President's Report to Shareholders of Magnotta Winery Corporation Six Months Ended July 31, 2000 Financial Highlights Three Month Six Month Period Ended Period Ended July 31, 2000 July 31, 2000 ------------- ------------- Gross Sales Increased 19.7% Increased 15.3% Net Sales Increased 26.4% Increased 18.1% Earnings Before Interest, Income Taxes and Amortization Increased 6.9% Increased 6.2% Net Earnings Increased 5.7% Increased 10.1%