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Vintage chief executive officer Richard Shell saidthat strong commitments already exist for some of the larger properties, and "We're cautiously optimistic we will be able to sell them all by the end of the year." It will distribute the proceeds to its investors, largely qualified fund mangers and institutional investors.

The San Rafael-based firm announced in June 2007 that it had hired Deutsche Bank Securities Inc. to explore "strategic alternatives, including a possible sale or merger of the company, in order to enhance stockholder value."

Shell says the vote of the stockholders yesterday to liquidate partly reflected progress made toward disposing of assets.

Though the U.S. economy is weak, and commercial and residential real estate values have been plummeting, it may ironically be a good time to sell vineyard properties. In addition to being viewed as prime assets, shortages are developing in some grapes, particularly after this year's heat and freeze episodes. These shortages include Chardonnay, prime constituents of some of Vintage Trust's larger properties.

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In addition, these vineyard properties' values were underwritten by cash flow from grape sales.

Well-known industry grape and wine broker Joseph W. Ciatti, chairman and chief executive officer of Vintage Trust (VWT), and Shell, a former executive of the company that now owns Wines & Vines, had formed the company in March 2005 and raised $159.4 million in a private offering of common stock. It also secured debt financing of up to $250 million, providing total initial capital of approximately $400 million.

As of last year, VWT had acquired $170 million in two wineries and 13 vineyards totaling more than 6,000 acres in California. The properties were leased back to the sellers or to third-party lessees.

Walter Klenz, former managing director of Beringer Blass Wine Estates, is also a director of the trust.

Vic Motto of Global Wine Partners, who is developing another wine industry REIT, International Wine Investment Fund, believes this model is viable in spite of Vintage Trust's decision to close. "This is a long-term business, and you can't expect quick returns such as by trying to go public quickly. We started 4 years ago, and knew it would take time to educate the market. We also partnered with a New York Stock Exchange-listed REIT, so we have both capital and experience."

Among VWT's holdings were 37-acre Hopland Winery in southern Mendocino County, which was leased back to Weibel Inc., and a 100-acre Edna Valley Vineyard and Winery in San Luis Obispo County.

It also acquired a number of vineyards: 667-acre San Mateo Vineyard in Fresno County, planted primarily in table grapes, plus 37 acres Muscat and 112 acres Symphony; 624-acre Pope Creek Ranch in Madera County; 769-Gravelly Ford Vineyard in the Central Valley, leased to Carson Smith Farming Company Inc.; 1,408-acre Terra Ventosa Vineyard in Central Monterey County; 1,445-acre Sweetwater Vineyard in Monterey County; 424-acre Iron Corral Vineyard in Napa Valley, leased back to Foster's Wine Estate-Americas; 589-acre Huichica Hills Vineyard in Napa and Sonoma counties--major varieties: Chardonnay, Pinot Noir, Merlot; 73-acre Matchbook Vineyards in Yolo County; and 278-acre Dunnigan Vineyard in Yolo County, leased to Sirius Vineyards LLC.

The trust also owned, and was developing, the Cameron Wine Storage Facility in Napa, a wine storage and transfer facility consisting of a warehouse with capacity to store 2.5 million gallons of bulk wine and a tanker truck sanitation facility. The project is expected to be completed in August 2008.

About Vintage Wine Trust:
Vintage Wine Trust, (VWT), is a Real Estate Investment Trust "REIT" that enables wine companies and grape growers to outsource their vineyards and other real estate assets and release capital for investment in higher returning areas and expansion, in order to increase profitability.

Vintage Wine Trust is the only REIT in the U.S. to focus solely on the wine grape industry. VWT invests in vineyards and other wine industry assets including crushing, processing and storage facilities, and simultaneously enters into specialty-finance leases with branded wineries, bulk wine producers and independent grape growers as operating-lessees in the U.S. and Canada.

VWT completed its private offering of common stock for $159.4 million in March 2005, and is securing debt financing of up to $250 million, providing total initial capital of approximately $400 million. As of June 2007, VWT has acquired $143 million of vineyards and wineries which have been leased back to the sellers or to third-party lessees.

VWT's strategy is to be the leading provider of specialty-finance real estate capital to the wine industry, both private family businesses and multi-national public companies.

Source: “Vintage Wine Trust selling assets,” Paul Franson, Wine & Vine, San Rafael, Calif.--May 29, 2008

VINTAGE WINE TRUST PROPERTY PORTFOLIO:
PROPERTIES:
Fresno County
San Mateo Vineyard

Madera County
Pope Creek Ranch
Gravelly Ford Vineyard

Mendocino County
Hopland Winery

Monterey County
Terra Ventosa Vineyard
Sweetwater Vineyard

Napa County
Iron Corral Vineyard
Cameron Wine Storage Facility

Napa/Sonoma Counties
Huichica Hills Vineyard

San Luis Obispo County
Edna Valley vineyard and winery

Yolo County
Matchbook Vineyards
Dunnigan Vineyard