OBMVL: Oyster Bay Marlborough Vineyards Limited

26 May, 2005 Harvest Report

Oyster Bay Marlborough Vineyards announces that its harvest for the 2005 season totaled 3,303 tonnes of sauvignon blanc, chardonnay pinot noir and riesling grapes. While this represents an increase of 5% on the 3,155 tonnes harvested last year, it was 23 per cent down on the expected 4,300 tonnes announced at the company's Annual Meeting in November last year against the 10-15% foreshadowed in the company's half year result announced in February.

The company's reduced yield was consistent with the experience of other vineyards in the Marlborough region where unseasonably cold weather conditions in December that affected fruit set.

Price negotiations between the company and Delegat's Wine Estate were concluded today, resulting in total grape revenue of $7,151,035, an increase of $606,259 on last year.

As the grape purchase contract with Delegat's is a related party transaction, under the NZAX listing rules, a waiver for the contract is being applied for.

The Chairman Bill Falconer said that whilst yields were affected, the company welcomed the increased harvest volumes and the very good fruit quality. The company expected a surplus of around $900,000 for the year ending 30 June 2005 and to be a position to consider a distribution to shareholders following the finalisation of the year end accounts.