Southern Wine & Spirits of America, Inc. Granted Permit to Operate in Texas

Business Wire, March 4, 2008

Texas Alcoholic Beverage Commission Approval Boosts Company's National Coverage to Top Five U.S. Wine & Spirits Markets and Brings Total to 30 States Where Company is Recognized

MIAMI -- Southern Wine & Spirits of America, Inc., the Nation's Leading Wine and Spirits Distributor and Control States Broker with a tradition of service excellence since 1968 and proud to be celebrating its 40th anniversary, today announced the Company's Texas subsidiary, Southern Wine & Spirits of Texas, Inc., had obtained a wholesaler's permit to operate in Texas as a statewide wine and spirits distribution operation, this following approval of its application with the Texas Alcoholic Beverage Commission (TABC).

Commenting on the significance of obtaining its Texas permit to operate, Wayne E. Chaplin, President and Chief Operating Officer of Southern Wine & Spirits of America, Inc. said, "With the approval to operate in Texas, Southern Wine & Spirits of Texas begins plans to bring the highest levels of service and professional excellence - qualities for which we are known nationally - to the Lone Star State."

Mr. Chaplin added, "With the addition of our Texas division, Southern Wine & Spirits of America will be the only major wine and spirits distributor licensed in each of the nation's top five wine and spirits markets, include California, New York, Florida, Texas and Illinois, which together account for an estimated 41 percent of total wine and spirits consumption in the United States. With a presence in 30 states nationwide, Southern Wine & Spirits of America would now be able to cover in excess of 72 percent share of the total U.S. wine and spirits market based on consumption; this figure represents an unrivalled and historic level of sales and service coverage for both our customer and supplier partners."

Harvey R. Chaplin, Chairman and Chief Executive Officer of Southern Wine & Spirits of America, Inc., said: "We are extremely pleased and excited about the prospect of beginning operations in Texas, where we see many opportunities to extend our industry-leading sales efforts and operational skills in one of the largest and most important wine and spirits markets in the United States. We look forward to serving the Texas-based local, regional and national on- and off-premise customers as well as all of the future supplier partners who will join us in Texas. Any interested supplier should feel free to contact me at our Miami, Florida Headquarters."

Commenting on the future of Southern's entry into the key Texas market, Mr. Chaplin said: "Our options are numerous as we look towards either acquiring an existing business or establishing a brand new distributorship from the ground up. No matter the route to business, the final decision will certainly take into account the sales, marketing, personnel and operational needs of both our suppliers and retail partners, all of which will be facilitated by and benefit from the synergies of not only our industry-leading sales and marketing capabilities, but also from our proven organizational excellence. Once started, we expect to make an immediate impact."

Referring to the Company's licensing, Mr. Chaplin explained, "We worked closely with TABC officials in obtaining a permit to operate; their actions and cooperation were instrumental and can best be described as Professional."

Pertinent Texas Facts & Figures:

According to the U.S. Census Bureau (USCB), the estimated 2006 population of Texas is 23.5 million residents, making it the second most populous state in the United States behind California's 36.5 million inhabitants. The remaining states in the top 5 include New York at 19.3 million, Florida at 18.1 million and Illinois at 12.8 million.

In terms of total wine and spirits sales volume, the state of Texas ranks number four nationally (behind California, New York and Florida and ahead of Illinois), with combined 2006 wine and spirits sales of 23.8 million nine-liter cases, according to the Adams Liquor and Wine Handbooks, independent sources of U.S. drinks industry sales and research data. On a market share basis, Texas wine and spirits volume accounted for approximately 5.2 percent of total U.S. wine and spirits consumption in 2006, the latest year for which data is available.

About Southern Wine & Spirits of America, Inc.

Southern Wine & Spirits of America, Inc. is the nation's Leading Wine and Spirits Distributor and Control States Broker with a forty-year tradition of service excellence since 1968, with operations in 30 states, including Texas. The Company currently operates in: Alabama, Arizona, California, Colorado, Delaware, Florida, Kentucky, Hawaii, Illinois, Maine, Mississippi, New Hampshire, New Jersey, Nevada, New Mexico, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Vermont, Virginia, and West Virginia. The Company has a strategic partnership with Alaska Distributors Co. of Seattle, Washington, called Southern Wine/Spirits West, a joint venture that has wine and spirits brokerage operations across the Northwest Control States of Idaho, Montana, Oregon, Utah, Washington, and Wyoming. On a national basis, Southern Wine & Spirits of America, Inc. employs more than 10,500 team members. For more information contact: www.southernwine.com.