Press & Media - Press Release

Mortgage repayment product utilising the investment potential of Fine Wine

Mortgage payments are a considerable cost to a household, and homeowners are searching for ways to save money. Running an investment plan alongside an interest only mortgage can considerably reduce costs in the long term, and Premier Cru Fine Wine Investments believes that Fine Wine acts as an ideal investment vehicle for mortgage repayment.

To meet the growing needs of homeowners, Premier Cru Fine Wine Investment has today launched a Fine Wine Investment Mortgage Repayment Product, branded 'Home Cellars', which uses fine wine as the repayment vehicle, alongside most interest only mortgages.

Key points include:

• Potential to significantly reduce costs compared to Capital Repayment schemes (see below);
• Investment is tax free and not assigned to the mortgage lender;
• Growth in Fine Wine generally exceeds standard investments (see graph)
• Long history of stability in the Fine Wine investment market;
• Investment is flexible allowing the holder to adjust monthly payments to suit financial needs; and
• Life assurance is a separate term insurance, meaning holders do not lose cover if the wine investment is temporarily stopped.

Comparison of Capital Repayment Mortgage vs Interest Only with a Fine Wine Investment Vehicle

This comparison is based on a 35 year old non smoker with a £250,000 mortgage at 5.45% fixed for the term of the loan. Wine fund growth is at 10% p.a with no growth for first 3 years, including 1.5% p.a management fee. Source: Fiscal Concepts Mortgage Brokerage.

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Featured on CHANNEL4.COM 22 July 2006

Homeowners can now use fine wine to repay their mortgage following the launch of a new investment product.Premier Cru Fine Wine Investment has launched a new product which invests in fine wines, dubbed Home Cellars, which people can use as an investment vehiclealongside an interest only mortgage.The group said growth in fine wine generally exceeded other investments, addingthat there was a long history of stability in the fine wine market.

It said £10,000 invested in fine wine in January 1990 would have been worth £89,760 in January this year, while the same sum invested in the FTSE All Share Index would be worth only £39,145.

The investment product is managed by experts, so people do not need to have a knowledge of fine wine themselves, and the bottles are all held under bond in UK warehouses, so homeowners don't have to worry about storing them correctly or being tempted to drink their investment.

Investing in wine is tax free, and people can adjust their monthly payments to suit their finances. There is a one-off charge of £8.50 per case of wine bought, plus an annual management fee of 1.5%.Stacey-Lea Golding, investments director at Premier Cru Fine Wine Investment, said: "Mortgage repayments can prove to be a struggle and we are keen to provide an alternative solution to traditional, rigid repayment schemes. We believe that this willsave mortgage holders money in the long-term, and provides a valuable new addition to the mortgage market."

But Justin Modray, of Best Invest, said: "This is high risk. The biggest issue is that it is not authorised by the Financial Services Authority so there is very little protection if things go wrong. The other issue is that if you are paying off your mortgage you want to move towards safer investments as you get closer to paying it off." He said this was relatively easy to do with an ISA but was likely to be harder with wine.

He added that the figures quoted were for investing in fine wine generally and did not reflect investment returns generated by the group, so people who were interested in taking out the product would need to check Premier Cru Fine Wine Investment's track record.

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According to recent Government statistics, individuals are finding it increasingly difficult to save for their future. With endowments becoming harder to sell, pension laws changing and tax relief on ISA's being abolished, people want alternative ways to invest their hard-earned cash.

In light of the growing level of scepticism pertaining to other forms of traditional investment, Independent Financial Advisers ("IFAs") have been seeking new opportunities to extend or restructure their clients' investment portfolios to include a well-balanced mixture of traditional, alternative and leisure investments. One alternative investment that is increasingly becoming favourable amongst wine experts, those interested in wine or those just looking for a stable and innovative investment, is Fine Wine.

Premier Cru Fine Wine Investments Ltd, ('Premier Cru') Europe's leading Fine Wine investment house, to meet with market demand, has launched its own IFA Consultancy division. Premier Cru seeks to exploit the Fine Wine investment market as an opportunity for high growth investment returns and is dedicated to helping IFAs achieve solid returns for their clients.

As with many mainstream investments, such as unit trusts, one should gain advice before investing. Fine Wine is no exception. To date, most companies that offer wine investments are, in fact, the wine merchants themselves. Although there are many trusted merchants in the Market, it is widely understood that the best returns and portfolio management are provided by wine investment houses that do not hold actual stock, offer a broad range of investment plans and offer a hands-on portfolio management service. It is these investment houses that are able to provide investors with truly independent advice and the flexibility of choice.

Premier Cru's IFA Consultancy division offers IFAs full training as well as the ability to service accounts - with a dedicated sales manager per account. The training also allows IFAs to qualify for valuable CPD (Continuing Professional Development) points. Premier Cru offers IFAs quick, generous commissions with no dated commission runs. All commission is paid within 15 days of receiving the client's cheque and there is no claw-back on commissions.

The growing lack of confidence surrounding traditional investments makes it paramount that IFAs know and understand what alternative investments are available. IFAs need to expand their knowledge of the advantages of alternative investments to ensure that they can offer a variety of options to clients who are disconcerted by the risks of traditional investment. Investors are seeking ways to create a m ore balanced portfolio, and it is becoming imperative that IFAs are able to suggest new alternatives for their clients.

Why Fine Wine?

Fine Wine has many advantages over other forms of investments, such as unit trusts, life assurance, investment bonds and equities. Fine Wine benefits from being stable, tax-free, easily realisable, consumable, low risk and portable. Above all else, due to decreasing availability, there is increasing demand. Fine Wine has consistently outperformed all other forms of recognised investment. It has remained the steadiest form of investment, as it is generally unaffected by recession, interest rate changes and stock market fluctuations.

In comparison to other alternative investments, Fine Wine has clear advantages over investments such as art or property. Fine Wine is easily stored and generally increases in quality the longer it is left. Investing in either art or property requires expensive maintenance and care, while Fine Wine needs no such attention.

Fine Wine investment is becoming an increasingly attractive option to innovative investors who wish to gain more out of their investments.

Stacey Golding , Investments Director of Premier Cru, commented on today's news, 'Premier Cru is looking forward to working with many IFAs, in order to give people the opportunity to explore alternative investments.' As people's perception of this form of investment grows, so will its popularity and demand. People do not like to discuss their pension premiums amongst friends around the dinner table, but they do like to talk about the value of their wine."

Premier Cru Fine Wine Investments Ltd was formed with the specific intention of offering structured and managed investments to people with little or no knowledge of wine. The Company is unique, in that it provides tailor-made portfolios with no lock-in periods, thus enabling investors to add or subtract at will to pay off a wedding, children's school fees, a m ortgage or even create an income to supplement your pension etc. It does not charge upfront or exit fees, nor early redemption penalties, and investors' profits are free from capital gains and income tax. Unlike ISA's there are no upper limits, and Premier Cru's minimum investment is the lowest in the market, at £1,500 and/or £100 per month.

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Investing in Fine Wine as a Liquid Asset

People have been investing in Fine Wines for hundreds of years. However until now, like Fine Art and Antiques, you would either have to be an expert on the subject or be prepared to make expensive mistakes when entering the market purely for monetary gain.

Premier Cru was formed with the specific intention of offering structured investments to ordinary people with little or no knowledge of Fine Wines.

The idea of creating a pure investment company of this kind came in 1992 when one of the founder members of Premier Cru was introduced to a National Insurance Contributions discount scheme utilising Fine Wine. Due to the stability of the wine markets, it was possible to offer prospective clients a guarantee that they would receive 100% of quoted values. Other companies had been using Gold and Diamonds. However, fluctuations in those marketsoften caused clients to sell at a loss making the whole scheme pointless. Although we were not interested in NIC discount scheme, a Tax Free Stable Market seemed the perfect basis for an investment.

Research started mid 1992 and in mid 1994 we launched our first "Investment Portfolio" (a recent valuation is at the back of this booklet). Our development team which has over 160 years combined experience in the Financial Services and Fine Wine industries have designed our plans by taking the best features and benefits from PEPs/ISAs, Investment bonds & TESSAs and removing the common drawbacks of those schemes. In doing so, we have created what is now generally considered to be the most tax efficient and fully flexible range of investment plans available in the open market today. We do not charge upfront or exit fees, early redemption penalties (we recommend a minimum 3 year term) or dealing charges. Your profits are Free from Capital Gains and Income Tax.

For you the investor, a Fine Wine should have the following attributes; be from a limited production, be produced under strict regulations, be from a recognised system of classification, and have a complexity of taste and longevity that improves its quality with age.

When investing in Fine Wines the quality, purchase price, quantity produced, ChÂteau and vintage are of primary importance, and once bottled the atmospheric pressure, temperature and overall condition of its storage is as equally important.

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Over the next few months thousands of workers will endure the endless, backbreaking task of picking, sorting, de-leafing, and de-stemming bunches of grapes. Their hard work will reap someone financial gain, however it is unlikely to be them - unless they invest in what they pick.

Due to the unusually hot climate in the last 12 months, and the small production of the 2003 vintage, th is years harvest is expected to produce a bumper crop . Following such a fantastic vintage as the 2003, and having a large production, should be reflected in the opening prices, making this an opportunity to invest in the world's greatest wines at a reasonable cost. The 2002's were in-expensive and have returned higher than average profits. There has therefore been no better time for investors to look to spread the risk of their investment portfolios, and turn to fine wine as a credible alternative investment opportunity.

Experts have been exploiting the wine market for hundreds of years. With a proven track record of providing a consistent, low risk, high yielding, tax free, average return of more than 19% per annum for the last 25 years, investing in Fine Wines has proven to be both pleasurable and profitable.

The Bordeaux wines are the most stable of all the wine investment markets, consistently outperforming all other forms of recognised investment. It has remained the steadiest form of investment, generally unaffected by recession, interest rate changes and stock market fluctuations. Fine Wine offers many advantages over other investments - such as unit trusts, life assurance, investment bonds and equities - as it benefits from being stable, easily realisable, consumable, low risk and portable.

Fine Wines are free of both Capital Gains and Income Taxes. Classed as a wasting asset, wine is not charged for Capital Gains; likewise wine is not an income bearing investment and therefore free from Income Tax. They are just drinking wines and like the Chardonnay or Merlot you would buy from your local wine merchant, they just happen to be the best drinking wines on Earth.

Most fine wine drinkers do not pay for the majority of their Claret. They turn their cellars for profit, which they take in wine. For example those who had invested £820 in May 2003 on a case of Chateau Latour 2002 would see a 50% rise in their investments which currently stands at circa £1,230.

The best investment advisers:

• Are well-established companies with a known track record
• Set up each client portfolio as a Limited company
• Have complementary background experience within Financial Services
• Offer a broad range of investment plans
• Do not actually hold stock themselves
• Have a demonstrable track record of good, solid returns
• Provide tailor-made portfolios with no lock-in periods
• Do not charge upfront or exit fees, nor early redemption penalties
• Are proactive and run a hands-on management operation.

One of the best ways to invest in Bordeaux wine is through Premier Cru Fine Wine Investments Ltd, Europe's leading Fine Wine investment house. Premier Cru Fine Wine Investments Ltd removes all the common drawbacks from other investment schemes by providing tailor made portfolios with no lock in periods, no up front or exit fees, nor early redemption penalties. Premier Cru Fine Wine Investments Ltd chooses only the best wines of the vintage, and arranges all shipping from the chateaux.

On 29 through to the 31 st October, Premier Cru Fine Wine Investments Ltd. will be exhibiting at The Money Show, in Dublin, Ireland - where the Company will be providing visitors with an insight into this exciting area of alternative investment.

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Fine Wine has consistently outperformed all other forms of recognised investment. It has remained the steadiest form of investment, generally unaffected by recession, interest rate changes and stock market fluctuations. Fine Wine offers many advantages over other investments - such as unit trusts, life assurance, investment bonds and equities - as it benefits from being stable, tax free, easily reaslisable, consumable, low risk and portable. Above all else, due to decreasing availability, there is increasing rarity.

Given the growing level of scepticism over other forms of traditional investment, individuals have been seeking new opportunities and advice on how to extend or restructure their investment portfolios to include a well-balanced mixture of traditional, alternative and leisure investments.

Premier Cru Ltd ("Premier Cru" or the "Company"), Europe's leading Fine Wine investment house, seeks to exploit the Fine Wine investment market as an opportunity for high growth investment returns. Its specific intention is to offer structured investments to ordinary people with little or no knowledge of Fine Wines.

The Company is unique, in that it provides tailor made portfolios with no lock in periods - enabling investors to add or subtract at will (to pay off a wedding, children's school fees, a mortgage or even create an income to supplement your pension etc). It does not charge up front or exit fees, nor early redemption penalties, and investors' profits are free from capital gains and income tax. Unlike ISA's there are no upper limits, and Premier Cru's minimum investment is the lowest in the market, at £1500 and/or £100 per month.

Removing all the common drawbacks from other investment schemes, Premier Cru offers what is generally considered to be the most tax efficient and fully flexible range of investment plans on the market today.

Some of the incredible returns from investing with Premier Cru in May 2003 include:

Fine Wine purchased | (per case of wine basis) Cost | in May 2003 Growth | to date Current value

Chateau Latour 2002 | £820 | 50% growth | £1,230 (current value to date)

Chateau Mouton Rothschild 2002 | £763 | 17.82% growth | £899 (current value to date)

Chateau Margaux 2002 | £775 | 14.84% growth | £890 (current value to date)

Stacey-Lea Golding, Director at Premier Cru, stated: "A core benefit to our hands-on investment strategy is the flexibility and tax effectiveness on offer to clients. By no means are we advising individuals to withdraw from their current investments, but to balance their portfolios through broadening their range, enabling risk to be more evenly spread.

Until recently, investing in the Fine Wine market has been considered a wine experts game only. Were here to fill the void by offering specialist advice to individuals with little or no knowledge of wine, enabling everyone to get involved in this thriving and fun market." About Premier Cru:

Premier Cru was founded in 1992 and is a family run company. They are experts in wine investments and are able to offer you a tax-free investment service in fine wines to purchase and the storage management and the eventual sale of your high growth Bordeaux Fine Wine Investment Portfolio.

Premier Cru has been supplying private investment cellars to the average investor, since 1994. The Company is unique because it does not hold stock. The Company decides which wines are going to be the best to buy for a client's particular needs and then sources those wines at the cheapest prices from the best wine merchants in the industry. Clients' cellars are proactively managed by turning their wine for a profit and re-investing in younger vintages.

Premier Cru selects, stores, manages and sells the wines on their clients' behalf.

Range of Premier Cru investment plans include:

• Capital Investment
• Annual Investment
• Income
• School fee
• Wedding
• Pension

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