EXHIBIT 99.1
The Robert Mondavi Corporation Announces Departure of R. Michael
Mondavi from the Board of Directors
NAPA, Calif.--(BUSINESS WIRE)--Oct. 4, 2004--The Robert Mondavi
Corporation (NASDAQ:MOND) today announced that on October 1, 2004, the
Nominating and Governance Committee of its Board of Directors sent a
letter to Mr. R. Michael Mondavi to request Mr. Mondavi's resignation
as a director as a result of the quotations and the information
attributed to Mr. Mondavi in the press. The letter stated that Mr.
Mondavi's statements violated the confidentiality of board discussions
and undermined the board's efforts to conduct a fair process for the
disposition of company assets which maximizes shareholder value.
Mr. Michael Mondavi submitted his resignation, effective
immediately, on October 4, 2004.
"We thank Michael Mondavi for his years of service and wish him
well," said Ted Hall, Chairman of the Board for The Robert Mondavi
Corporation.
Important Information For Investors And Shareholders
In connection with the proposed recapitalization plan, The Robert
Mondavi Corporation will file a combined proxy statement/prospectus
and other relevant documents with the Securities and Exchange
Commission (the "SEC"). INVESTORS AND SHAREHOLDERS ARE URGED TO READ
THE PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AS IT WILL
CONTAIN IMPORTANT INFORMATION ABOUT THE RECAPITALIZATION PLAN AND
RELATED MATTERS. INVESTORS AND SHAREHOLDERS WILL HAVE ACCESS TO FREE
COPIES OF THE PROXY STATEMENT/PROSPECTUS (WHEN AVAILABLE) AND OTHER
DOCUMENTS FILED WITH THE SEC BY THE COMPANY THROUGH THE SEC WEB SITE
AT WWW.SEC.GOV. THE PROXY STATEMENT/PROSPECTUS AND RELATED MATERIALS
MAY ALSO BE OBTAINED FOR FREE (WHEN AVAILABLE) FROM THE COMPANY BY
DIRECTING A REQUEST TO THE COMPANY'S INVESTOR RELATIONS DEPARTMENT AT
841 LATOUR COURT, NAPA, CA 94558; TELEPHONE (707) 251-4850; E-MAIL
MOND@ROBERTMONDAVI.COM.
The Company and its directors, executive officers, certain members
of management and employees may be deemed to be participants in the
solicitation of proxies in connection with the proposed merger.
Information regarding the persons who may, under the rules of the SEC,
be considered to be participants in the solicitation of the Company's
shareholders in connection with the proposed recapitalization plan is
set forth in the Company's annual report on Form 10-K for the fiscal
year ended June 30, 2004 filed with the SEC on September 10, 2004 and
proxy statement for its 2003 annual meeting of shareholders filed with
the SEC on October 28, 2003. Additional information regarding such
persons and a description of their direct and indirect interests in
the recapitalization plan will be set forth in the proxy
statement/prospectus when it is filed with the SEC.
Cautionary Statement Regarding Forward-Looking Statements
This announcement and other information provided from time to time
by the company contain historical information as well as
forward-looking statements about the company, the premium wine
industry and general business and economic conditions. Such
forward-looking statements include, for example, projections or
predictions about the company's future growth, the announced
restructuring and the amount of the related charges, the estimate of
proceeds from the sale of assets, consumer demand for its wines,
including new brands and brand extensions, margin trends, anticipated
future investment in vineyards and other capital projects, the premium
wine grape market and the premium wine industry generally. Actual
results may differ materially from the company's present expectations.
Among other things, a soft economy, a downturn in the travel and
entertainment sector, risk associated with continued conflict in the
Middle East, reduced consumer spending, or changes in consumer
preferences could reduce demand for the company's wines. Similarly,
increased competition or changes in tourism to our California
properties could affect the company's volume and revenue growth
outlook. The supply and price of grapes, the company's most important
raw material, is beyond the company's control. A shortage of grapes
might constrict the supply of wine available for sale and cause higher
grape costs that put more pressure on gross profit margins. A surplus
of grapes might allow for greater sales and lower grape costs, but it
might also result in more competition and pressure on selling prices
or marketing spending. Interest rates and other business and economic
conditions could increase significantly the cost and risks of
projected capital spending. The restructuring announced on September
14, 2004 may impair management's ability to focus on other needed
areas of business execution. There are also significant risks
associated with the restructuring, including the divestiture of the
company's luxury wine assets and investments and non-strategic assets
announced on September 14, 2004. There is no assurance that the
company will successfully complete the divestitures within the
company's expected timeframe or at all, or that it will realize the
after-tax proceeds it presently estimates for such divestitures. There
is no assurance the company will be able to effectively re-deploy any
proceeds received from such divestitures. The lay-offs and significant
restructuring charges announced in connection with the company's
September 14, 2004 restructuring will materially affect future
earnings. There is no assurance that the proposed restructuring will
enable the company to achieve significant cost savings or asset
rationalization, or if any cost savings or assets rationalization is
achieved, that it will be sufficient to grow the company's volumes,
profit or cash flow, or to enhance the company's competitive position.
For additional cautionary statements identifying important factors
that could cause actual results to differ materially from such
forward-looking information, please refer to Item 7, "Management's
Discussion and Analysis of Financial Condition and Results of
Operations," in the company's Annual Report on Form 10-K for the
fiscal year ended June 30, 2004, on file with the Securities and
Exchange Commission. For these and other reasons, no forward-looking
statement by the company can nor should be taken as a guarantee of
what will happen in the future.
CONTACT: The Robert Mondavi Corporation
Robert Philipps, 707-251-4850
VP, Treasury and Investor Relations
Hilary Martin, 707-251-4487
VP, Corporate Communications