Magnotta Winery Corporation Announces April 30, 2008 Results

Market Wire, June, 2008

Magnotta Winery Corporation (TSX: MGN), is pleased to announce the release of its financial results for the first quarter ended April 30, 2008.

Net sales for the quarter ended April 30, 2008 increased 1.9% to $6,063,409 from $5,949,046. Net earnings increased 2.9% to $867,790 from $843,295 and the basic and diluted earnings per share remained constant at $0.06. The overall growth in net sales for the quarter resulted from greater volumes due to an expanded customer base and a continued emphasis on branding through its marketing campaign supported by a strong media and print campaign. This has created more brand awareness. The Company also decided to sell more of its Chilean grapes to third parties in the first quarter ended April 30, 2008 versus April 30, 2007 as it was able to negotiate higher prices for its grapes in Chile. However, due to the snow storms and inclement weather during February and March in Southern Ontario, overall growth was tempered.

Overall gross profit margin for the quarter ended April 30, 2008 decreased to 48.6% from 49.9% for the corresponding period of the prior year. The change in the gross profit margin is due to increased cost pressures for raw and packaging materials, energy costs, as well as higher Ontario grape prices in the first quarter of fiscal 2009 versus fiscal 2008. These cost pressures were mitigated somewhat by the strength of the Canadian dollar.

Selling, administration and other expenses were $1,027,100 for the three months ended April 30, 2008 compared to $1,012,436 for the corresponding period of the prior year. As a percentage of net sales, selling, administration and other expenses decreased slightly to 16.9% for the quarter compared to 17.0% for the quarter of the previous year.

Interest expense for the three months ended April 30, 2008 decreased to $220,776 compared to $232,922 for the three month period ended April 30, 2007. The decrease is due to lower long-term debt outstanding during the respective period.

Earnings before interest, income taxes and depreciation decreased marginally to $1,921,965 from $1,955,090 at April 30, 2007. These changes were principally impacted by a small increase in selling, administration and other expenses and by a reduction in gross margin.

Additional details and information are found in the Management Discussion and Analysis for the quarter ended April 30, 2008 as well as on www.sedar.com .

The common shares of Magnotta trade on the TSX under the symbol "MGN".

Readers are cautioned that some of the statements contained in this release may be forward-looking statements, such as expectations, estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition to exist or occur. Generally, these forward-looking statements can be identified by the use of terminology such as "outlook", "anticipate", "believe", "estimate", "expect", "intend", "should", and similar expressions. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ from those currently anticipated in such statements by reason of factors such as, but not limited to, changes in general economic and market conditions. Magnotta disclaims any intention or obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or results, or otherwise.

MAGNOTTA WINERY CORPORATION
Interim Consolidated Financial Statements - Unaudited
Three Months Ended April 30, 2008

MAGNOTTA WINERY CORPORATION

Notice To Reader of the Interim Consolidated Financial Statements

Three months ended April 30, 2008

The consolidated financial statements of Magnotta Winery Corporation and the accompanying interim consolidated balance sheet as at April 30, 2008 and the interim consolidated statement of earnings, comprehensive income and retained earnings and cash flows for the three month period then ended are the responsibility of the Company's management. These consolidated financial statements have not been audited or reviewed on behalf of the shareholders by the independent external auditors of the Company, KPMG LLP.

The interim consolidated financial statements have been prepared by management and include the selection of appropriate accounting principles, judgments and estimates necessary to prepare these financial statements in accordance with Canadian generally accepted accounting principles.