NEWS OUT 6/20/12 ************ California Grapes

NEWS OUT 6/20/12

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California Grapes International, Inc. Wraps up Southern China Wine Tour with an Increase of One Million Dollars in Revenue
Last update: 6/20/2012 9:30:01 AM

HENDERSON, Nev., Jun 20, 2012 (BUSINESS WIRE) -- California Grapes International, Inc. (otcpink:CAGR) a leading provider of full service export, marketing, promotions, distribution and sales for the CA Wine Industry internationally, has secured purchase orders and distribution channels in Southern China to increase its sales revenue in the next year for this area, well above $1 million Dollars.

The wine tour in Guangzhou-China was a California wine delegation, sponsored by the California Wine Institute , the Agriculture Trade Office, and the Perl River Delta American Wine Import Association working together to create a very successful event.

The main focus of this event was to promote California wines in Hong Kong and China and "CGI" was honored to represent Schug's Winery . As a member of California Wine Institute and a premier producer of Caneros Valley Pinot Noir, Shug Caneros Estate Wines have been recognized and celebrated for over 30 years.

The California wine market in China is dramatically growing and this is noticeable in the demographics of young upper class Chinese, attending the event. This group will be the key to the success of the California wine industry in China, they are well traveled with disposable income, mostly educated in American Universities and have knowledge of the quality and value of California wines.

The total U.S. wine exports, 90% from California, hit a record $1.39 billion in 2011, up 22% compared to the previous year. Hong Kong remained California's third largest export market by value after the European Union and Canada, and revenues reached $163 million, up 39%. Exports to Japan were up 39% to $105 million; China had 42% growth with $62 million; Vietnam was up 266% to $21 million and South Korea was up 13% to $13 million.

"It was an extreme honor to represent Schug's Winery and have the support of such an iconic winery and winemaker that Mr. Walter Schug is, he truly is one of the largest legions and pioneer of the California wine industry. The Pinot Nior was in a class of its own, only rivaled by its world class Chardonnay." Stated Mr. Yglesias EVP of California Grapes International.

Additional Mr. Yglesias stated, "I would like to thank our hosts, the California Wine Institute for organizing such a successful tour event in China, my warmest congratulation goes out to Mr. Eric Pope and the CWI Team in China. Like always, our unsung hero; the Guangzhou ATO office under the leadership of Mr. Jorge Sanchez has been instrumental in the marketing and awareness of American wines in China, they have worked diligently throughout the last couple of years to bring the taste of American to China. Kudos to all that helped in this event and the participants that pave the way in this emerging market."

California Grapes International, Inc.
Jeffrey Crittenden, 1-855-558-WINE
ir@cagrapes.com