Wine & Cuisine, Inc

Operations At-A-Glance

Record Demand:

The PCHB stated that studies predicting the impact on quantity and quality do not provide sufficient certainty to support joint venture’s proposed plans. The PCHB also held that the mitigation plan, which was approved by the Department of Ecology, was not adequate. A hearing date has been set for March 2002. However, pending the time availability of the court, a hearing date has been conditionally set for October 2001.

Continued Drive Results:

Our company paid the next to last interest payment on its $15 million convertible debentures on March 22, 2001 (due on February 27), within the 30-day grace period to remain in compliance with the terms of the debenture. Our company does not currently have the financial resources to pay the $15 million principal and final interest payment due on August 27, 2001.

International Approach:

On January 18, 2001, our company exchanged 100% of the shares in its wholly owned subsidiary for 200,000 shares of common stock. Our company’s holdings consisted of a royalty and certain rights. Production ceased in the fourth quarter of 2000. Our company will record a gain on sale from the transaction of approximately $200,000 in the first quarter of 2001.


		Record Demand: The PCHB stated that studies predicting the impact on quantity and quality do not provide sufficient certainty to support joint venture’s proposed plans. The PCHB also held that the mitigation plan, which was approved by the Department of Ecology, was not adequate. A hearing date has been set for March 2002. However, pending the time availability of the court, a hearing date has been conditionally set for October 2001.

	Continued Drive Results: Our company paid the next to last interest payment on its $15 million convertible debentures on March 22, 2001 (due on February 27), within the 30-day grace period to remain in compliance with the terms of the debenture. Our company does not currently have the financial resources to pay the $15 million principal and final interest payment due on August 27, 2001.

		International Approach: On January 18, 2001, our company exchanged 100% of the shares in its wholly owned subsidiary for 200,000 shares of common stock. Our company’s holdings consisted of a royalty and certain rights. Production ceased in the fourth quarter of 2000. Our company will record a gain on sale from the transaction of approximately $200,000 in the first quarter of 2001.