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October 8, 2013

The SAQ has never failed to meet its payment obligations toward Julia Wine, and the cheque issued on Monday is in no way related to Mr. Mounir’s recent media appearances. The SAQ is paying for the products concerned on schedule. Two payments were slated for this week (one on Monday) and a third is planned for next week. By October 19, the SAQ will have paid for all goods received since last summer, in full compliance with the agreement.

In fact, the problem lies elsewhere. Among the lots of Julia Wine products stored at the SAQ, several thousand cases have been in our warehouses for nearly two years. Faced with this unusual situation, the SAQ proposed to Julia Wine that the companies work together to clear the inventory and avoid possible losses, since a wine’s quality may be affected by the passage of time. Were the wines to deteriorate, Julia Wine would be required to take back, at its expense, any wines so affected, as specified in the agreement signed with all our suppliers. As it has been several months since we have received an order from the main chain in which these products are sold and as Julia Wine has declined to provide specific information regarding a sales plan, we are concerned about this situation.

Effective immediately, we will send a monthly notice regarding the state of evolution of the Julia Wine products. These actions are being taken in the interests of consumers and of sound management.