REGIONAL BEVERAGE DISTRIBUTORS ANNOUNCE INTENT TO MERGE
6/2/2008

June 2, 2008 (Portland, Oregon) – Columbia Distributing Company, Mt. Hood Beverage Company and Gold River Distributing announced today that they plan to merge their beer and non-alcoholic beverage distribution businesses in Oregon and Washington, following approval from their respective suppliers. The merger will not include their wine distribution businesses, as they will remain separately owned. John Klein will remain as president of Young's Columbia wine company.

The new organization, which will be named CoHo Distributing, will have annual sales of more than 35 million cases of beer and non-alcoholic beverages and is planning to operate out of consolidated facilities located in Seattle , Everett , Portland , Eugene , Medford and Bend . In addition, the Mt. Hood Beverage operations in Yakima and Kennewick Washington will be included in the merged company effective January, 2009.

The Company's headquarters will be based in Portland , Oregon . CoHo Distributing will remain principally owned by the combined existing ownership of the Agnew and Lytle families, the families of Ed Maletis and Ron Fowler, and the principals of Endeavour Capital.

The parties have agreed to an equal and shared governance and control of the newly combined company. Steve Lytle, current president and CEO of Mt. Hood Beverage, will serve as chairman of the board. Gregg Christiansen, current president and CEO of Columbia Distributing, will serve as president and CEO of CoHo Distributing, reporting to the newly formed CoHo board of directors.

CoHo's board of directors will be comprised of the owners of each of the respective companies, all of whom share significant beer and non-alcoholic beverage distribution experience. The six-member board will include: Steve Lytle, Ed Maletis, Dan Agnew, John von Schlegell, Dick Lytle and Ron Fowler.

The proposed merger will require the approval of each of the companies' suppliers, who have been notified of the planned merger. This process is expected to take several months with the goal of closing the transaction by early fall.

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“Industry dynamics are changing at a really rapid pace. The Miller and Coors merger announcement last fall presented a chance for us to look at the opportunities a potential merger would create for all of our stakeholders,” said Steve Lytle, of Mt. Hood Beverage and co-owner of Gold River Distributing. “After talking with Columbia , we realized that all three companies share common vision and values. It was obvious that a merger would add value for our employees, suppliers, customers and the communities we service in a sustainable and long term way.”

“This merger increases the ability for both companies to build a team that will effectively manage the significant increases in the current cost of going to market,” said Gregg Christiansen, of Columbia Distributing. “Fuel costs have risen sharply, increasing our need to analyze the total number of vehicles we put on our streets as well as the number of miles being driven. Creating a more efficient, combined business in the Pacific Northwest will help enable us to successfully tackle these challenges while still servicing our valued customers and consumers in a timely and more environmentally sustainable manner.”

About Columbia Distributing

Columbia Distributing & Young's Columbia is committed to being the beverage distributors of choice in the Northwest, sustaining profitable growth and improving the quality of performance in the workplace. Founded in 1935, Columbia Distributing has distributed some of the best-known brands in the beverage business. Columbia Distributing is headquartered in Portland , Oregon with operations in Western Oregon, the greater Seattle area and has been u nder the ownership of Ed Maletis since 1993. For more information, go to www.columbia-dist.com or call (503) 289-9600.

About Gold River Distributing

Founded in 1977, Gold River Distributing has become the largest full-service distributor of beer, wine and non-alcoholic beverages in Southern Oregon . Headquartered in Medford , Oregon , it prides itself on giving remarkable service to its customers, providing a great culture for its teammates, and making significant contributions to the communities which it serves. For more information, call (541) 857-8443.

About Mt. Hood Beverage Company

The mission of Mt. Hood Beverage is to enable greatness among its people and within the communities it serves. With an emphasis on quality products and timely service, Mt. Hood Beverage is Oregon 's largest full-service beer, wine and non-alcoholic distributor. Founded in 1990, by the Agnew and Lytle families, Mt. Hood Beverage is headquartered in Portland , Oregon and serves all of western and central Oregon as well as the Yakima Valley and Tri-Cities in Washington . For more information, go to www.mhbco.com or call (503) 417-5001