Marlborough Wine Estates Group Limited – Market Update

MARLBOROUGH WINE ESTATES GROUP LIMITED (NZX: MWE) Date: 21 December 2020 MARLBOROUGH WINE ESTATES GROUP LIMITED is pleased to advise that it has reached a settlement with its insurance company regarding inventory that was destroyed under the supervision of MPI in FY20. As previously advised to the market, MWE's former contracted wine processor failed to comply with the requirements of the Wine Act. MWE's inventory, which was destroyed as a result, was written off in FY17 ($1.2 million). The processor has now been liquidated. The settlement is confidential but has enabled MWE to recover a proportion of the value that was written off. The amount received will be treated as income for MWE for FY21 but is not considered to be material in the context of MWE's anticipated overall revenue for FY21. MWE is pleased that this protracted matter is now finally concluded. ENDS Authority for this announcement Name of senior manager or director authorised to make this announcement: Catherine Ma Contact phone number: 09 215 6650 Contact email address: catherine.ma@otuwines.com Date of release: 21 December 2020 End CA:00365391 For:MWE Type:GENERAL Time:2020-12-21 10:04:21