Nascent Announces Intent to Explore Strategic Options for Two of Its Businesses: Palermo Italian Foods and Grupo Sur Promociones

  
    
  
  
    
      Nascent Wine Company, Inc. (OTCBB: NCTW), dba Nascent Food Service, Inc. 
      (‘Nascent’), the 
      only nationwide distributor of food and beverage products in Mexico, 
      announced today that it is exploring strategic options for two of its 
      businesses: Palermo Italian Foods, LLC (‘Palermo’) 
      and Grupo Sur Promociones de Mexico S.A. de C.V. (‘Grupo 
      Sur’).
    
    
      Sandro Piancone, CEO of Nascent, stated, “The 
      strategic review is consistent with our stated objective to be the 
      leader in food and beverage distribution in Mexico and to improve 
      margins and profits by leveraging our platform with branded and private 
      label products. The company is currently considering three possibilities 
      for these subsidiaries, (1) a strategic partnership, (2) joint venture, 
      (3) sale of these businesses. The proceeds will be reinvested into 
      Nascent’s current portfolio of faster growth, 
      higher margin businesses.
    
    
      “As the dominant force within the Mexican 
      foodservice marketplace, we believe by concentrating on our core 
      competencies of food distribution in Mexico, we will continue to 
      leverage our leadership position to capitalize on many additional 
      opportunities in this market. We believe the increased focus on the 
      strengths of our business model will greatly improve margins with a 
      leaner and more effective organization.”
    
    
      Palermo Foods, which was acquired by Nascent Foodservice in November of 
      2006, is an Italian food importer and distributer based in Miami, 
      Florida, primarily serving the southern Florida markets. Palermo Foods 
      operates out of a 33,000 square foot warehouse located in Miami, Florida 
      and utilizes a fleet of approximately 8 trucks.
    
    
      “Palermo has an excellent brand recognition 
      and reputation within the southern Florida markets for distributing high 
      quality Italian food products,” stated Mr. 
      Piancone. “However, it remains primarily a 
      U.S. business, and as such, does not fit within our strategic focus and 
      business model of distributing products to the Mexican marketplace. We 
      look forward to finding the right strategic solution for Palermo – 
      a solution that properly positions the Palermo brand for future growth.”
    
    
      Nascent Foodservice acquired Grupo Sur in July of 2007. Grupo Sur has 
      been in the Mexican market for 30 years, and is a leading field 
      marketing and below the line marketing organization. The Company has 
      4,500 contract employees servicing 240,000 retail accounts including 
      supermarkets and convenience stores. Grupo Sur’s 
      expertise includes merchandising, promotions, sampling, retail data 
      collection and sales and marketing of retail products.
    
    
      Mr. Piancone continued, “Grupo Sur is a 
      leading marketing organization in Mexico, serving some of the strongest 
      consumer branded companies including Procter and Gamble, Wal-Mart, 20th 
      Century Fox, General Mills and many others. While their services are of 
      value, we believe it is more cost efficient, and in the best long-term 
      interest of the Company, to outsource this strategic capability.”
    
    
      Mr. Piancone concluded, “While we believe 
      that the value in Palermo and Grupo Sur is significant, we feel it is in 
      the best interest of our shareholders, customers and employees to 
      explore strategic alternatives for these businesses. We are excited 
      about the long-term prospects of Nascent and look forward to exploiting 
      our position as the leading distributor of imported food and beverage 
      products in Mexico.”
    
    
      About Nascent Foodservice, Inc.
    
    
      Nascent Wine Company Inc. dba Nascent Foodservice is the only nationwide 
      distributor of imported products in Mexico, marketing and distributing 
      over 2,000 national and proprietary brand food and non-food products. 
      Nascent Foodservice also has the exclusive right to distribute Miller 
      Beer in Baja California, Mexico. In addition, Nascent sells select 
      products from Nestle, Ferrarelle Water, Cora Italian Food Products, 
      Avasoft Ice Cream, Mitsuki Asian products, Bonet European products, 
      ROCKSTAR and Fusion Energy drinks, and Jolly Rancher Soda, Nery’s 
      cheese products, among others.
    
    
      Nascent is focused on acquiring the most profitable and well positioned 
      distributors in Mexico with the best food and beverage portfolios in the 
      country. Nascent is currently servicing over 240,000 sales points 
      including supermarkets, convenience stores and foodservice accounts like 
      Wal-Mart, Costco, Soriana, Comercial Mexicana, AM/PM, 7-ELEVEN, OXXO and 
      many more. Nascent Foodservice trades on the OTC Bulletin Board as 
      Nascent Wine Company, Inc., ticker symbol NCTW.OB. For more information 
      about Nascent Foodservice, go to www.nascentfoodservice.com.
    
    
      Forward Looking Statements
    
    
      Statements made in this press release that express the Company's or 
      management's intentions, plans, beliefs, expectations or predictions of 
      future events, are forward-looking statements. Those statements are 
      based on many assumptions and are subject to many known and unknown 
      risks, uncertainties and other factors that could cause the Company's 
      actual activities, results or performance to differ materially from 
      those anticipated or projected in such forward-looking statements. In 
      light of significant risks and uncertainties inherent in forward-looking 
      statements included herein, the inclusion of such statements should not 
      be regarded as a representation by the Company that it will achieve such 
      forward-looking statements. For further details and a discussion of 
      these and other risks and uncertainties, please see our most recent 
      reports on Form 10-KSB and Form 10-QSB, as filed with the Securities and 
      Exchange Commission, as they may be amended from time to time. The 
      Company undertakes no obligation to publicly update any forward-looking 
      statement, whether as a result of new information, future events, or 
      otherwise.