1) Manchester Ridge Vineyards are located along the first ridgeline due east of the community of Manchester in Mendocino County, CA, approximately three miles inland from the Pacific Ocean at an approximate 2000’ elevation.

2) The vineyard is comprised of approximately 164 acres of plantable vineyard ground and is currently under a 30-year lease (which includes a 5-year extension). The Lease was signed in 1999.

3) The lease contains the right of first refusal to purchase any sale of the leased property; and the lease can be interpreted to include the right of first refusal to purchase any sale, in whole or in part, of the Lessor’s 8,000 acre ranch (FYI: an additional 250 acres of plantable coastal vineyard ground has been identified on this ranch.) The lease also allows the building of an estate winery, contains subletting rights and a provision that the Lessor must compensate Lessee 50% of appraised value for any non-vineyard buildings or structures remaining after the lease expires.

4) Annual Rent: $5,000 per year base rent; plus a $500 per acre rent on planted ground; plus 10% of grape income over $1,500 per ton (this only pertains when grapes are sold, does not apply if wine is produced by Lessee.)

5) In 2006, the California Department of Forestry (CDF) granted a Timber Conversion Permit (which includes a Timber Harvest Plan) for all leased lands CDF has defined as “timberland” (approximately 77 vineyard acres).

6) Current Phase I grape plantings are 19 acres of Pinot Noir, 11 acres of Chardonnay. Phase I also has 16 acres of chestnut and 2 acres of persimmons orchard, which can be converted to vines as well as 2 additional acres of unplanted ground (50 deer-fenced acres total). This leaves an additional 114 acres in Phases II & III that are also plantable. These additional acres have already been partially cleared with grading and planting being the next step.

7) Revenue: 2005 third leaf yield was ¾ ton of Pinot Noir for the whole vineyard. In 2006, approximately 40 tons of Pinot and 6 tons of Chardonnay were harvested. 2006 was a combined fourth/third leaf and was sold to various highend producers. In 2007, 30 tons of Pinot and 17 of Chardonnay were harvested (a cold snap in the spring effected most coastal vineyards’ yields). In 2008, 51 tons of Pinot and 36 tons of Chardonnay were sold at $4,000/ton to brands selling Manchester Ridge vineyard designated product at approximately $55/bottle.

8) Conclusion: The quality of Manchester Ridge Vineyard’s product is at an ultra premium level. Along the California coast, land like this is very unique; the soils are excellent for the task, water is sufficient, and the weather conducive. This is a rare opportunity to participate at the highest levels of wine artistry and success.