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This news release contains forward-looking information that is based upon assumptions and is subject to risks and
uncertainties as indicated in the cautionary note contained elsewhere in this news release.

GRIMSBY, Ontario – February 8, 2007 – Andrew Peller Limited (“APL” or the “Company”) announced today its
results for the three and nine months ended December 31, 2006.

    Third quarter sales up 6.3% on strong organic growth
    Year-to-date sales rise 8.8% on strong organic growth and contributions from acquisitions
    Net earnings increase 20.0% and 24.6% respectively for three and nine months ended December 31, 2006
    Common per share dividends increased 18%
    Prestigious awards won at key international wine competitions

Sales for the third quarter of fiscal 2007 rose 6.3% to $63.2 million due to solid growth in all of the Company’s trade
channels and the successful launch of new products during the period. For the nine months ended December 31, 2006
sales increased 8.8% to $177.8 million due primarily to the contributions made by acquisitions completed in last
year’s first quarter and the Company’s successful initiatives to grow sales of its premium and ultra-premium wines.

“We were pleased to generate strong solid organic growth in the third quarter,” commented John Peller, President and
CEO. “In addition, the launch of our new XOXO and Croc Crossing brands, as well as our new tetra pak formats for
our Peller Estates’ French Cross, made solid contributions to our growth in the period.”

Gross profit as a percentage of sales remained strong at 41.7% in the third quarter and first nine months of fiscal 2007,
in line with prior year periods. Management anticipates an improvement in gross profit over the long term as
operating synergies and economies of scale are expected to be realized through the acquisitions made in the prior year
and the consolidation of its production operations in Western Canada. Selling and administrative expenses rose
modestly in the third quarter of fiscal 2007 compared to the prior year due to the acquisitions completed last year and
increased costs associated with the new product launches implemented in the period.

As a result of the increased sales earnings before interest, taxes, amortization and unusual items (EBITA) increased
3.2% to $9.3 million for the three months ended December 31, 2006. For the first nine months of fiscal 2007 EBITA
increased 10.2% to $23.4 million.

Net income for the three months ended December 31, 2006 increased 20.0% to $4.1 million or $0.29 per Class A
share from $3.5 million or $0.24 per Class A share last year. For the nine months ended December 31, 2006 net
earnings rose 24.6% to $9.1 million or $0.63 per Class A share compared to $7.3 million or $0.50 per Class A share
last year. The increase in net earnings is due primarily to higher sales and increased EBITA in fiscal 2007, the
reduction in income tax rates during the year and the significant reduction in unusual charges related to the closure of
its Port Moody, B.C. facility and integration of these operations into the Kelowna, B.C facility. Effective October 31,
2006 the Company’s Class A and Class B shares were split on a three for one basis. The impact of the share split has
been applied retroactively to all share capital and per share disclosure amounts.

The Company’s balance sheet remained strong as at December 31, 2006. Working capital was $28.9 million at the end
of the period compared to $26.8 million at March 31, 2006. Inventories have increased to more normal levels during
fiscal 2007 following abnormally low inventory levels during fiscal 2006 resulting from the 2005 short crop in
Ontario that severely reduced grape supply.

Inventories have also increased in fiscal 2007 in support of the higher sales levels realized during the year. Accounts
receivable increased due to increased sales, the impact of excise tax changes and the granting of extended payment
terms to suppliers for the recent launch of tetra paks. Shareholders’ equity at December 31, 2006 rose to $96.0
million or $6.45 per share from $89.6 million or $6.02 per share as at March 31, 2006.

Effective September 30, 2006 the Company increased its common share dividends. The dividend on Class A shares
was increased 18% on an annualized basis to $0.253 per share. The dividend on Class B shares was also increased
18% on an annualized basis to $0.22 per share.

      During the quarter the Company announced a number of prestigious awards at key international wine
       competitions. In October Peller Estates was named the “Best Canadian Wine Producer of the Year” at the
       International Wine and Sprits Competition (IWSC) in London England. The IWSC, now in its 37th year, is the
       world’s oldest and largest international wine tasting competitions and featured entries from 72 countries. At the
       competition Peller Estates won a gold medal for its AP Signature Series Riesling Icewine 2004, one of only
       three gold medals awarded to Canadian producers. In addition silver medals were awarded to Peller Estates for
       its Founder’s Series Cristalle sparkling wine, AP Signature Series Chardonnay ‘Sur Lie’ 2004, AP Signature
       Series Vidal Icewine Oak Aged 2004, and its Private Reserve Trinity Icewine 2004 from British Columbia. In
       addition, a bronze medal was awarded to Peller Estate’s AP Signature Series Cabernet Sauvignon Unfiltered

The Company gained significant exposure with wins at a number of other international competitions:

      Peller Estates (British Columbia) won two gold medals at the 2006 Northwest Wine Summit in Oregon for its
       Private Reserve Chardonnay 2004 and Heritage Series Riesling 2004.
      Peller Estates Private Reserve Trinity Icewine 2004 won gold medals at the Citadelles du Vin and the San
       Francisco International Wine Competition.
      Peller Estates (Ontario) won a gold medal for its Andrew Peller Signature Series Cabernet Franc Unfiltered
       (2004) at the 2006 Austria International Wine Challenge.
      Peller Estates Vidal Icewine (2004) and Oak Aged Icewine (2004) garnered golds at the Vinalies
       Internationales in Paris.
      The Andrew Peller Chardonnay Sur Lie 2004 proved a bona fide winner this year with gold medals at the
       Austria International Wine Challenge, Concours Mondial de Bruxelles, Ontario Wine Awards and Cuvee

“We are extremely pleased to have received these significant awards, a testament to the quality of our wide range of
products. It is also rewarding to see the realization of my grandfather’s dream of producing international award-
winning wines,” Mr. Peller concluded.

During the third quarter, competitions in Canada were held and our wines were very well received.
   At the 2006 Canadian Wine Awards, Red Rooster won the Double Gold/Best in Category for its 2004 Merlot
      Grand Reserve, and 7 bronze medals were also awarded. Calona Vineyards Artist Series Gewurztraminer and
      Pinot Gris 2005 won the Best of Category/Gold. Sandhill won silver medals for the Small Lots two 2003, and
      Small Viognier 2005 and also received 9 bronze medals.
   At the 2006 Okanagan Wine Festival – Best of Varietal Wine, Sandhill won the Double Gold/Best in Category
      for its 2004 Cabernet Franc, silver medals for its Cabernet Franc 2004 and Chardonnay 2005, and 2 bronze
      medals. Red Rooster was awarded silver medals for the 2005 Chardonnay and 2005 Pinot Blanc. Calona
      Vineyards won a Best of Category/Gold for its Artist Series Pinot Noir 2005 and a bronze medal for the Pinot
      Blanc 2005. Peller Estates also won a silver medal for the Peller Estates Private Reserve Pinot Grigio 2005
      and the Peller Estates Heritage Series Gewurztraminer 2005.

        Financial Highlights
         Period Ended December 31,                             Three Months             Nine Months
         (in $,000 except per share* amounts)                   2006      2005          2006       2005
         Sales                                               63,225       59,453     177,773     163,340
         EBITA                                                9,286        9,001      23,416      21,252

         Earnings before unusual items                         6,085       5,906       13,756      12,703
         Unusual items                                          (15)       (355)        (213)       (990)
         Net earnings                                          4,142       3,453        9,074       7,280
         Net earnings per share                                $0.29       $0.24        $0.63       $0.50
         (Basic per Class A share)
         Cash flow from operations                           (3,289)       4,286      (2,311)      11,799
         (after changes in non-cash working capital items)
        Working capital – as at December 31, 2005                                       28,882     42,212
        Shareholders’ equity per share                                                   $6.45      $6.20
    *The impact of the share split has been applied retroactively to per share amounts.

Andrew Peller Limited is a leading producer and marketer of quality wines in Canada. With wineries in British
Columbia, Ontario and Nova Scotia, the Company markets wines produced from grapes grown in Ontario’s Niagara
Peninsula, British Columbia’s Okanagan and Similkameen Valleys and vineyards around the world. The Company’s
award-winning premium and ultra-premium brands include Peller Estates, Trius, Hillebrand, Thirty Bench, Sandhill,
Copper Moon, Calona Vineyards Artist Series and Red Rooster VQA wines. Complementing these premium brands
are a number of popular priced products including Hochtaler, Domaine D’Or, Schloss Laderheim, Royal and Sommet.
With the acquisition of Cascadia Brands Inc., the Company also markets craft beer under the Granville Island brand.
With a focus on serving the needs of all wine consumers, the Company produces and markets consumer-made wine
kit products through Winexpert Inc. and Vineco International Products Inc. In addition, the Company owns and
operates Vineyards Estate Wines and WineCountry Vintners, independent wine retailers in Ontario with more than 100
well-positioned retail locations. Andrew Peller Limited common shares trade on the Toronto Stock Exchange
(symbols ADW.A and ADW.B).

The Company utilizes EBITA (defined as earnings before interest, incomes taxes, depreciation, amortization and
unusual items) and EBUI (defined as earnings before income taxes and unusual items) to measure its financial
performance. EBITA and EBUI are not recognized measures under GAAP. Management believes that EBITA and
EBUI are useful supplemental measures to net earnings (loss), as it provides readers with an indication of cash
available for investment prior to debt service, capital expenditures and income taxes. Readers are cautioned that
EBITA and EBUI should not be construed as alternatives to net earnings (loss) determined in accordance with GAAP
as an indicator of the Company’s performance or to cash flows from operating, investing and financing activities as a
measure of liquidity and cash flows. In addition, the Company’s method of calculating EBITA and EBUI may differ
from the methods used by other companies and, accordingly, may not be comparable to measures used by other


Certain statements in this news release may contain “forward-looking statements” within the meaning of applicable
securities laws, including the “safe harbour provision” of the Securities Act (Ontario) with respect to Andrew Peller
Limited ( the “Company”) and its subsidiaries. Such statements include, but are not limited to, statements about the
growth of the business in light of the Company’s recent acquisitions; its launch of new premium wines; sales trends in
foreign markets; its supply of domestically grown grapes; and current economic conditions. These statements are
subject to certain risks, assumptions and uncertainties that could cause actual results to differ materially from those
included in the forward-looking statements.

The words “believe”, “plan”, “intend”, “estimate”, “expect” or “anticipate” and similar expressions, as well as
future or conditional verbs such as “will”, “should”, “would” and “could” often identify forward-looking
statements. We have based these forward-looking statements on our current views with respect to future events and
financial performance. With respect to forward-looking statements contained in this news release, the Company has
made assumptions and applied certain factors regarding, among other things: future grape, glass bottle and wine
prices; its ability to obtain grapes, imported wine, glass and its ability to obtain other raw materials; fluctuations in
the U.S./Canadian dollar exchange rates; its ability to market products successfully to its anticipated customers; the
trade balance within the domestic Canadian wine market; market trends; reliance on key personnel; protection of its
intellectual property rights; the economic environment; the regulatory requirements regarding producing, marketing,
advertising and labelling its products; the regulation of liquor distribution and retailing in Ontario; and the impact of
increasing competition.

These forward-looking statements are also subject to the risks and uncertainties discussed in this news release, in the
“Risk Factors” section and elsewhere in the Company’s MD&A and other risks detailed from time to time in the
publicly filed disclosure documents of Andrew Peller Limited which are available at www.sedar.com. Forward-
looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions which
could cause actual results to differ materially from those conclusions, forecasts or projections anticipated in these
forward-looking statements. Because of these risks, uncertainties and assumptions, you should not place undue
reliance on these forward-looking statements. The Company’s forward-looking statements are made only as of the
date of this news release, and except as required by applicable law, the Company undertakes no obligation to update
or revise these forward-looking statements to reflect new information, future events or circumstances or otherwise.

For more information, please contact:
Mr. Peter Patchet, CFO and EVP Human Resources
(905) 643-4131 Ext. 2210 - E-mail: peter.patchet@andrewpeller.com

Decem ber 31, 2006 statem ents have not been review ed by our auditors                       AUDITED
(in thousands of dollars, except per share amounts)                      Dec 31, 2006       Mar 31, 2006
                                                                              $                  $

Current Assets

Accounts receivable                                                             28,026             18,444
Inventories                                                                     80,693             70,528
Prepaid expenses                                                                 3,757              2,447
Income taxes recoverable                                                                -            911
                                                                               112,476             92,330
Property, plant and equipment                                                   85,352             85,597
Goodwill                                                                        36,171             35,862
Other assets                                                                     8,082              8,298
                                                                               242,081           222,087

Current Liabilities

Bank indebtedness                                                               52,102             37,295
Accounts payable and accrued liabilities                                        23,495             21,613
Dividends payable                                                                  917               778
Income taxes payable                                                             1,179                     -
Current portion of long - term debt                                              5,901              5,888
                                                                                83,594             65,574

Long-term debt                                                                  45,915             50,328
Employee future benefits                                                         3,945              4,224
Future income taxes                                                             12,586             12,381
                                                                               146,040           132,507

Shareholders' Equity

Capital Stock                                                                    7,375              7,375
Retained Earnings                                                               88,666             82,205
                                                                                96,041             89,580

                                                                               242,081           222,087

Consolidated Statements of Earnings and Retained Earnings
These financial statem ents have not been review ed by our auditors
(in thousands of dollars, except per share amounts)              For the Three Months Ended      For the Nine Months Ended
                                                                         December 31                     December 31
                                                                      2006         2005           2006             2005
                                                                        $            $              $               $

Sales                                                                  63,225          59,453      177,773             163,340
Cost of goods sold, excluding amortization                             36,885          34,654      103,559              95,461
Gr oss pr ofit                                                         26,340          24,799       74,214              67,879
Selling and administration                                             17,054          15,798       50,798              46,627

Ear nings befor e inter est and amor tization                           9,286           9,001       23,416              21,252
Interest                                                                1,335           1,227        3,993               3,275
Amortization of plant, equipment and intangibles                        1,866           1,868        5,667               5,274
Ear nings befor e unusual items                                         6,085           5,906       13,756              12,703
Unusual items                                                              15             355          213                 990
Ear nings befor e income taxes                                          6,070           5,551       13,543              11,713

Pr ovision for income taxes
Current                                                                 1,856           2,153        4,264               4,348
Future                                                                     72             (55)         205                  85
                                                                        1,928           2,098        4,469               4,433

Net ear nings for the per iod                                           4,142           3,453        9,074               7,280

Retained ear nings- Beginning of per iod                               85,442          82,197       82,205              79,924

Class A and Class B                                                       918             777        2,613               2,331
Retained ear nings- End of per iod                                     88,666          84,873       88,666              84,873

Net ear nings per shar e
Basic and Diluted
     Class A shares                                                      0.29            0.24            0.63             0.50
     Class B shares                                                      0.25            0.21            0.54             0.44

Consolidated Statements of Cash Flows
These financial statem ents have not been review ed by our auditors   For the Three Months Ended    For the Nine Months Ended
(in thousands of dollars, except per share amounts)                           December 31                  December 31
                                                                        2006            2005         2006              2005
                                                                          $               $            $                 $

Cash provided by (used in)

Operating activities
Net earnings for the period                                                4,142           3,453         9,074            7,280

Items not affecting cash:
    Amortization of plant, equipment and intangibles                       1,866           1,868         5,667            5,274
    Employee future benefits                                                 (93)            (79)         (279)            (150)
    Future income taxes                                                       72             (55)          205               85
    Amortization of deferred financing costs                                  36              29           107               78

                                                                           6,023           5,216        14,774           12,567
Changes in non-cash working capital items related to operations,
net of acquisitions:                                                      (9,312)           (930)      (17,085)            (768)

                                                                          (3,289)          4,286        (2,311)          11,799

Investing activities
Acquisition of Thirty Bench                                                    -               -           -             (4,510)
Acquisition of Cascadia, net of cash acquired                                  -            (306)         (309)         (33,666)
Acquisition of Red Rooster                                                     -          (5,549)          -             (5,549)
Proceeds from spirit business sale                                             -           5,782           -              5,782
Purchase of property and equipment                                        (2,293)         (1,121)       (5,237)          (3,521)
                                                                          (2,293)         (1,194)       (5,546)         (41,464)

Financing activities
Increase in deferred financing costs                                         (49)            (12)          (76)            (324)
Repayment of long-term debt                                               (1,472)         (6,356)       (4,400)         (20,407)
Increase in long-term debt                                                   -             6,000             -           56,000
Increase in (repayment of) bank indebtedness                               8,021          (1,947)       14,807           (3,273)
Dividends paid                                                              (918)           (777)       (2,474)          (2,331)
                                                                           5,582          (3,092)        7,857           29,665

Cash at beginning and end of period                                            -               -            -                 -


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