommends 2001 Syrah” (XX). -Wine X Magazine

Best Buys: Red Wines “Outstanding!”Wine of the Week. -Wine Press Northwest

Recent Releases, Best Buys: White Wines2003 Late Harvest Riesling – “Outstanding!”2003 Riesling – “Recommended”2002 Chardonnay – “Recommended” -Wine Press Northwest

• BRAND: Washington Hills• VINTAGE: 2003• VARIETY: Merlot and Chardonnay• APPELLATION: Columbia Valley• 9L CASES PRODUCED: 10,000• PACKAGE: Available in 4 pack (12L)• SRP: $19.99• TIMING: October 2004

Washington HillsWashington HillsBag-in-the-BoxBag-in-the-Box

Washington HillsWashington HillsBag-in-the-BoxBag-in-the-Box

Introducing the new Washington Hills Bag-in-the-Box. The packaging will showcase an

illustration of “The Vineyard Hills of Columbia Valley” on the front and sides of the box, with

brand information and Washington State Appellation Map featured on the back. Like the

new case shipper, this packaging will be visually impacting when displayed. Top: Chardonnay, side and back. Bottom:

Merlot, side and back.

• Appellation: Columbia Valley, Washington

• Varieties/Mix

– Merlot 100%

• Current Vintages: 2001

• Size: 750 ml

• Price Positioning – SRP $10

• Competitive Set – Blackstone

• Channel Mix: West: Off Premise – 60%, On Premise – 40% East: Off Premise – 50%, On Premise – 50%

Pavin & Riley 5 Year Model

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Pavin & Riley

86 PointsBest of Year Buying Guide

2001 Merlot

Wine Press NorthwestBest Buys: Red Wine “Recommended”

The Wine Report89 Points Wine Spectator

“Best Value”86 Points

• Appellation: Columbia Valley, Washington

• Varieties/Mix– Syrah 100%

• Current Vintages: 2001• Size: 750 ml• Price Positioning – SRP $10• Competitive Set – Columbia

Crest Grand Estate Syrah• Channel Mix:

West: Off Premise – 60%, On Premise – 40% East: Off Premise – 50%, On Premise – 50%

Barrelstone 5 Year Model

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Barrelstone

Barrelstone

86 PointsBest of Year Buying Guide

2001 Syrah

Wine Press NorthwestBest Buys: Red Wines

“Recommended”

• Appellation: Washington & Oregon• Varieties/Mix

– Chardonnay (WA) 20%– Pinot Gris (OR) 20%– Pinot Noir (OR) 20%– Cabernet Sauvignon (WA) 15%– Merlot (WA) 15% – Syrah (WA) 10%

• Current Vintages: 2002• Size: 750 ml• Price Positioning – SRP $12• Competitive Set – Chateau Ste

Michelle• Channel Mix: • West: Off Premise – 80%, On Premise

– 20% East: On Premise – 100%

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Sockeye

Sockeye

“This is one of six labels in Washington under which Precept Brands markets wine, and there is a lot to like about this release. The nose includes black currents, blueberries, blackberries, vanilla, toasted oak, tea, tobacco and a bubble gum note. The flavors are those of dried blackberries, vanilla, oak and cedar, and the tannin structure makes this a quaffable, everyday drink, especially at the price.”

Wine Press Northwest2001 Cabernet Sauvignon

2001 Chardonnay“Precept Brands has exploded onto the wine scene in the past year with thousands upon thousands of cases of high-quality, affordable wines. This Chardonnay, made in the Yakima Valley, reveals aromas and flavors of oak, fresh apples, sweet lemons and limes. A food-friendly white with a creamy midpalatte and minerally finish.”

GOLD MEDAL2001 Cabernet Sauvignon

LA County Fair Wine Competition

• Appellation: Washington State

• Varieties/Mix– Merlot – Chardonnay– Shiraz

• Current Vintages: 2002/2003• Size: 750 ml• Price Positioning – SRP $6• Competitive Set – California

Coastal’s• Channel Mix:

Off Premise – 80%, On Premise – 20%

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AUSTRALIA / New Zealand

• Appellation: McLaren Vale, Australia

• Varieties/Mix– Shiraz 90%– Cabernet Sauvignon 10%– D Block Reserve Shiraz

• Current Vintages: 2001/2002• Size: 750 ml• Price Positioning – SRP $20• Competitive Set – D’Arenberg

The Footbolt (US Sales 75k cases)

• Channel Mix: Off Premise – 60%, On Premise – 40%

Shingleback 5 Year Model

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Acclaim

Shingleback2001 Shiraz

92 Points -Wine & Spirits

92 Points -The Adelaide Review

90 Points -Wine Spectator

4 ½ Stars -Winestate Magazine

GOLD MEDAL -2003 Royal Queensland Wine Show

SILVER MEDAL -2003 Royal Sydney Wine Show

Top 5 placings of its award category for “Wine of the Year” -Winestate Magazine

“Very Highly Recommended” -Dan Berger’sVintage Experiences, May 15, 2003

“From McLaren Vale, this is concentrated and spicy,with bright, tart fruit.” Paul Gregutt, Seattle Times. September 2003.

Top 5 Wine Picks, “Highly Recommended” (XX)Wine X Magazine.

SILVER MEDAL 2002 Cabernet SauvignonLA County Fair Wine Competition, 2004

2001 D Block Reserve Shiraz

5 Stars -Winestate MagazineBest Shiraz in Show Trophy-2002 Royal Hobart Wine ShowBest Red Wine in Show Trophy-2002 Royal Hobart Wine ShowSILVER MEDAL-2002 McLaren Vale Wine Show

• Appellation: McLaren Vale, Australia

• Varieties/Mix– Shiraz 100%

• Current Vintages: 2001• Size: 750 ml• Price Positioning – SRP $32• Competitive Set – D’Arenberg

Dead Arm Shiraz• Channel Mix:

Off Premise – 30%, On Premise – 70%

The Gate

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The Gate

One Good BottleThe Gatekeeper McLaren Vale Shiraz 2001.A gentlemanly shiraz, almost reticent at first but then quickly opening into something that is seamless and complex, with Provençal herbs in the nose and cherries, anise, and fine-tuned oak on the palate. –The Editors, Saveur, April 2004.SILVER MEDAL -San Diego National Wine Competition, 2004

• Appellation: McLaren Vale, South Australia

• Varieties/Mix– Shiraz 55%– Cabernet Sauvignon 45%

• Current Vintages: 2002/2003• Size: 750 ml

• Price Positioning – SRP $12• Competitive Set – Rosemount

Diamond Shiraz & Cab• Channel Mix:

Off Premise – 80%, On Premise – 20%

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Red Knot

• 2002 Shiraz– 87 Points “Best Value” – Wine

Spectator– Good Value – Wine & Spirits– Gold Medal – Royal

Queensland Wine Show 2003– "highly recommended" (XX) –

• Wine X Magazine, October 2003

• 2002 Cabernet Sauvignon– 88 Points “Best Value” – Wine

Spectator– 3 Stars – Winestate Magazine

Red KnotAcclaim

White Knot

• BRAND: White Knot• VINTAGE: 2004• VARIETY: Chardonnay• APPELLATION: McLaren Vale• 9L CASES PRODUCED: 5,000• PACKAGE: Available in 12 pack • WINEMAKER: John Davey• SRP: $11• TIMING: October 2004

Introducing White Knot. White Knot is the sister brand to the big, bold red wines of the highly acclaimed Red Knot Winery. Red Knot and White Knot bring together the best of Australia – big, bold red whines and vibrant whites that offer an incredible bang-for-the-buck! Relying on high quality grapes from the McLaren Vale, White Knot is produces Chardonnay that is rich in flavor and filled with distinctive regional and varietal characteristics.

Fauna

Appellation: Marlborough, New ZealandVarieties: Sauvignon Blanc, Pinot NoirCurrent Vintages: 2003Size: 750 mlPrice Positioning: SRP $12Cases Produced: 4,000Competitive Set:Channel Mix: Off Premise – 30%, On Premise – 70%Timing of Launch: Early 2005

Europe

• Appellation: Spain• Varieties/Mix

– Tempranillo 70%– Valencia White 30%

• Current Vintages: 2003• Size: 750 ml• Price Positioning – SRP $7• Competitive Set – Yellowtail• Channel Mix:

Off Premise – 80%, On Premise – 20%

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El Paseo

• BRAND: Red Beret• VINTAGE: 2003• VARIETY: Cotes du Rhone• APPELLATION: Cotes du

Rhone• 9L CASES PRODUCED: 4,000• PACKAGE: Available in 12 pack • WINEMAKER: Denis Gayte• VINEYARD: Domazan• Wine Blend: The Red Beret

blends consists of about 40% Grenache Noir, 30% Syrah, 20% Carignan and 10% Cinsault

• SRP: $11• TIMING: October 2004• UPC Code: 8 57846 00110 0

The 2003 Vintage in France was marked by an extremely hot and dry summer adding great concentration to our grapes. These are summers that Côtes du Rhône grapes love and will respond by showing remarkable fruit, color and structure in the wine.

Denis Gayte was born in Seattle from an American mother and a French father, an immigrant from Avignon, in the Southern Rhone region of France. After graduating from WSU, Denis enrolled in Agriculture school in France and completed an apprenticeship with a large Chateauneuf-du-Pape winery.

The vineyard at Domazan is situated in the famed wine growing region of Cotes du Rhone. The domain in approx. 12 hectares in size and features a variety of red wine grapes, specifically Syrah and Grenach Noir. With its magnificent terroir, including a large portion covered with “Red Galets” or large rounded rocks, the Red Beret vineyard benefits from a remarkable range of soils and landscapes adding richness and character to this wine. The wine begins with a complex nose that is powered with fresh fruit (red ripe cherries), rich scents of vanilla, dark cassis and licorice.

• BRAND: Bloom• VINTAGE: 2003• VARIETY: Riesling• APPELLATION: Mosel Saar Ruwer,

Germany• 9L CASES PRODUCED: 10,000• PACKAGE: Available in 12 pack• Closure: Stelvin (Pink) • SRP: Core Line: $7, Reserve: $10• TIMING: October 2004• UPC Code: 8 57846 00120 9

With aromas of peaches and honeysuckle giving way a pleasing

palate full of sweetness and acidity, Bloom Riesling is a unique delight

when it’s poured in the glass! Serve this wine chilled for a crisp and

refreshing experience.

Riesling – the most important variety grown in the Mosel region, considered by experts to be the most noble white

grape in the world. Unlike any other variety, the late-ripening Riesling produces wines of great elegance and finesse which nevertheless have a pronounced and racy

fruitiness.

Riesling's ancestral home is Germany and Bloom brings out all of the characteristics that make this grape famous amongst wine

enthusiasts. Serve this wine chilled for a crisp and refreshing

experience.• BRAND: Bloom Reserve• VINTAGE: 2003• VARIETY: Riesling• APPELLATION: Mosel Saar Ruwer,

Germany• 9L CASES PRODUCED: 3,000• PACKAGE: Available in 12 pack • Closure: Stelvin (Silver)• SRP: Core Line: $7, Reserve: $10• TIMING: October 2004

2003 Harvest Report: The 2003 vintage is unique for the Mosel wine producers. Even senior winegrowers cannot remember such high

temperatures and stable weather conditions that they experienced last summer. They had the earliest harvest in history resulting in record sugar

levels in the grapes as well.