UST 8-K Ust Reports Third Quarter 2007 Results; Raises Guidance on Strong Fundamentals

Exhibit 99.1

Thomas J. Fitzgerald	Mark A. Rozelle
Media Relations	Investor Relations
(203) 817-3549	(203) 817-3520

UST REPORTS THIRD QUARTER 2007 RESULTS;
RAISES GUIDANCE ON STRONG FUNDAMENTALS

•   Diluted earnings per share $.84, +15.1% vs. year ago

•   Adjusted diluted earnings per share $.87, +13.0% vs. year ago (see table)

•   Total Moist Smokeless Tobacco net can volume +4.6% and Premium Moist Smokeless Tobacco net can volume +2.7% vs. year ago

•   Moist Smokeless Tobacco category +6.7% vs. year ago (26 weeks ended Sept. 8, 2007)

•   USSTC’s Moist Smokeless Tobacco category share continues to stabilize

•   Ste. Michelle Wine Estates net sales +18.3% and operating profit +34.1% vs. year ago

•   Total year 2007 diluted earnings per share target raised by $.06 to $3.27

•   Total year 2007 adjusted diluted earnings per share target raised by $.07 to $3.42 (see table)

STAMFORD, Conn., Oct. 25, 2007 – UST Inc. (NYSE: UST) today reported that the company delivered strong results in all aspects of its business for the third quarter 2007.

“UST’s strong third quarter financial results were driven by a combination of robust volume growth in moist smokeless tobacco and wine, Project Momentum cost savings and the benefit of share repurchases,” said Murray S. Kessler, president and chief executive officer. “These results demonstrate how the company is utilizing the various tools available to increase shareholder returns, while at the same time investing in its brands to accelerate profitable volume growth.”

Consolidated Results

For the third quarter ended Sept. 30, 2007, net sales increased 4.6 percent to $479.6 million, operating income increased 13.7 percent to $218.4 million, net earnings increased 13.1 percent to $133.6 million, and diluted earnings per share increased 15.1 percent to $.84 versus the prior year period.

Third quarter 2007 results included Project Momentum related restructuring charges, lease charges recorded in connection with the sale of the company’s headquarters, and a minor litigation charge related to a previously resolved antitrust action. These items totaled $7.7 million before income taxes, and adversely impacted diluted earnings per share by $.03.

Third quarter 2006 results included Project Momentum related restructuring charges of $17.5 million ($11.1 million net of tax), partially offset by $3.9 million of net income from discontinued operations related to the company’s previously disposed cigar operations. Combined, these items adversely impacted 2006 diluted earnings per share by $.04.

Adjusting for these items in each year, underlying third quarter 2007 operating income increased 7.9 percent to $226.1 million, net earnings increased 10.6 percent to $138.5 million and diluted earnings per share increased 13.0 percent to $.87, as indicated in the attached reconciliation table.

The 13.0 percent increase in third quarter 2007 adjusted diluted earnings per share was driven by moist smokeless tobacco net can volume growth, strong results for wine operations, favorable cost and spending comparisons due to Project Momentum, and a reduction in shares outstanding as a result of the company’s share repurchase program. During the quarter the company accelerated its investment in share repurchases, spending $130 million to acquire 2.6 million shares.

For the nine-month period ended Sept. 30, 2007, net sales increased 3.9 percent to $1,417.9 million, operating income increased 1.6 percent to $623.8 million, net earnings increased 3.4 percent to $381.1 million and diluted earnings per share increased 4.4 percent to $2.37.

The nine-month 2007 period included antitrust litigation settlement and restructuring charges, partially offset by a net gain on the sale of the company’s headquarters. These items adversely impacted diluted earnings per share by $.15.

The nine-month 2006 period included antitrust litigation settlement and restructuring charges, partially offset by income from discontinued operations related to the company’s previously disposed cigar business. These items adversely impacted 2006 diluted earnings per share by $.06.

(More)

Adjusting for these items in each year, underlying nine-month 2007 operating income increased 4.2 percent to $659.8 million, net earnings increased 7.2 percent to $403.8 million and diluted earnings per share increased 8.2 percent to $2.52, as indicated in the attached reconciliation table.

For the nine-month 2007 period, the company repurchased 4.7 million shares at a cost of $250 million.

Smokeless Tobacco Segment

Third quarter 2007 net sales increased 1.8 percent to $384.1 million and operating profit increased 14.5 percent to $213.1 million versus the prior year period. As shown in the reconciliation table, adjusted operating profit increased 7.5 percent to $216.6 million and the adjusted operating profit margin increased 300 basis points to 56.4 percent. The margin improvement was driven by cost efficiencies resulting from Project Momentum, which more than offset increased spending in brand building marketing programs.

In the quarter, total moist smokeless tobacco net can volume increased 4.6 percent to 165.2 million, with premium increasing 2.7 percent to 139.0 million and price value increasing 16.3 percent to 26.2 million, versus the prior year period. The company attributes this strong growth to ongoing initiatives to grow the category by converting adult smokers to smokeless tobacco, investment in premium brand loyalty programs, and continued successful new product introductions.

U.S. Smokeless Tobacco Company’s Retail Account Data Share & Volume Tracking System (RAD-SVT), for the 26-week period ended Sept. 8, 2007, indicated continued strong category growth trends and USSTC’s category share continuing to stabilize. (See supplemental schedule for information about RAD-SVT data). Total category shipments increased 6.7 percent versus the year-ago period. USSTC total shipments increased 3.5 percent, and USSTC’s total share of 61.0 percent declined 1.9 percentage points versus the prior year period, but only 0.2 percentage points versus the previously reported 26-week period.

USSTC MST Category Share (26 weeks ended)
June 16, 2007	Sept. 8, 2007
61.2%		61.0	%

USSTC’s premium brands grew 2.1 percent, outpacing the premium segment which grew 1.3 percent versus the prior year period. USSTC’s price value shipments increased 11.3 percent, while the total price value segment increased 14.5 percent.

(More)

“We are pleased to report our fifth consecutive quarter of premium net can volume growth,” said Daniel W. Butler, president, U.S. Smokeless Tobacco Company. “With share trends improving in a strongly growing category, we believe the company is well positioned to deliver sustainable volume-driven earnings growth in the future.”

For the first nine months of 2007, net sales increased 0.7 percent to $1,150.5 million versus the prior year period. Total net can volume increased 3.1 percent to 490.2 million, with premium up 1.9 percent to 414.9 million and price value up 10.8 percent to 75.3 million. Operating profit decreased 15.0 percent to $507.8 million and adjusted operating profit increased 4.2 percent to $640.0 million.

Wine Segment

In the third quarter 2007, net sales for Ste. Michelle Wine Estates increased 18.3 percent to $82.3 million as total premium case volume increased 12.6 percent to 1.2 million. Strong growth was driven by core brands, especially Chateau Ste. Michelle, as well as by last year’s acquisition of Erath and the recent acquisition of Stag’s Leap Wine Cellars, which closed on September 11, 2007. The net sales growth, combined with improved product mix, led to a 34.1 percent increase in operating profit to $12.7 million.

“This quarter, Chateau Ste. Michelle was the fastest growing top 25 premium wine brand in the United States,” said Theodor P. Baseler, president, Ste. Michelle Wine Estates. “Solid performance by our core brands, combined with our recent acquisitions of Erath and Stag’s Leap Wine Cellars, drove strong growth and improved returns in our business.”

For the nine-month 2007 period, net sales increased 22.8 percent to $230.6 million on a 15.4 percent increase in premium case volume versus the corresponding 2006 period. Operating profit advanced 28.1 percent to $35.1 million.

Outlook

As a result of the strength in third quarter 2007 results, the company is increasing its targeted 2007 GAAP diluted earnings per share guidance by $.06 to $3.27, with a range of $3.25 to $3.29. On an adjusted non-GAAP basis, the diluted earnings per share target has been raised by $.07 to $3.42, with a range of $3.40 to $3.44.

(More)

Consolidated diluted E.P.S.

	Full Year
	2007			2006			%
	Estimate			Actual			Change
GAAP diluted E.P.S.	$	3.27		$	3.12			4.8
Income from discontinued operations, net		—			(.02	)		—
GAAP diluted E.P.S. from continuing operations	$	3.27		$	3.10			5.5
Other items (net of taxes):
Antitrust litigation		.50			.01			—
Restructuring charges		.04			.08			—
Impact of sale of corporate headquarters, net		(.39	)		—			—
Adj. non-GAAP diluted E.P.S.	$	3.42		$	3.19			7.2

Over the long-term, the company’s goal is to provide an average annual shareholder return of 10 percent, including diluted earnings per share growth and a strong dividend. Strong fundamentals in both the Smokeless Tobacco and Wine segments, coupled with the Project Momentum cost savings initiative, provide confidence that this goal can be achieved, while at the same time allowing for investment to continue to enhance the company’s competitiveness in a vibrant and growing smokeless tobacco category.

A conference call is scheduled for 9 a.m. Eastern Time today to discuss these results. To listen to the call, please visitwww.ustinc.com. A 14-day playback is available by calling (888) 286-8010 or (617) 801-6888, code #30437544 or by visiting the website.

UST Inc. is a holding company for its principal subsidiaries: U.S. Smokeless Tobacco Company and Ste. Michelle Wine Estates. U.S. Smokeless Tobacco Company is the leading producer and marketer of moist smokeless tobacco products including Copenhagen, Skoal, Red Seal and Husky. Ste. Michelle Wine Estates produces and markets premium wines sold nationally under 15 different labels including Chateau Ste. Michelle, Columbia Crest, Stag’s Leap Wine Cellars and Erath, as well as distributes and markets Antinori products in the United States.

All statements included in this press release that are not historical in nature are forward-looking statements made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements regarding the company’s future performance and financial results are subject to a variety of risks and uncertainties that could cause actual results and outcomes to differ materially from those described in any forward-looking statement made by the company. These risks and uncertainties include uncertainties associated with ongoing and future litigation relating to product liability, antitrust and other matters and legal and other regulatory initiatives; federal and state legislation, including actual and potential excise tax increases, and marketing restrictions relating to matters such as adult sampling, minimum age of purchase, self service displays and flavors; competition from other companies, including any new entrants in the marketplace; wholesaler ordering patterns; consumer preferences, including those relating to premium and price value brands and receptiveness to new product introductions and marketing and other promotional programs; the cost of tobacco leaf and other raw materials; conditions in capital markets; and other factors described in this press release and in the company’s Annual Report on Form 10-K for the year ended December 31, 2006. Forward-looking statements made by the company are based on its knowledge of its businesses and the environment in which it operates as of the date on which the statements were made. Due to these risks and uncertainties, as well as matters beyond the control of the company which can affect forward-looking statements, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company undertakes no duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

(CONSOLIDATED UNAUDITED RESULTS ARE ATTACHED)
# # #

UST
CONSOLIDATED SALES AND EARNINGS
(In thousands, except per share amounts)
(Unaudited)

	Third Quarter
	2007		2006		% Change
Net sales	$	479,612	$	458,649		+ 4.6
Costs and expenses
Cost of products sold		126,469		115,855		+ 9.2
Selling, advertising and administrative		129,916		133,186		- 2.5
Restructuring charges		1,677		17,495		—
Antitrust litigation		3,158		—		—
Total costs and expenses		261,220		266,536		- 2.0
Operating income		218,392		192,113		+ 13.7
Interest, net		9,308		9,955		- 6.5
Earnings from continuing operations before income taxes		209,084		182,158		+ 14.8
Income tax expense		75,484		67,963		+ 11.1
Earnings from continuing operations		133,600		114,195		+ 17.0
Income from discontinued operations, including income tax effect		—		3,890		—
Net earnings	$	133,600	$	118,085		+ 13.1
Net earnings per basic share:
Earnings from continuing operations	$	.85	$	.71		+ 19.7
Income from discontinued operations		—		.03		—
Net earnings per basic share	$	.85	$	.74		+ 14.9
Net earnings per diluted share:
Earnings from continuing operations	$	.84	$	.71		+ 18.3
Income from discontinued operations		—		.02		—
Net earnings per diluted share	$	.84	$	.73		+ 15.1
Dividends per share	$	.60	$	.57		+ 5.3
Average number of shares:
Basic		157,666		160,440
Diluted		158,951		162,187

UST
CONSOLIDATED SALES AND EARNINGS
(In thousands, except per share amounts)
(Unaudited)

	Nine months ended Sept. 30,
	2007		2006		% Change
Net sales	$	1,417,884	$	1,365,190		+ 3.9
Costs and expenses
Cost of products sold		368,971		332,479		+ 11.0
Selling, advertising and administrative		395,875		399,796		- 1.0
Restructuring charges		9,105		17,495		- 48.0
Antitrust litigation		125,258		1,350		—
Total costs and expenses		899,209		751,120		+ 19.7
Gain on sale of corporate headquarters		105,143		—		—
Operating income		623,818		614,070		+ 1.6
Interest, net		27,438		32,218		- 14.8
Earnings from continuing operations before income taxes		596,380		581,852		+ 2.5
Income tax expense		215,296		217,089		- 0.8
Earnings from continuing operations		381,084		364,763		+ 4.5
Income from discontinued operations, including income tax effect		—		3,890		—
Net earnings	$	381,084	$	368,653		+ 3.4
Net earnings per basic share:
Earnings from continuing operations	$	2.40	$	2.27		+ 5.7
Income from discontinued operations		—		.02		—
Net earnings per basic share	$	2.40	$	2.29		+ 4.8
Net earnings per diluted share:
Earnings from continuing operations	$	2.37	$	2.25		+ 5.3
Income from discontinued operations		—		.02		—
Net earnings per diluted share	$	2.37	$	2.27		+ 4.4
Dividends per share	$	1.80	$	1.71		+ 5.3
Average number of shares:
Basic		159,056		160,940
Diluted		160,536		162,355

UST
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(Dollars in thousands)

	Sept. 30,			December 31,
	2007			2006
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	125,657		$	254,393
Short-term investments		10,000			20,000
Accounts receivable		67,952			52,501
Inventories:
Leaf tobacco		164,500			201,035
Products in process		220,418			233,741
Finished goods		186,030			145,820
Other materials and supplies		22,702			20,662
Total inventories		593,650			601,258
Deferred income taxes		23,708			11,370
Income taxes receivable		6,866			—
Assets held for sale		—			31,452
Prepaid expenses and other current assets		31,201			27,136
Total current assets		859,034			998,110
Property, plant and equipment, net		486,955			389,810
Deferred income taxes		40,469			26,239
Goodwill		34,499			6,547
Intangible assets		56,907			4,723
Other assets		14,381			14,919
Total assets	$	1,492,245		$	1,440,348
Liabilities and Stockholders’ (deficit) equity:
Current liabilities:
Accounts payable and accrued expenses	$	237,157		$	268,254
Income taxes payable		—			18,896
Litigation liability		132,524			12,927
Total current liabilities		369,681			300,077
Long-term debt		840,000			840,000
Postretirement benefits other than pensions		91,098			86,413
Pensions		154,952			142,424
Income taxes payable		37,728			—
Other liabilities		12,801			5,608
Total liabilities		1,506,260			1,374,522
Contingencies
Minority interest and put arrangement		27,592			—
Stockholders’ (deficit) equity:
Capital stock(1)		105,510			104,956
Additional paid-in capital		1,085,634			1,036,237
Retained earnings		726,493			635,272
Accumulated other comprehensive loss		(55,462	)		(56,871	)
		1,862,175			1,719,594
Less treasury stock — 54,037,765 shares in 2007 and 49,319,673 shares in 2006		1,903,782			1,653,768
Total stockholders’ (deficit) equity		(41,607	)		65,826
Total liabilities and stockholders’ (deficit) equity	$	1,492,245		$	1,440,348

(1) Common Stock par value $.50 per share: Authorized — 600 million shares; issued — 211,020,196 shares in 2007 and 209,912,510 shares in 2006. Preferred Stock par value $.10 per share: Authorized — 10 million shares; Issued — None.

UST
CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollars in thousands)
(Unaudited)

	Nine Months Ended Sept. 30,
	2007			2006
Operating Activities:
Net earnings	$	381,084		$	368,653
Adjustment to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		33,362			33,722
Share-based compensation expense		9,575			7,610
Excess tax benefits from share-based compensation		(7,520	)		(6,559	)
Gain on sale of corporate headquarters building		(105,143	)		—
Gain on disposition of property, plant and equipment		(474	)		(1,915	)
Amortization of imputed rent on corporate headquarters building		6,740			—
Deferred income taxes		(12,024	)		(9,513	)
Changes in operating assets and liabilities:
Accounts receivable		(9,856	)		4,364
Inventories		41,914			45,594
Prepaid expenses and other assets		(2,122	)		12,618
Accounts payable, accrued expenses, pensions and other liabilities		(15,650	)		(26,407	)
Income taxes		3,802			3,628
Litigation liability		119,597			(918	)
Net cash provided by operating activities		443,285			430,877
Investing Activities:
Short-term investments, net		10,000			(10,000	)
Purchases of property, plant and equipment		(51,504	)		(25,177	)
Proceeds from dispositions of property, plant and equipment		130,701			6,157
Acquisition of business		(155,202	)		(10,578	)
Loan to minority interest holder		(27,096	)		—
Minority interest holder loan payment		27,096			—
Investment in joint venture		(322	)		(2,921	)
Net cash used in investing activities		(66,327	)		(42,519	)
Financing Activities:
Repayment of debt		(7,095	)		—
Proceeds from the issuance of stock		30,517			53,792
Excess tax benefits from share-based compensation		7,520			6,559
Dividends paid		(286,622	)		(275,871	)
Stock repurchased		(250,014	)		(150,034	)
Net cash used in financing activities		(505,694	)		(365,554	)
(Decrease)/increase in cash and cash equivalents		(128,736	)		22,804
Cash and cash equivalents at beginning of year		254,393			202,025
Cash and cash equivalents at end of period	$	125,657		$	224,829

Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited)

The adjusted non-GAAP financial measures used in this press release exclude the impact of the net gain on the sale of the company’s corporate headquarters, restructuring charges associated with the Project Momentum cost savings initiative and antitrust litigation charges. The “gain on the sale of corporate headquarters, net” reflects the net impact of the gain recorded on the sale and the amortization of the short-term imputed rent on the property, which was recognized through Sept. 2007 when the company relocated its headquarters. For the full year, the net impact of these two items will result in $.39 per diluted share. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The company believes that these non-GAAP financial measures are helpful in assessing ongoing and forecasted operating results. In addition, these non-GAAP financial measures facilitate the company’s internal comparisons to historical operating results and comparisons to competitors’ operating results. The company has included these non-GAAP financial measures in this press release because it believes such measures allow for greater transparency related to supplemental information used by management in its financial and operational analysis. Investors are encouraged to review the reconciliations of the non-GAAP financial measures used in this press release to their most directly comparable GAAP financial measures as provided on the following pages.

Third Quarter

Consolidated Operating Income

	Third Quarter
	2007		2006		% Change
GAAP operating income	$	218,392	$	192,113		13.7
Other items:
Antitrust litigation		3,158		—		—
Restructuring charges		1,677		17,495		—
Impact of sale of corporate headquarters, net		2,889		—		—
Adj. non-GAAP operating income	$	226,116	$	209,608		7.9

Consolidated Net Earnings

	Third Quarter
	2007		2006			% Change
GAAP net earnings	$	133,600	$	118,085			13.1
Income from discontinued operations		—		(3,890	)		—
GAAP net earnings from continuing operations		133,600		114,195			17.0
Other items (net of taxes):
Antitrust litigation		2,018		—			—
Restructuring charges		1,072		11,092			—
Impact of sale of corporate headquarters, net		1,835		—			—
Adj. non-GAAP net earnings	$	138,525	$	125,287			10.6

Consolidated diluted E.P.S.

	Third Quarter
	2007		2006			% Change
GAAP diluted E.P.S.	$	.84	$	.73			15.1
Income from discontinued operations		—		(.02	)		—
GAAP diluted E.P.S. from continuing operations		.84		.71			18.3
Other items (net of taxes):
Antitrust litigation		.01		—			—
Restructuring charges		.01		.06			—
Impact of sale of corporate headquarters, net		.01		—			—
Adj. non-GAAP diluted E.P.S.	$	.87	$	.77			13.0

Smokeless Tobacco Segment Operating Profit

	Third Quarter
	2007		2006		% Change
GAAP operating profit	$	213,073	$	186,153		14.5
Other items:
Antitrust litigation		3,158		—		—
Restructuring charges		403		15,445		—
Adj. non-GAAP operating profit	$	216,634	$	201,598		7.5

Nine Months

Consolidated Operating Income

	Nine months ended Sept. 30,
	2007			2006		% Change
GAAP operating income	$	623,818		$	614,070		1.6
Other items:
Antitrust litigation		125,258			1,350		—
Restructuring charges		9,105			17,495		-48.0
Impact of sale of corporate headquarters, net		(98,403	)		—		—
Adj. non-GAAP operating income	$	659,778		$	632,915		4.2

Consolidated Net Earnings

	Nine months ended Sept. 30,
	2007			2006			% Change
GAAP net earnings	$	381,084		$	368,653			3.4
Income from discontinued operations		—			(3,890	)		—
GAAP net earnings from continuing operations		381,084			364,763			4.5
Other items (net of taxes):
Antitrust litigation		79,770			846			—
Restructuring charges		5,818			11,092			-47.5
Impact of sale of corporate headquarters, net		(62,890	)		—			—
Adj. non-GAAP net earnings	$	403,782		$	376,701			7.2

Consolidated diluted E.P.S.

	Nine months ended Sept. 30,
	2007			2006			% Change
GAAP diluted E.P.S.	$	2.37		$	2.27			4.4
Income from discontinued operations		—			(.02	)		—
GAAP diluted E.P.S. from continuing operations		2.37			2.25			5.3
Other items (net of taxes):
Antitrust litigation		.50			.01			—
Restructuring charges		.04			.07			-42.9
Impact of sale of corporate headquarters, net		(.39	)		—			—
Adj. non-GAAP diluted E.P.S.	$	2.52		$	2.33			8.2

Smokeless Tobacco Segment Operating Profit

	Nine months ended Sept. 30,
	2007		2006		% Change
GAAP operating profit	$	507,821	$	597,295		-15.0
Other items:
Antitrust litigation		125,258		1,350		—
Restructuring charges		6,889		15,445		-55.4
Adj. non-GAAP operating profit	$	639,968	$	614,090		4.2

UST
SUPPLEMENTAL SCHEDULE
(Unaudited)

	Third Quarter						Nine months ended Sept. 30,
	2007		2006		% Chg.		2007		2006		% Chg.
Smokeless Tobacco
Net Sales (mil)	$	384.1	$	377.3		+1.8	$	1,150.5	$	1,142.6		+0.7
Adj. Non-GAAP Oper. Profit (mil)	$	216.6	$	201.6		+7.5	$	640.0	$	614.1		+4.2
MST Net Can Sales
Premium (mil)		139.0		135.4		+2.7		414.9		407.4		+1.9
Price Value (mil)		26.2		22.5		+16.3		75.3		67.9		+10.8
Total (mil)		165.2		157.9		+4.6		490.2		475.3		+3.1

	Volume %				Point
MST Share Data	Chg. vs.				Chg. vs.
RAD-SVT 26 wks ended 9/8/07(1)	YAGO	Share			YAGO
Total Category	+6.7%
Total Premium Segment	+1.3%		56.1	%	-3.0 pts
Total Value Segments	+14.5%		43.8	%	+3.0 pts
USSTC Share of Total Category	+ 3.5%		61.0	%	-1.9 pts
USSTC Share of Premium Segment	+2.1%		91.1	%	+0.7 pts
USSTC Share of Value Segments	+11.3%		22.7	%	-0.6 pts

(1) RAD-SVT — Retail Account Data Share & Volume Tracking System. RAD-SVT information is being provided as an indication of current domestic moist smokeless tobacco industry trends from wholesale to retail and is not intended as a basis for measuring the company’s financial performance. This information can vary significantly from the company’s actual results due to the fact that the company reports net shipments to wholesale, while RAD-SVT measures shipments from wholesale to retail, the difference in time periods measured, as well as new product introductions and promotions.

	Third Quarter						Nine months ended Sept. 30,
	2007		2006		% Chg.		2007		2006		% Chg.
Wine
Net Sales (mil)	$	82.3	$	69.5		+18.3	$	230.6	$	187.8		+22.8
Operating Profit (mil)	$	12.7	$	9.4		+34.1	$	35.1	$	27.4		+28.1
Premium Case Sales (thou)		1,224		1,087		+12.6		3,541		3,068		+15.4
Other
Net Sales (mil)	$	13.3	$	11.9		+11.8	$	36.8	$	34.7		+6.0
Operating Profit (mil)	$	4.2	$	4.3		-3.3	$	13.1	$	12.0		+9.9