First Quarter 2010 Financial Highlights*   (in millions, except per share data)                                 Comparable  % Change  Reported  % Change                                ----------  --------  --------  --------   Consolidated net sales             $792       -15%     $792       -15%    Operating income                   $123        -6%      $83        -8%    Operating margin                   15.6%  150 bps      10.5%   80 bps    Equity in earnings of equity    method investees**                 $63       -13%      $63       -13%    Earnings before interest and    taxes (EBIT)                      $186        -9%        -         -    Net income                          $73         -        $7        NM    Diluted earnings per share        $0.33        -3%    $0.03        NM   

Constellation Brands, Inc. , the world's leading wine company, reported today its fiscal 2010 first quarter results. "We are generally pleased with our quarterly results, which were in-line with our expectations," said Rob Sands, president and chief executive officer of Constellation Brands. "To strengthen our position as an industry leader, especially in this challenging economy, we took steps over the past 18 months to shift the focus of our strategy to building must-have brands that return the greatest profits and that represent good value for consumers. We are already seeing the benefits from this strategy as brands such as Woodbridge by Robert Mondavi, Nobilo, Clos du Bois, Kim Crawford and SVEDKA continue to perform well. During the quarter, we also made progress on our global cost reduction initiative which was implemented to mitigate the negative impacts of the turbulent global economy and to create efficiencies to drive long-term sustainable growth."

   (Logo:  http://www.newscom.com/cgi-bin/prnh/20040119/STZLOGO )     First Quarter 2010 Net Sales Highlights*   (in millions)                       Reported                  Organic                ------------------------  ------------------------                                Constant                  Constant                  Net           Currency    Net           Currency                Sales % Change    Change  Sales % Change    Change                ----- --------    ------  ----- --------    ------   Consolidated  $792      -15%       -5%  $792       -9%        1%   Branded Wine  $688      -10%        -   $688       -9%        1%   Spirits        $60      -43%      -43%   $60       13%       13%   Other          $44      -28%       -8%   $44      -28%       -8%    *  Definitions of reported, comparable, organic and constant currency,      as well as reconciliations of non-GAAP financial measures, are      contained elsewhere in this news release.    ** Hereafter referred to as "equity earnings."    NM=Not meaningful    Net Sales Commentary   

Reported consolidated net sales decreased 15 percent due primarily to the impact of year-over-year currency exchange rate fluctuations and the divestitures of the value spirits business, spirits contract production services and certain Pacific Northwest wine brands. Organic net sales increased one percent on a constant currency basis.

Branded wine organic net sales on a constant currency basis increased one percent, which includes a one percent decrease for North America, a six percent increase for Europe, and a seven percent increase for Australia/New Zealand. Key markets are being impacted by planned SKU reductions and continuing economic pressures are driving unfavorable sales mix. However, SG&A reduction efforts are having the expected benefit of offsetting reduced gross profit margins. Net sales for Europe benefited from timing impacts related to the U.K. duty increase.

"During the quarter we integrated the remaining spirits business into our North American wine organization and began refining the structure of our U.S. wine business into a single integrated group with the goal of better serving our trade customers and ultimately consumers," Sands said. "This structure, combined with an unparalleled premium portfolio that includes well-known and admired brands such as Robert Mondavi, Wild Horse, Ravenswood, Estancia and Blackstone, provides us with outstanding opportunities to capture growth in the marketplace."

Total spirits organic net sales increased 13 percent for the quarter, led by a 33 percent gain for SVEDKA Vodka. "The integration of our premium spirits brands into the North American organization went well," Sands continued. "SVEDKA continues to enjoy tremendous momentum and now ranks as the third largest import and fifth largest vodka brand overall in the U.S. The futuristic marketing campaign featuring the iconic fembot resonates well with consumers and we are seeing continuing strong growth particularly in national chains, control states and on-premise."

Operating Income, Net Income, Diluted EPS Commentary

Wines segment operating income decreased $8 million versus the prior quarter. This decrease is primarily due to the divestiture of the value spirits business and certain Pacific Northwest wine brands, negative mix and a decrease in international business performance partially offset by savings from cost reduction initiatives and gains from foreign currency transactions.

Constellation's equity earnings from its 50 percent interest in the Crown Imports joint venture totaled $63 million, a decrease of 10 percent from the prior year first quarter. For first quarter 2010, Crown Imports generated net sales of $636 million, a decrease of five percent, and operating income of $126 million, a decrease of nine percent.

"While the on-premise and convenience channels remain difficult, Crown is seeing some improvement at national chains in the grocery channel as it focuses on optimizing promotional activity through targeted marketing and programming support," said Sands. "In particular, Corona Extra is ramping up its marketing efforts for the peak summer sales season by reprising some of its most iconic television spots and focusing its overall media investment into and through these key periods."

For first quarter 2010, pre-tax restructuring charges, acquisition-related integration costs and unusual items totaled $40 million compared to $41 million for the prior year first quarter.

Interest expense totaled $67 million, a decrease of 23 percent. The decrease was primarily due to a lower average debt balance.

"The improvement in interest expense reflects the significant debt pay down in fiscal 2009 and additional debt reduction during the first quarter as proceeds from the sale of the value spirits business in March 2009 contributed to our on-going deleveraging efforts," said Bob Ryder, Constellation Brands chief financial officer.

Summary

"The macroeconomic environment remains challenging but we continue to focus on the right strategies to generate cash, reduce borrowings, increase return on invested capital, and improve the bottom line. We are striving to better align our businesses in the U.K. and Australia to provide opportunity for increased efficiencies and cost savings, which are among our top priorities during these tumultuous times," Sands concluded. "Through prudent, targeted actions, coupled with some of the strongest brands in the industry, we believe we are well-positioned to benefit from the upturn in the economy when it occurs. Finally, I would like to thank our Constellation colleagues around the world for their hard work and dedication as we focus on achieving our goals for fiscal 2010."

Outlook

The table below sets forth management's current diluted EPS expectations for fiscal year 2010 compared to fiscal year 2009 actual results, both on a reported basis and a comparable basis.

                  Constellation Brands Fiscal Year 2010                   Diluted Earnings Per Share Outlook                           Reported Basis            Comparable Basis                      ---------------------       --------------------                        FY10          FY09          FY10         FY09                      Estimate       Actual       Estimate      Actual                      --------       ------       --------      ------   Fiscal Year    Ending Feb. 28  $0.97 - $1.07   ($1.40)    $1.60 - $1.70    $1.60    Full-year fiscal 2010 guidance includes the following current assumptions:   --  Interest expense: approximately $265 - $285 million   --  Tax rate: approximately 53 percent on a reported basis, as compared to       38 percent on a comparable basis, primarily due to  a provision of 9       percentage points associated with the March 2009 sale of the value       spirits business and 5 percentage points related to international       restructuring activities with minimal tax benefits   --  Weighted average diluted shares outstanding: approximately 222 million    --  Free cash flow: $230 - $270 million    Conference Call   

A conference call to discuss first quarter fiscal 2010 results and outlook for fiscal 2010 will be hosted by President and Chief Executive Officer Rob Sands and Executive Vice President and Chief Financial Officer Bob Ryder on Wednesday, July 1, 2009 at 10:30 a.m. (eastern). The conference call can be accessed by dialing +973-935-8505 beginning 10 minutes prior to the start of the call. A live listen-only webcast of the conference call, together with a copy of this news release (including the attachments) and other financial information that may be discussed in the call will be available on the Internet at Constellation's Web site: http://www.cbrands.com/ under "Investors," prior to the call.

Explanations

Reported basis ("reported") operating income, net income and diluted EPS are as reported under generally accepted accounting principles. Operating income, net income and diluted EPS on a comparable basis ("comparable"), exclude restructuring charges, acquisition-related integration costs and unusual items. The company's measure of segment profitability excludes restructuring charges, acquisition-related integration costs and unusual items, which is consistent with the measure used by management to evaluate results.

The company discusses additional non-GAAP measures in this news release, including constant currency net sales, organic net sales, comparable basis EBIT and free cash flow.

Tables reconciling non-GAAP measures, together with definitions of these measures and the reasons management uses these measures, are included in

   this news release.    About Constellation Brands   

Constellation Brands is the world's leading wine company, with a broad portfolio of widely admired premium brands across the wine, beer and spirits categories. Our company achieves success through an unmatched knowledge of wine consumers paired with storied brands that suit their varied lives and tastes. Our portfolio of brands include Robert Mondavi, Hardys, Clos du Bois, Blackstone, Banrock Station, Arbor Mist, Estancia, Ravenswood, Jackson-Triggs, Kim Crawford, Corona Extra, Black Velvet Canadian Whisky and SVEDKA Vodka.

Constellation Brands is an S&P 500 Index and Fortune 1000(R) company with more than 100 total brands in our portfolio, sales in about 150 countries and operations in approximately 50 facilities. The company believes that industry leadership involves a commitment to our brands, to the trade, to the land, to investors and to the different people around the world who turn to our products when celebrating big moments or enjoying quiet ones. We express this commitment through our vision: to elevate life with every glass raised. To learn more about Constellation Brands and its product portfolio visit the company's web site at http://www.cbrands.com/.

Forward-Looking Statements

The statements made under the heading Outlook, and all statements other than statements of historical facts set forth in this news release regarding Constellation's business strategy, future operations, financial position, estimated revenues, projected costs, prospects, plans and objectives of management, as well as information concerning expected actions of third parties, are forward-looking statements (collectively, the "Projections") that involve risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by the Projections.

During the current quarter, Constellation may reiterate the Projections. Prior to the start of the company's quiet period, which will begin at the close of business on Aug. 24, 2009, the public can continue to rely on the Projections as still being Constellation's current expectations on the matters covered, unless Constellation publishes a notice stating otherwise. During Constellation's "quiet period," the Projections should not be considered to constitute the company's expectations and should be considered historical, speaking as of prior to the quiet period only and not subject to update by the company.

The Projections are based on management's current expectations and, unless otherwise noted, do not take into account the impact of any future acquisition, merger or any other business combination, divestiture, restructuring or other strategic business realignments, or financing that may be completed after the date of this release. The Projections should not be construed in any manner as a guarantee that such results will in fact occur.

In addition to the risks and uncertainties of ordinary business operations, the Projections of the company contained in this news release are subject to a number of risks and uncertainties, including:

   --  successful integration of acquired businesses and realization of       expected synergies;   --  completion of various portfolio actions;   --  achievement of all expected cost savings from the company's various       restructuring plans, realization of expected asset sale proceeds from       the sale of inventory and other assets, and receipt of all       consideration from the divestiture of the value spirits business;   --  accuracy of the bases for forecasts relating to joint ventures and       associated costs and capital investment requirements;   --  restructuring charges, acquisition-related integration costs, other       one-time costs and purchase accounting adjustments associated with       integration and restructuring plans may vary materially from       management's current estimates due to variations in one or more of       anticipated headcount reductions, contract terminations, costs or       timing of plan implementation;   --  raw material supply, production or shipment difficulties could       adversely affect the company's ability to supply its customers;   --  increased competitive activities in the form of pricing, advertising       and promotions could adversely impact consumer demand for the       company's products and/or result in lower than expected sales or       higher than expected expenses;   --  general economic, geo-political and regulatory conditions, prolonged       downturn in the economic markets in the U.S. and in the company's       major markets outside of the U.S., continuing instability in world       financial markets, or unanticipated environmental liabilities and       costs;   --  changes to accounting rules and tax laws, and other factors which       could impact the company's reported financial position or effective       tax rate;   --  changes in interest rates and the inherent unpredictability of       currency fluctuations, commodity prices and raw material costs; and    --  other factors and uncertainties disclosed in the company's filings       with the Securities and Exchange Commission, including its Annual       Report on Form 10-K for the fiscal year ended Feb. 28, 2009,  which       could cause actual future performance to differ from current       expectations.      Constellation Brands, Inc.