Vincor International today announced strong increases in net income and earnings per share for fiscal 2000 primarily due to a favourable sales mix and the realization of cost savings due to the integration of prior years' acquisitions.

For fiscal 2000, Vincor's net income increased by 14% to $13.3 million from $11.7 million in fiscal 1999 and earnings per share by 12% to $0.94 basic and $0.91 fully diluted compared with $0.84 basic and $0.81 fully diluted in fiscal 1999. The results were driven by a continuing increase in demand for premium brands, especially VQA wines.

Over the past five years, the Canadian market for premium and super- premium wine products has grown by 93%. Vincor's marketing and acquisition strategy has positioned the company to capitalize on this demand and has had notable success with the Jackson-Triggs brand, which has grown from launch in fiscal 1994 to more than 400,000 cases in fiscal 2000.

Capping a year of great accomplishment for the Jackson-Triggs brand, Jackson-Triggs Niagara Peninsula 1998 Grand Reserve Meritage was awarded the trophy for "Red Wine of the Year" at the All-Canadian Wine Championships in May 2000. This award follows other notable awards for Jackson-Triggs Okanagan Valley wines, including Canadian Winery of the Year honours at the London International Wine & Spirits Competition.

Earlier in the year, pricing on table wines became out of step with consumer expectations and sales volume declined. In the second half of fiscal 2000, Vincor responded with effective pricing and focused marketing programs which resulted in a year over year 13% sales volume increase in the second half, restoring sales momentum to the business.

Net income for the fourth quarter, ended March 31, 2000, was $923,000 on net sales of $58.2 million, compared with $919,000 on net sales of $51.0 million in the fourth quarter of 1999. Basic and fully diluted net income per share for the quarter remained steady at $0.07. The flat year-over-year profit level is attributable to the previously mentioned realignment of prices together with incremental marketing promotions designed to restore volume momentum.

In February, Vincor announced a joint venture with La Famille Boisset of Burgundy, France, to establish a new vineyard property on the Jordan Bench in Niagara to focus on producing the very highest quality VQA Chardonnay and Pinot Noir. The new alliance will increase Vincor's participation in the key growth segments of the market and will support the Company's vision of the Niagara region's ability to produce world caliber wines.

Fiscal 2000 also saw the successful launch of Inniskillin VQA sparkling icewine, a commemorative Canadian champagne, President Cuvee 2000, Vex hard lemonade and Mystic Bay, a range of flavoured varietal wines. These introductions add to Vincor's portfolio of wines and refreshment beverages, take advantage of the growth segments of the market, and provide Vincor with strong momentum entering the new millennium.

Following the end of fiscal 2000, Vincor completed the acquisition of Sumac Ridge Estate Winery Ltd., British Columbia's premier VQA winery. This acquisition brought the renowned Black Sage Vineyard into the Vincor family, and complements the Company's strong portfolio of VQA wines from the Okanagan Valley appelation.

Vincor International Inc. is Canada's largest producer and marketer of wines and related products, with leading brands in all segments of the market. The Company has wineries in British Columbia, Ontario, Qu\032
Committed to serving the entire spectrum of consumers, Vincor produces and markets refreshment products including Canada Cooler, Vibe and Growers' Cider, and Vex Hard Lemonade as well as wine kit products from RJ Grape and Spagnol's. Vincor also owns Wine Rack, Ontario's largest independent wine retailer with more than 160 stores.





FINANCIAL HIGHLIGHTS

(in millions of dollars
except per share data)

For the three months For the 12 months
ended March 31 ended March 31
2000 1999 2000 1999
----------------- -----------------

Net Sales $ 58.2 $ 51.0 $268.2 $253.2

Net Income 0.9 0.9 13.3 11.7

Net Income Per Share
Basic 0.07 0.07 0.94 0.84
Fully Diluted 0.07 0.07 0.91 0.81

Weighted Average
Common Shares
Outstanding (in thousands)
Basic 14,125 13,876
Fully Diluted 5,085 14,804



VINCOR INTERNATIONAL INC.
Consolidated Balance Sheets
(In thousands of dollars)

March 31, 2000 and 1999

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2000 1999
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Assets

Current assets:
Accounts receivable $ 35,684 $ 33,283
Inventories 70,711 83,111
Prepaid expenses 1,170 1,070
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107,565 117,464

Fixed assets 73,279 59,997

Other assets 3,806 4,112

Goodwill, net of amortization of
$12,298 (1999 - $8,164) 78,878 83,012

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$ 263,528 $ 264,585
Liabilities and Shareholders' Equity

Current liabilities:
Bank indebtedness $ 49,415 $ 50,843
Accounts payable and accrued liabilities 36,560 41,887
Income and other taxes payable 1,766 943
Deferred income taxes 1,306 1,359
Current portion of long-term debt 10,420 10,420
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99,467 105,452

Long-term debt 20,680 31,280

Deferred income taxes 14,127 12,060

Shareholders' equity:
Capital stock 84,858 84,689
Retained earnings 44,396 31,104
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129,254 115,793


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$ 263,528 $ 264,585



VINCOR INTERNATIONAL INC.
Consolidated Statements of Operations
(In thousands of dollars, except per share data)

Years ended March 31, 2000 and 1999

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-------------------------------------------------------------------------
2000 1999
-------------------------------------------------------------------------

Net sales $ 268,196 $ 253,229

Operating expenses:
Cost of goods sold 165,209 158,155
Selling and administration 65,082 60,058
Depreciation and amortization 9,604 8,662
---------------------------------------------------------------------
Total operating expenses 239,895 226,875
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Operating income 28,301 26,354

Interest 4,982 5,155
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Income before income taxes 23,319 21,199

Income taxes 10,027 9,519

-------------------------------------------------------------------------
Net income $ 13,292 $ 11,680
Per common share:
Basic $ 0.94 $ 0.84
Fully diluted 0.91 0.81



Consolidated Statements of Retained Earnings
(In thousands of dollars)

Years ended March 31, 2000 and 1999

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Retained earnings, beginning of year $ 31,104 $ 19,424

Net income 13,292 11,680

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Retained earnings, end of year $ 44,396 $ 31,104



VINCOR INTERNATIONAL INC.
Consolidated Statements of Cash Flows
(In thousands of dollars)

Years ended March 31, 2000 and 1999

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2000 1999
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Cash provided by (used in):

Operating activities:
Net income $ 13,292 $ 11,680
Operating charges not affecting cash:
Depreciation 5,148 3,904
Amortization of goodwill and
financing costs 4,456 4,758
Deferred income taxes 2,067 2,161
Other non-cash items 2 (6)
-----------------------------------------------------------------
24,965 22,497
Change in non-cash working capital 5,342 (9,533)
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Cash from operating activities 30,307 12,964

Financing activities:
Issuance of term bank debt - 24,600
Repayment of term bank debt (10,600) (5,300)
Issuance (repayment) of bank indebtedness (1,428) 22,380
Issuance of common shares 169 1,270
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Cash from (used in) financing activities (11,859) 42,950

Investing activities:
Purchase of fixed assets (18,446) (17,905)
Acquisitions - (39,786)
Proceeds from fixed asset disposals 14 10
Proceeds from other asset disposals,
net of investments (16) 1,767
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Cash used in investing activities (18,448) (55,914)

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Cash and cash equivalents, end of year $ - $ -
Supplemental cash flow information:
Cash interest paid $ 4,886 $ 4,663
Cash taxes paid 8,605 10,170