Dromana Estate Limited
12 January 2005



For Release 12 January 2005


Dromana Estate Limited

Placing and Admission to trading on AIM

Dromana Estate Limited ('Dromana' or the 'Company'), producer and marketer of
premium and ultra premium Australian wine, announces that its shares were
admitted to trading on AIM today. Dromana is also listed on the Australian Stock
Exchange ('ASX').

The Company has raised gross funds of 600,000 by way of a placing of 5,454,545
New Ordinary shares of an average of 11p per share. At the placing price,
Dromana will have a market capitalisation of 3.0 million. The number of
Ordinary Shares in issue immediately following Admission is 26,870,524 Ordinary
Shares. The percentage of Enlarged Share Capital being placed pursuant to the
Placing is 20%.

Grant Thornton Corporate Finance is Nominated Adviser and HB-corporate Broker to
the Company.

Business Summary

Based in Victoria, Dromana is a producer of premium and ultra premium Australian
wine and markets under seven brands. Dromana acquired the assets and business of
Dromana Estate Vineyards in April 2000, which was established in 1982. The
Company has been acquisitive, purchasing Mornington Vineyards Estate in June
2000, a 49% interest in the Yarra Valley Hills Joint Venture in November 2000
and an 80% interest in David Traeger Wines in November 2002. From the outset,
Dromana has been a pioneer in establishing the Mornington Peninsula as one of
Australia's premier cool climate wine regions.

In the UK, Dromana currently sells its wines through distributors to restaurants
and hotels. The Company's main goal in listing on AIM is to raise its profile in
the UK and expand its market presence. Dromana is offering shareholders a 20%
discount on wine purchased direct from the Company. It also plans to introduce
to the UK a Loyalty Programme, currently operating in Australia, for restaurant
and bar owners in the form of a four year share option.

Business Overview

Dromana exports two of its seven brands to the UK restaurant and hotel trade.
The wine retails at under 10.00 a bottle. Later this year, the Company plans to
introduce a third brand with the launch of the David Traeger Verdelho, a 'super
premium wine'. In September 2003, prestigious UK Wine Magazine 'Decanter'
awarded the David Traeger Wines 2001 Verdelho a five star rating. Dromana will
progressively seek to expand the portfolio of wine available in the UK to all
seven of its brands.

Shareholders purchasing direct from Dromana will have access to all its seven
brands which embraces, white, red and sparkling wine. Purchases can be made via
email and fax.

The UK is the largest importer of wine by value in the world and six Australian
wines are in the top 10.

Dromana's key markets include: Ireland, Canada, Russia, Singapore as well as the
UK and Australia. It has recently launched its wine in Korea and Japan. Once
firmly established in the UK, Dromana intend to target the rest of Europe.

Dromana has won many gold, silver and bronze medals, 4 star ratings and other
accolades, both in competition with other Australian wines and those produced
worldwide. Most recently, the 2002 Dromana Estate Pinot Noir was awarded a gold
medal at the 2004 Royal Melbourne Wine Show and the 2003 Mornington Estate Pinot
Noir was awarded a blue-gold award at the 2005 Sydney International Wine
Competition

Current Trading and Prospects

Dromana is in a recovery phase having spent two years restructuring the Company.
The strong Australian dollar, combined with poorly performing Australian
distributors, has impacted on Dromana's profitability.

Reasons for the Placing and use of Funds

The proceeds will be used to increase working capital, repay debt and to assist
in further increasing sales both domestically and internationally, especially in
the United Kingdom, one of the Company's largest export markets.

Placing Statistics

Placing Price 0.11p
(per share on average)

Number of Existing Ordinary Shares 21,415,979

Number of Placing Shares 5,454,545

Number of Ordinary Shares in issue 26,870,524
immediately following Admission

Number of Ordinary Shares under option 7,050,667
immediately following Admission

Fully diluted share capital following the Placing 26,870,524

Percentage of Enlarged Share Capital 20%
being placed pursuant to the Placing

Estimated proceeds of the Placing 480,000
receivable by the Company after expenses


Market capitalisation of the Company 2,955,758
at the Placing Price following the placing




Enquiries:

Richard Green,
Chairman Dromana Estate Ltd
Melbourne, Australia 00 61 3 9509 1262
(not later than 11.00 am UK time)

Luke Cairns
HB-corporate 0207 538 1166

Jacqui Graves
Binns & Co PR Ltd 0207 153 1486



Appendices

Board of Directors

Richard Green (Executive Chairman)

Bachelor of Commerce, CPA, AISA
Director since October 1999, Chairman since March 2002
Mr Green has had a long involvement with the Australian wine industry both as a
director and adviser to a number of wine producers, including St. Hubert's
Wines, Tisdall Wines and Oakridge Vineyards Limited.
Mr. Green is Chairman of Queensland Trustees & Investments Limited, a director
of Institute of Drug Technology Australia Limited and Authorised Investment Fund
Limited, all of which are ASX listed companies. Mr. Green is a former member of
the Australian Stock Exchange.

David Craig (Executive Director)

Bachelor of Economics
Director since October 1999
Mr. Craig has over 30 years experience in the securities industry and was the
Melbourne Manager of Industrial Equity Limited for 12 years prior to founding
the ASX listed Equity and property Investment Corporation Limited.
Mr. Craig is a director of Authorised Investment Fund Limited an ASX listed
company. Mr Craig is a former member of the Australian Stock Exchange.

David Traeger (Executive Director)

Bachelor of Applied Science - Wine Science
Director since November 2002
Mr. Traeger has over 30 years experience in the Wine Industry. Mr. Traeger has
been a consultant winemaker and winemaker for Mitchelton Wines and remains the
winemaker for David Traeger wines after its acquisition by Dromana Estate
Limited.
Mr. Traeger is a board member of the Victorian Wine Industry Association.

Geoff Bell (Non Executive Director)

Bachelor of Commerce (Hons.), CA, FCPA, ACIS, FTIA
Director and Chairman of Audit Committee since July 2004.
Mr. Bell has been a chartered accountant for 30 years and was a partner with
PricewaterhouseCoopers for 20 years. Mr. Bell held several senior positions with
PricewaterhouseCoopers including National Tax Partner, the Australian firm's
representative on the International Tax services Committee and Chairman of the
Asiatax committee.

1.8 Senior Management

Chris Ritchie (Chief Financial Officer & Company Secretary)

Bachelor of Business, Graduate Diploma in International Business, CPA, FCIS
Mr Ritchie has 20 years experience in financial management and corporate
governance in the hospitality, international trade and construction industries.
Mr Ritchie was previously Vice President and Chief Financial Officer for Flag
Choice Hotels Limited, Finance Manager for McConnell Dowell Corporation Limited
and Group Accountant for the commodity trading group of Elders Resources NZFP
Limited.

Best line .....'Wines tasted May 2000'....they must be pretty yuck by now!

Click here for Dromana website.

Hils
For some reason I fully expected that link to take me to some joke website.You must be mellowing.

Just trying to help you with your ramp, Jeffie ...... after all, this old dog needs all the help it can get.

:o)

Just replace Majestic Wine with Dromana Estate.