Two directors have resigned from The Chalone Wine Group, Ltd. The company announced yesterday (22 November) that, in an effort to maintain the listing of its common shares on the NASDAQ National Markets, Yves-Andre Istel and George E. Myers have resigned.

The move is in response to a letter Chalone received from the staff of The NASDAQ National Market stating that Chalone does not meet the independent director requirements of Marketplace Rule 4350 (c)(1) for continued listing on the NASDAQ National Market.

While Chalone believes that the resignations and related changes will result in Chalone being in compliance with the independent director requirements, Chalone is also requesting a hearing with a NASDAQ Listing Qualifications Panel to review the position of the NASDAQ staff. There can be no assurance that the Panel will grant Chalone's request for continued listing.

With the resignations, the number of members of Chalone's board of directors has been reduced to nine, of which the majority are independent under NASDAQ rules. As additional measures to comply with NASDAQ independence requirements, Christophe Salin has been replaced on the compensation committee of the board of directors by John Diefenbach and the board of directors have formed a nominating committee consisting of Messrs. Marcel Gani, C. Richard Kramlich and Phillip M. Plant.

Chalone has entered into a merger agreement with Domaines Barons de Rothschild (Lafite) pursuant to which each holder of Chalone common stock other than DBR would receive US$11.75 per share in cash and continued wine benefits.