He then took the opportunity to invite Jack Davies to Portugal so that he could learn about the potential of both our country and the DDR.

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1 Caves Transmontanas, Lda., Brief Introduction Caves Transmontanas history begins in the 1980s. A grape and wine producer of the Douro Denominated Region (D.D.R.), João Rui Carvalho Maia, of Vila Flor, married an American, and traveled to Napa Valley, California, in order to learn about new winemaking methods. There, during the harvest he took a job at Schramsberg Vineyards, in California. Only after harvesting and wine making, did he let them know he was himself a producer/bottler in the Douro Denominated Region (DDR). Refusing his salary, he explained that he was there to learn. He then took the opportunity to invite Jack Davies to Portugal so that he could learn about the potential of both our country and the DDR. So, in the late 1980 s, the late Jack Davies came to Portugal on vacation to visit his Portuguese friend. Soon enough he realized that the country had the potential for the production of basic grapes for sparkling wine. The following year he returns to Portugal with his staff to do micro-winemaking, in order to determine which of three distinctive wine producing regions (Minho, Bairrada and Douro) offered the best conditions for the production of basic wine for sparkling wine. This procedure became routine for more than three years and eventually they chose the DDR, more precisely the region of Cimo Corgo, with an average altitude above 550 meters. The Tradition of the Alto Douro Grape growing in the high slopes of the enchanting Douro Valley has always been an honorable and famous tradition for more than 1000 years. The lower slopes, protected from the winds and much warmer, are ideal for the growing of the famous Porto wine - one of the very finest wines in the world. In no other place is winemaking so much an individually assumed effort as is the case of the wines of the Alto Douro. In the upper part of the Valley, where the wind blows too cold to grow Porto wine grapes, vineyards for table wine have been harvested for centuries. Granitic and schistous soils are ideal to breed wines of intense aroma and personality. Over forty-eight grape varieties emerged over time. Here, after a 4-year evaluation program, involving more than twenty-five varieties, some white and red where selected to create a new and unique blend for a superior sparkling wine with the Champagne method. Now this ancient homeland of wine, will also be the homeland of VÉRTICE; a new standard in the world of quality sparkling wines. Evaluation Program Study of the vine varieties by CT s engineers for 6 years with the precious collaboration of the Classifiers of the Casa do Douro based on the following quality standards:

2 Location of the vines, Altitude, Longitude, Soil, Exposure, Classification of the different existing vine s in each lot of the vineyard, Phytosanitary of the vines This study simultaneously gave an incentive to the producers to plant by vine varieties and they also learned about new methods for the vintage: scheduling of the vintage by the engineers, prohibition of any phytosanitary treatment eight weeks prior to the start of harvesting, picking of the grapes by vine variety and into boxes of 20 Kilos, as well as the introduction of fines for those who did not comply with these requirements. Another interesting fact is that Caves Transmontanas was one of the innovating companies in the municipalities of Alijó, Vila Flor and Carrazêda de Anciães, not only as regards the above described requirements, but also regarding the way the producers get paid; payment being per Kilo and not grade/kilo and also the price for the raw material is indexed to the price paid for the grapes used for the production of the Port wine. The Tradition of the Champagne The Classic Champagne Method of producing superior sparkling wines, expanded in the French region of Champagne, in the 17 th Century. It was mastered by Dom Perignon, who was a Cellar Master in the Abbey of Hautvillers, at the end of that century. It is interesting to note in terms of historical comparison, the denomination of the DDR in 1756 shortly after the death of Dom Perignon in The tradition of quality champagne is nothing but selecting various grape varieties which are lightly pressed, using specific fermentation techniques, artistic blending of different wines in order to obtain an individual and balanced blend, bottle by bottle, until that sparkle is obtained in each and every bottle. All this translates into very personal care, awareness of detail and critical expression as opposed to mass and massive production. It is the result of the highest personal achievement; this is the goal of VÉRTICE. Cooperation and Innovation VÉRTICE not only was born in one of the most ancient wine regions of the world, created according to the classic tradition of natural sparkling wines, but it also arouse from an unusual and creative collaboration of winegrowers. The alliance of Schramsberg Vineyards from Napa Valley, California with Caves Riba Tua e Pinhão from the Alto Douro, began with various experiments in 1988.The partners later created the company Caves Transmontanas Lda., in order to embody this joint-venture. In the past quarter of a century Schramsberg Vineyards has been the leader of the renaissance of traditional production of natural sparkling wines with the Champegnoise method in California. But not all started there. Schramsberg s roots go far back to 1862, when this mountain vineyard was established in Northern California by a German emigrant called Jacob Schram. Schram was a pioneer and his position amongst those who had arrived before him quickly changed, so that the European market eventually came to recognize California as a producer. 2

3 These events definitively set Schramsberg s efforts until our days and made it the first producer of wines in California to be involved in the production of wines inside the European Union. Caves Riba Tua e Pinhão, is one of the biggest cooperatives of winegrowers in Northern Portugal, founded in 1959 and with more than 3,500 members. Its activity includes planting more than hectares of vine and the production of more than twenty million litres of wine. The diversity of its vines is enormous due to an incomparable range of different vine varieties and microclimates. This diversity allied with the incredible experience at winegrowing are the soul of VÉRTICE. In a real team-work the Schramsberg - Caves Riba Tua e Pinhão alliance gave birth to the development of a philosophy and art, both at the vineyard and in t he cellar. This rare association of European tradition with New World experience resulted in a sense of novelty, VÉRTICE. Research Since CT launched its first sparkling wine on the market in 1990, it never ceased studying the different vine varieties from which Vértice is made, and also began studying new grape varieties which at are at present already part of Vértice s blend. VINE VARIETIES USED SINCE THE BEGINNING OF THE PROJECT UNTIL 1999: Gouveio: 5 to 10% Touriga Franca: 55 to 65% Códega: 15 to 20 % Malvasia Fina: 5 to 10% VINE VARIETIES USED SINCE 1999: Gouveio: 15 to 25% Acidity, Tropical Fruits (maracock), Citric, Complexity, Body Touriga Franca: 15 to 30% Strawberry, Raspberry, Cherry, Jelly Códega: 3% Delicacy, Tropical Fruits Malvasia Fina: 25 to 35% Elegance, Bloomy, Delicacy, Tropical Fruits Rabigato + Viosinho: 7 to 15% Acidity, Freshness 3

4 Production Technologies: In order to increase its body and complexity, some changes in the production of the basic wines for sparkling wine were introduced: Change of vine varieties Implementation of selection of the mass. Since 1999, later bottling of the basic wine for sparkling wine, which allows more time in contact with the lees. Temperature of the grapes prior to be pressed: Since 1999 due to our refrigeration capacity, all grapes are cooled to a temperature of 8.º to 10.ºC before they are pressed. Programs for pressing according to specifications of the vine variety. Time of decanting Decision on whether certain winemaking products can or cannot be used according to the specification of each vine variety. Usage of inert gases with special incidence of Argon. Notes of Interest Caves Transmontanas does not produce its own grapes. In order to continuously guarantee the quality of the raw material, contracts with Growers are signed and have been in place since the beginning of the venture. Average annual production is approximately bottles of 750 ml. The minimum aging process is 18 months, with exception of our Rosé which is aged for 9 months. Picking occurs from the end of August/beginning of September until the end of September. In 2001, during the maturity test grapes were picked in order to decide on the date for the beginning of the sparkling wine vintage. The sparkling wine Vértice is a Blanc de Noirs, as it is a white wine mainly made out of red grapes. In 1999, we launched our first Red Wine DOC on the market also with the name Vértice Celso Pereira has been responsible for making Vértice since Celso is 50 and holds an Engineering degree in Agronomy. He took various post graduate courses in Portugal and Bordeaux and was an intern both at Schramsberg Vineyards, Calistoga, and at Pierro Vineyards in Margaret River, Australia. Prior to 1989 he was a winemaker with Caves Riba Tua e Pinhão which were involved with the Schramsberg led experiments from June 1984 onwards. Before 4

5 his winemaking career, Celso trained at the Casa do Douro laboratory and worked at the conditioning and vine planting service at the Centro de Estudos Vitivinícolas do Douro from 20 June 1983 to 31 December He published two pieces: A Comparative Study of Phenolic Uncolored Composites in Elementary White Wines (Códega and Gouveio) with vinification in stainless steel vats and oak barrels The Influence of Grape Maturation Stages and Temperature during Fermentation in the Aroma of Elementary White Wines for the vines Códega, Gouveio and Malvasia Fina. Vértice wines are unique: no other producer in the Douro achieves the levels of quality and value as Vértice. Vértice methode classique sparkling wines are consistently rated among Portugal s best in every publication. Vértice Red wine received a Bronze Medal at the International Wine Challenge, London (2002) and 92 points in the Wine Spectator, Jan. 31-Feb 28, 2006 issue, page 228. Our small production of White wine sold out in 2003 and may be found at Portugal s best restaurants. In order to achieve complexity, a variety of steps are taken during the fermentation process: 1. Bio-dynamic agriculture. 2. The grapes are picked by hand and put in 19 kg boxes as opposed to traditional 50kg cylindrical baskets. 3. To avoid both oxidation and extraction of phenolic compounds, the grapes are subject to cooling to 8.º C as they arrive in the winery. 4. Grapes used for both base wines for sparkling and still white wine are not de-stemmed. Fermentation here occurs at º C for three week sand enzymes are not used in some varieties during settings. 5. Low pressure cuts for less bitter juice are used for both base wines for sparkling and still white wine. 6. Racking with NTU levels of 250 and with argon inert gas for both base wines for sparkling and still white wine. 7. Low levels of sulphur dioxide. With the Gouveio variety, no SO2 at all is used. 8. After alcoholic fermentation, both base wines for sparkling and still white wine ages on the lees. 9. In the case of sparkling wine second fermentation, it is done at a controlled 10. temperature of º C Vértice is imported to the USA by Wine In-motion. In Portugal we are distributed by Vinalda. We are present in Belgium, Switzerland, France, Angola, Brazil and Holland. 5

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