2007 Financial Model Casadelsol

Drivers Total Visitors to Paso Robles Wineries Growth Rate for Total Visitors to Winery

YE08 YE09 1,000,000 1,030,000 3.00%

Total Number of Wineries in Paso Robles with Tasting Rooms

100

Average # of Winery Visits Per Visitor

3.00

Seasonality of Seasonality of Visitors as a Percentage of Total Visitors/Qtr Average Purchase per Visitor Percentage of Visitors to Purchase thru Wine Clubs, Mail and Internet Average Retail Price/Bottle

Q1 15.00% $42.54 20.00% $20

Cost of Sales Wholesale Cost of Wine/Bottle

$11.25

Selling, General and Administrative Utilities, Insurance, Supplies Dues, Licenses, Permits Maintenance and Repairs Advertising and Promotion

2.25% 0.10% 0.25% 3.00%

Salaries CEO VP of Operations Tasting Room Manager Tasting Staff Member Tasting Staff Member Tasting Staff Member Other

$133,167 $96,211 $49,519 $24,726 $24,726 $24,726

Q2 25.00%

YE10 YE11 YE12 1,060,900 1,092,727 1,125,509

Q3 35.00%

Q4 25.00%

1Q08 Revenues Tasting Room Sales CRM Sales

2Q08

3Q08

4Q08

YE08

255240 191430 63810

382860 319050 63810

510480 446670 63810

382860 319050 63810

1531440 1276200 255240

4500 1500 1064

7500 1500 1596

10500 1500 2128

7500 1500 1596

30000 6000 6384

Cost of Sales Cost of Wine (Bottle Sales) % of Revenue

143644 143644 56.28%

215466 215466 56.28%

287289 287289 56.28%

215466 215466 56.28%

861866 861866 56.28%

SG & A Utilities, Insurance, Supplies Dues, Licenses, Permits Maintenance and Repairs Advertising and Promotion Salaries

102562 5743 255 638 7657 88269

109709 8614 383 957 11486 88269

116856 11486 510 1276 15314 88269

109709 8614 383 957 11486 88269

438836 34457 1531 3829 45943 353075

9033

57685

106336

57685

230738

Cost and SG&A

246207

325175

404144

325175

1300702

First Quarter of operating costs First 2 Quarters of operating costs

246207 571382

Total Winery Visits Total CRM Visits Total Cases

EBIT

1Q09

2Q09

3Q09

4Q09

YE09

1Q10

2Q10

262897 197173 65724

394346 328622 65724

525794 460070 65724

394346 328622 65724

1577383 1314486 262897

270784 203088 67696

406176 338480 67696

4635 1545 1096

7725 1545 1644

10815 1545 2192

7725 1545 1644

30900 6180 6576

4774 1591 1129

7957 1591 1693

147954 147954 56.28%

221930 221930 56.28%

295907 295907 56.28%

221930 221930 56.28%

887722 887722 56.28%

152392 152392 56.28%

228588 228588 56.28%

102991 5915 263 657 7887 88269

110352 8873 394 986 11830 88269

117713 11830 526 1314 15774 88269

110352 8873 394 986 11830 88269

441408 35491 1577 3943 47321 353075

103433 6093 271 677 8124 88269

111015 9139 406 1015 12185 88269

11953

62063

112174

62063

248253

14959

66573

250945

332283

413621

332283

1329130

255825

339603

3Q10

4Q10

YE10

1Q11

2Q11

3Q11

4Q11

541568 473872 67696

406176 338480 67696

1624705 1353921 270784

278908 209181 69727

418361 348635 69727

557815 488088 69727

418361 348635 69727

11139 1591 2258

7957 1591 1693

31827 6365 6773

4917 1639 1163

8195 1639 1744

11474 1639 2325

8195 1639 1744

304785 304785 56.28%

228588 228588 56.28%

914354 914354 56.28%

156964 156964 56.28%

235446 235446 56.28%

313928 313928 56.28%

235446 235446 56.28%

118597 12185 542 1354 16247 88269

111015 9139 406 1015 12185 88269

444058 36556 1625 4062 48741 353075

103888 6275 279 697 8367 88269

111697 9413 418 1046 12551 88269

119506 12551 558 1395 16734 88269

111697 9413 418 1046 12551 88269

118187

66573

266293

18056

71218

124381

71218

423381

339603

1358412

260852

347143

433434

347143

YE11

1Q12

2Q12

3Q12

4Q12

YE12

1673446 1394538 278908

287275 215456 71819

430912 359094 71819

574550 502731 71819

430912 359094 71819

1723649 1436374 287275

32782 6556 6976

5065 1688 1198

8441 1688 1796

11818 1688 2395

8441 1688 1796

33765 6753 7185

941784 941784 56.28%

161673 161673 56.28%

242509 242509 56.28%

323346 323346 56.28%

242509 242509 56.28%

970038 970038 56.28%

446788 37653 1673 4184 50203 353075

104356 6464 287 718 8618 88269

112400 9696 431 1077 12927 88269

120444 12927 575 1436 17236 88269

112400 9696 431 1077 12927 88269

449599 38782 1724 4309 51709 353075

284874

21246

76003

130760

76003

304012

1388572

266029

354909

443789

354909

1419637

YE08

YE09

YE10

YE11

YE12

Total Revenue

$1,531,440

$1,577,383

$1,624,705

$1,673,446

$1,723,649

Cost of Sales

$861,866

$887,722

$914,354

$941,784

$970,038

Gross Profit % of Revenue

$669,574 43.72%

$689,661 43.72%

$710,351 43.72%

$731,662 43.72%

$753,612 43.72%

SG&A % of Revenue

$438,836 28.66%

$441,408 27.98%

$444,058 27.33%

$446,788 26.70%

$449,599 26.08%

EBIT % of Revenue

$230,738 15.07%

$248,253 15.74%

$266,293 16.39%

$284,874 17.02%

$304,012 17.64%

Valuation Inputs Investment Rate of Return (IRR) Required Capital** Term Year 5 Net Income Year 5 Price-to-Earning Ratio (PER)

30% $900,000 5 Years $304,012 20

Basic Valuation Model (No dilution) Required Future Value (Investment)

=

$3,341,637

Total Terminal Value

=

$6,080,240

Final Ownership Required by Investor

=

54.96%

** 2 QTR of operating costs + buffer and 300K for property staging

http://www.winebusiness.com/ReferenceLibrary/webarticle.cfm?dataId=45483 http://www.winebusiness.com/ReferenceLibrary/webarticle.cfm?dataId=42351 http://www.prcity.com/business/pdf/EconomicImpactReport6-2007opt.pdf http://findarticles.com/p/articles/mi_m3488/is_n3_v75/ai_15400263 http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2007/04/27/WIG58PC2PM1.DTL