The directors of Cockatoo Ridge Wines Limited are pleased to announce that a Contract has been signed with Great Southern Vineyard Holdings Pty Ltd to effect the sale of CKR’s Sovereign vineyard, near Loxton, South Australia. The vineyard has been sold for a sum of $4.75 million with CKR retaining the 2007 crop worth $900,000. The proceeds, expected within 90 days on certain conditions being satisfied, will all be used to reduce bank debt. CKR has agreed to enter into a long-term grape purchase contract with Great Southern. When the transaction has been completed, final details will be provided. CKR’s Managing Director commented: "I am pleased with the above development. As we advised recently, the two cornerstone strategies we are pursuing are to reduce debt whilst boosting the focus on the sales and marketing of branded products. The disposal of Sovereign is the first step along the way of achieving the former goal."