eVineyard Acquires Wine.com

National Online Wine Retailer eVineyard(R) Leverages Efficient Business Model

And Management Expertise to Acquire Wine.com and Wineshopper.com



Apr 27, 2001, 01:00 ET from eVineyard

    PORTLAND, Ore., April 27 /PRNewswire/ -- National online wine retailer
 eVineyard (www.evineyard.com) today announced its acquisition of Wine.com,
 including the Wine.com and Wineshopper.com URLs, and all of the goodwill and
 other assets of the Wine.com service.  eVineyard purchased Wine.com yesterday
 from Palo Alto-based Sand Hill Capital II, L.P.  eVineyard CEO Larry Gerhard
 hailed the acquisition as "affirmation that the eVineyard business model, that
 of a legally licensed wine retailer, is the only truly viable model in the
 space.  Legal compliance should be a given," he said, "with company resources
 focused on the development of superior customer service and retention."  Both
 parties declined to comment on the actual purchase specifics, citing SEC rules
 for financial disclosures.
     Industry analysts had predicted the ultimate consolidation of the online
 wine retail space as much as three years ago.  Notably, Solomon, Smith, Barney
 had published a report estimating that the online wine retail market would be
 worth some $1.5 billion of the estimated $15 billion wine market by 2003.
 "The customer-focused allocation of our resources and the efficient size of
 the eVineyard staff allowed us to make fast, economical decisions for
 preeminence in the space," said Chris Kitze, vice-chairman of the eVineyard
 Board of Directors.
     iTech Partners, Angel Investors, Osprey Venture Capital, and
 Bear Creek Corporation (owner of Harry & David and other substantial
 businesses), together with private investors who provided the $20+ million
 that has driven eVineyard to this point, are poised to reap the rewards of a
 visionary investment.  By contrast, a group of prominent investors provided
 Wine.com and Wineshopper.com with funding in excess of $200 million in their
 bid for the top slot in the space.  John Grillos, chairman of the eVineyard
 Board, noted that the eVineyard business model combined with the loyal
 revenue-generating customers of the company virtually ensure that it will
 exceed its most optimistic revenue goals by year-end.  "eVineyard intended
 from the beginning to be the undisputed leader in online wine retailing," said
 Grillos.  "We've achieved that with this acquisition."
     eVineyard currently has 50 employees.  That number will immediately
 increase with the addition of more people in customer service and operations
 to ensure that the company maintains its rapid delivery and high customer
 satisfaction ratings.
     For most customers, the transition will be seamless.  Customers residing
 in or purchasing wine for delivery in the 27 states for which eVineyard is
 legally licensed to sell wine will be transferred to the eVineyard site where
 they will have access to the retailer's broad selection of over 5000 popular
 and boutique wine brands and accessories.  The Wine.com customers in 13 other
 states will have access to accessories at this point, and steps will be taken
 to meet their wine needs at the earliest possible date.
 
     About eVineyard
     The fastest growing online national wine retailer in the United States,
 eVineyard (www.evineyard.com) serves 50 states-legally serving wine buyers in
 27 states and Japan and selling gifts and accessories in 23 more.  eVineyard
 offers a selection of over 5,000 domestic and imported premium wines and has
 exceptional features such as online education, promotions and loyalty
 programs, sweepstakes events and a wine club.
     With its ten current logistic centers, eVineyard sells premium wines to
 each of the country's top 10 wine markets, reaching over 75% of the
 United States market for off-premise premium wine sales.  The company expects
 to achieve profitability in 2001.
 
     Editors: eVineyard is legally licensed to sell and ship wine in the
 following states:  Alaska, California, Colorado, Florida, Idaho, Illinois,
 Iowa, Louisiana, Massachusetts, Minnesota, Missouri, Montana, Nebraska,
 Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina,
 North Dakota, Ohio, Oregon, Texas, Virginia, Washington, West Virginia, and
 Wisconsin
     eVineyard has logistics centers in California, Florida, Massachusetts,
 New Jersey, New York, North Carolina, Ohio, Oregon, Texas, and Virginia
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X54828537
 
 

SOURCE eVineyard
    PORTLAND, Ore., April 27 /PRNewswire/ -- National online wine retailer
 eVineyard (www.evineyard.com) today announced its acquisition of Wine.com,
 including the Wine.com and Wineshopper.com URLs, and all of the goodwill and
 other assets of the Wine.com service.  eVineyard purchased Wine.com yesterday
 from Palo Alto-based Sand Hill Capital II, L.P.  eVineyard CEO Larry Gerhard
 hailed the acquisition as "affirmation that the eVineyard business model, that
 of a legally licensed wine retailer, is the only truly viable model in the
 space.  Legal compliance should be a given," he said, "with company resources
 focused on the development of superior customer service and retention."  Both
 parties declined to comment on the actual purchase specifics, citing SEC rules
 for financial disclosures.
     Industry analysts had predicted the ultimate consolidation of the online
 wine retail space as much as three years ago.  Notably, Solomon, Smith, Barney
 had published a report estimating that the online wine retail market would be
 worth some $1.5 billion of the estimated $15 billion wine market by 2003.
 "The customer-focused allocation of our resources and the efficient size of
 the eVineyard staff allowed us to make fast, economical decisions for
 preeminence in the space," said Chris Kitze, vice-chairman of the eVineyard
 Board of Directors.
     iTech Partners, Angel Investors, Osprey Venture Capital, and
 Bear Creek Corporation (owner of Harry & David and other substantial
 businesses), together with private investors who provided the $20+ million
 that has driven eVineyard to this point, are poised to reap the rewards of a
 visionary investment.  By contrast, a group of prominent investors provided
 Wine.com and Wineshopper.com with funding in excess of $200 million in their
 bid for the top slot in the space.  John Grillos, chairman of the eVineyard
 Board, noted that the eVineyard business model combined with the loyal
 revenue-generating customers of the company virtually ensure that it will
 exceed its most optimistic revenue goals by year-end.  "eVineyard intended
 from the beginning to be the undisputed leader in online wine retailing," said
 Grillos.  "We've achieved that with this acquisition."
     eVineyard currently has 50 employees.  That number will immediately
 increase with the addition of more people in customer service and operations
 to ensure that the company maintains its rapid delivery and high customer
 satisfaction ratings.
     For most customers, the transition will be seamless.  Customers residing
 in or purchasing wine for delivery in the 27 states for which eVineyard is
 legally licensed to sell wine will be transferred to the eVineyard site where
 they will have access to the retailer's broad selection of over 5000 popular
 and boutique wine brands and accessories.  The Wine.com customers in 13 other
 states will have access to accessories at this point, and steps will be taken
 to meet their wine needs at the earliest possible date.
 
     About eVineyard
     The fastest growing online national wine retailer in the United States,
 eVineyard (www.evineyard.com) serves 50 states-legally serving wine buyers in
 27 states and Japan and selling gifts and accessories in 23 more.  eVineyard
 offers a selection of over 5,000 domestic and imported premium wines and has
 exceptional features such as online education, promotions and loyalty
 programs, sweepstakes events and a wine club.
     With its ten current logistic centers, eVineyard sells premium wines to
 each of the country's top 10 wine markets, reaching over 75% of the
 United States market for off-premise premium wine sales.  The company expects
 to achieve profitability in 2001.
 
     Editors: eVineyard is legally licensed to sell and ship wine in the
 following states:  Alaska, California, Colorado, Florida, Idaho, Illinois,
 Iowa, Louisiana, Massachusetts, Minnesota, Missouri, Montana, Nebraska,
 Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina,
 North Dakota, Ohio, Oregon, Texas, Virginia, Washington, West Virginia, and
 Wisconsin
     eVineyard has logistics centers in California, Florida, Massachusetts,
 New Jersey, New York, North Carolina, Ohio, Oregon, Texas, and Virginia
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X54828537
 
 SOURCE  eVineyard