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CORRECTING and REPLACING Statement from Joseph Phelps Vineyards Counsel Ed Rosenfeld

SAN FRANCISCO-(Business Wire)-October 2, 2008 - Please replace the release dated October 1, 2008 with the following corrected version due to multiple revisions.

The corrected release reads:

STATEMENT FROM JOSEPH PHELPS VINEYARDS COUNSEL ED ROSENFELD

The following is a statement issued by Ed Rosenfeld of Bryan Cave LLP, counsel to Joseph Phelps Vineyards:

Throughout this entire matter we have taken pains to refrain from issuing public comments in part out of respect for the health care challenges related to one of the families involved in the litigation. However, given today’s decision to issue a press release more than twenty days after it was already made clear that the arbitration ruling is going to be reviewed by the California court and written in a way that is designed to mislead the public about the case, we believe it is important to make clear the facts of the case and how our system of justice works

In 2004, Messrs. Shelton and Williams entered into and signed an agreement with the Phelps Winery. The agreement resulted in the two men receiving $35 million, making them amongst the highest paid people in the history of the wine industry.

In 2007, three years after accepting the $35 million, Messrs. Shelton and Williams decided that $35 million was not enough money and sued to declare that the agreement that they signed was unenforceable. The Phelps Winery filed claims against the two men asserting a breach of contract and fraud in response.

On September 9, 2008, more than twenty days ago, an arbitrator issued an award that was one fifth the size of what Messrs. Shelton and Williams asked for when they filed their claims. At the time of the September 9th ruling, it was made clear that the case was going to be reviewed by a state court, which is where the matter stands today, notwithstanding a press release issued more than two weeks after the fact and given to reporters late in the day to suggest that this was somehow new news.

Pursuant to how the American system of justice works, this case is long from being determined either way. For the Company’s part, it is going to continue to focus on what we do best – producing great wine.

BACKGROUND ON JOSEPH PHELPS VINEYARDS:

Founded in 1972, Joseph Phelps Vineyards is an independent, estate-based winery located outside of St. Helena. Perched on a knoll in bucolic Spring Valley, the graceful redwood winery overlooks vineyard-studded hills, the town of St. Helena and the Mayacamas Mountains to the west.

After years of studying the complex relationship between wine quality and place, and understanding the importance of "terroir," Phelps has developed estate-owned vineyards in the premiere growing regions of Stag's Leap, Rutherford, Oakville, Oak Knoll and the eastern foothills of Napa. In Sonoma County, an ambitious project was undertaken in 1999 to purchase land and develop vineyards along the western frontier of the Sonoma Coast, and today Phelps has 80 acres of Pinot Noir and 20 acres of Chardonnay planted in Freestone. A small winery in the midst of the Freestone vineyards is currently under construction.

Varietals produced annually at Phelps include Napa Valley Cabernet Sauvignon, Backus Vineyard Cabernet Sauvignon, Insignia (one of California's most successful first growth luxury blends), Chardonnay, Sauvignon Blanc, several Rhône-style wines, and a luscious dessert wine made from Scheurebe.

Annual production fluctuates between 65-80,000 cases, and it is a source of pride that 90% of all wine produced comes from estate-owned vineyards.

Long known for his innovative spirit and passion for quality, Joe Phelps pioneered a number of "firsts" in the early years of the winery. The 1974 Insignia — released in the spring of 1978 — was the first Bordeaux-style blend produced in California under a proprietary label. The release of the 1974 Syrah in 1977 sparked industry-wide interest in a remarkable French varietal whose plantings in California had disappeared and been virtually forgotten for over half a century. And in 1990, after years of research, a whole new family of Rhône-style wines was introduced which today includes Syrah, Viognier and a Chateauneuf-du-Pape style blend called Le Mistral.

The architecture of the winery reflects the same commitment to quality and attention to detail as the wines crafted within. A massive Wisteria-covered trellis made from 100-year-old recycled bridge timbers dominates the entranceway, visually anchoring the redwood building to the surrounding terrain. From the tree-shaded back terrace, visitors are offered a spectacular view of Spring Valley, St. Helena, and the Mayacamas Mountains to the west.

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