Magnotta Winery Corporation is pleased to report continued growth and earnings for the three month period ended April 30, 2000. Gross sales increased by 10.8% to $4,747,712 from $4,284,600 and net sales increased by 9.9% to $3,460,793 from $3,149,330 compared to the corresponding three month period ended April 30, 1999. The sales increase has been facilitated through increased sales in Chile and increased inter-provincial, and export sales. The gross margin percentage has increased to 53.2% from 51.9% due to the product mix of sales. Earnings before interest, income taxes, depreciation and amortization increased 5.5% to $1,196,545 from $1,134,211 for the three months ended April 30, 2000. Net earnings grew 16.9% to $338,574 from $289,747 last year. Basic earnings per share and fully diluted earnings per share increased 50% respectively from last year.

Beer sales through the Brewers Retail stores in Ontario are showing improved sales volumes. The Company will shortly expand its beer distribution to include the Ottawa, Ontario area - Ontario's second largest beer market. Furthermore, the Company will also introduce its Classic European India Pale Ale in the summer of 2000. This beer will be available through the Brewers Retail stores as well as through the Vaughan, Ontario location.

I am pleased to announce that our Classic European Altbier has won a medal at the 2000 World Beer Cup held in New York City, USA. This is a beer competition held once every two years with entries from around the world.

The retail sales of spirits will resume shortly from the Beamsville distillery location. This will generate additional sales for fiscal 2001.

As stated in the 2000 Annual Report, the Annual General Meeting will be held on June 28, 2000 at 4:00 p.m. at the Regency Banquet Hall, 8400 Jane Street Vaughan, Ontario. After the meeting, all are invited to visit the head office facility near by. We hope to see you there.

Once again, I would like to thank our customers, shareholders, suppliers, directors and staff for your continued dedication, commitment and support.

Gabe Magnotta
President and Chief Executive Officer



MAGNOTTA WINERY CORPORATION
Consolidated Balance Sheets

As at April 30, 2000, with comparative figures for
January 31, 2000 and April 30, 1999

---------------------------------------------------------------
April 30 January 31 April 30
2000 2000 1999
(Unaudited) (Audited) (Unaudited)
---------------------------------------------------------------

Assets

Current assets:
Accounts receivable $1,531,130 $941,921 $1,130,729
Inventories 13,081,370 13,843,591 11,009,074
Prepaid expenses and deposits 536,439 657,877 664,389
-----------------------------------
15,148,939 15,443,389 12,804,192

Capital assets 18,568,216 18,713,482 18,272,914
-----------------------------------
$33,717,155 $34,156,871 $31,077,106
-----------------------------------

Liabilities and Shareholders' Equity

Current liabilities:
Bank indebtedness $5,188,995 $5,309,679 $3,755,703
Accounts payable and accrued
liabilities 1,524,927 1,912,400 1,232,495
Income taxes payable 463,048 432,603 510,562
Current portion of
long-term debt 1,184,874 1,266,633 1,258,046
Current portion of
preference shares 2,250,000 1,550,000 1,550,000
-----------------------------------
10,611,844 10,471,315 8,306,806

Long-term debt 9,729,310 10,022,129 10,687,981
Future income taxes 798,896 724,896 435,094

Preference shares - 700,000 700,000

Shareholders' equity:
Share capital 4,915,293 4,915,293 4,915,293
Other paid in capital 210,000 210,000 210,000
Retained earnings 7,451,812 7,113,238 5,821,932
-----------------------------------
12,577,105 12,238,531 10,947,225
-----------------------------------
$33,717,155 $34,156,871 $31,077,106
---------------------------------------------------------------

Segmented information on identifiable assets by
geographic region
Assets:
Canada $29,651,962 $30,141,555 $26,761,437
Chile 4,065,193 4,015,316 4,315,669
-----------------------------------
$33,717,155 $34,156,871 $31,077,106
---------------------------------------------------------------

MAGNOTTA WINERY CORPORATION
Consolidated Interim Statements of Earnings and Retained
Earnings

Three months ended April 30, 2000, with comparative figures for
April 30, 1999

---------------------------------------------------------------
April 30 April 30
2000 1999
(Unaudited) (Unaudited)
---------------------------------------------------------------

Sales $4,747,712 $4,284,600
Less product taxes levied 1,286,919 1,135,270
-----------------------
Net sales 3,460,793 3,149,330

Cost of sales 1,618,474 1,513,942
-----------------------
Gross profit 1,842,319 1,635,388

Expenses:
Selling, general and administrative 645,774 501,177
Amortization 274,206 278,536
Dividends on redeemable preference shares 26,933 25,598
Interest 98,699 73,562
Interest - long-term debt 223,133 257,768
-----------------------
1,268,745 1,136,641
-----------------------
Earnings before income taxes 573,574 498,747

Income taxes:
Current 161,000 142,000
Future 74,000 67,000
-----------------------
235,000 209,000
-----------------------

Net earnings for the period 338,574 289,747

Retained earnings, beginning of period 7,113,238 5,501,896

Adjustment to future income taxes - 30,289

Retained earnings, end of period $7,451,812 $5,821,932
---------------------------------------------------------------
Earnings per share :
Basic $0.03 $0.02
Fully diluted $0.03 $0.02
---------------------------------------------------------------
Weighted average number of common shares
outstanding 12,189,576 12,046,459
Common shares outstanding 12,189,576 12,189,576
---------------------------------------------------------------
Segmented information on net sales by geographic region
Net sales:
Canada $2,860,793 $2,749,330
Chile 600,000 400,000
-----------------------
$3,460,793 $3,149,330
---------------------------------------------------------------

MAGNOTTA WINERY CORPORATION
Consolidated Interim Statements of Cash Flow

Three months ended April 30, 2000, with comparative figures for
April 30, 1999

---------------------------------------------------------------
April 30 April 30
2000 1999
(Unaudited) (Unaudited)
---------------------------------------------------------------

Cash flows from (used in):

Operating activities:
Net earnings $338,574 $289,747
Adjustments:
Amortization 274,206 278,536
Future income taxes 74,000 67,000
-----------------------
686,780 635,283

Changes in non-cash operating working capital:
Accounts receivable (589,209) (244,573)
Inventories 762,221 189,798
Prepaid expenses and deposits 121,438 (15,018)
Accounts payable and accrued
liabilities (387,473) (459,569)
Income taxes payable 30,445 (109,685)
-----------------------
(62,578) (639,047)
-----------------------

624,202 (3,764)

Financing activities:
Decrease in long-term debt (374,578) (124,839)
Increase (decrease) in bank indebtedness (120,684) 308,414
-----------------------
(495,262) 183,575
Investing activities:
Purchases of capital assets (128,940) (179,811)
-----------------------
Cash, end of period - -
-----------------------