1. Central Calif. Winegrowers and Calif. Assoc. of Winegrape Growers 2006 Winegrape Symposium San Joaquin Valley Grapes “San Joaquin Valley Grapes = Quality Value Wine” November 29 th and 30 th, 2006 Pardini’s, Fresno, California

2. How is the SJV poised to compete? What must we do? Greg Livengood, Joseph W. Ciatti Co., LLC San Rafael, CA 415/458-5150 www.ciatti.com

3. USA vs. World USA 8% of Production USA 5% of Vine Acres 7.66B Gals (45M tons) Source: OIV

4. Cost of Ocean Freight Approx. US$0.80 per gal

5. Imports Pinot Grigio Pinot Noir Riesling Long Inventories in S. America & Australia

6. Australian Production

7. Chile Annual Production

8. Argentina Grape Production

9. +33%+27% +35%

10. Dry White Wine

11. Dry Red Wine

12. Cabernet Sauvignon Wine

13. Merlot Wine

14. Syrah (Shiraz) Wine

15. Chardonnay Wine

16. Currency Exchange Rates 2000$0.52 2001$0.52 2002$0.56 2003$0.72 2004$0.77 2005$0.74 2006$0.78 2000$0.86 2001$0.90 2002$0.99 2003$1.20 2004$1.33 2005$1.18 2006$1.32 AUD 1.00 = US EURO 1.00 = US

17. California Exports 76.46M Gals 94.13M Gals 91.27M Gals Est. 92.33M Gals 440,000 Tons 540,000 Tons 520,000 Tons Est. 530,000 Tons Source: Gomberg Fredrikson Report; State Board of Equalization

18. SJV Strengths White Zinfandel Zinfandel Ruby Cabernet Colombard Competitive Varietals

19. Major Export Mkts for SJV Wines Canada Germany Scandinavia UK Asia

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21. Thank You for your time and Attention Greg Livengood Joseph W. Ciatti Co., LLC T.415/458-5150 www.ciatti.com