National Wine & Spirits Inc. Reports Results

INDIANAPOLIS, Aug. 13

Unaudited:
* Revenues increased 3.2% to $167.4 million vs. $162.2 million in prior year.
* Gross margin increased 3.2%, or $1.2 million from prior year.
* Net income was $2.7 million vs. $2.7 million in prior year's comparable quarter which was before a non-recurring gain of $7.5 million from the sale of Cameron Springs.
* EBITDA of $7.5 million vs. $8.2 million in prior year.
* LTM EBITDA of $27.4 million vs. $24.6 million in prior year.

Results:
Indianapolis-based National Wine & Spirits, Inc. reported its financial results for the quarter ended June 30, 2001. Revenue increased 3.2% to $167.4 million for the current year's quarter as compared to $162.2 million in the prior year. Case volume for wine and spirits in the product markets increased 5.1% due to greater sales of existing brands along with new product introductions in the Illinois and Indiana markets.

In May of 2001, U.S. Beverage announced a long-term agreement with Grolsch International BV to provide national distribution, marketing and sales for premium Grolsch beers. Grolsch sells approximately 2 million cases nationwide, representing approximately $35 million in sales and is ranked among the top 25 imports in the United States. The Company expects that it will commence distribution of Grolsch by the end of the calendar year 2001, awaiting the expiration of distribution rights currently held by Seagram.

Net income was stable at $2.7 million, after excluding the one-time gain of $7.5 million from the sale of Cameron Springs during the quarter ended June 30, 2000. EBITDA was $7.5 million as compared to $8.2 million in the prior year. Adjusted EBITDA was $28.7 million for the latest twelve months ended June 30, 2001 as compared to $25.7 million for the twelve month period ended June 30, 2000.

Indianapolis-based National Wine & Spirits, Inc. is one of the leading distributors of alcohol beverages in the U.S. The Company has a strong portfolio that includes brands from Seagram, Future Brands (FO), Diageo (DEO), Canandaigua Brands (CDB), Brown-Forman (BFA; BFB), Allied Domecq, Sebastiani Winery, Banfi, and Beringer Wine (BERW) among others.

Source: National Wine & Spirits, Inc.