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E&J Gallo Winery Gift Creates New School of Management At UC Merced

$10 Million Endowment To Be Created
August 9, 2002

Modesto, CA — Sowing the seeds of a new comprehensive management school in the San Joaquin Valley of California that is the home of its global business, the Ernest & Julio Gallo Winery has provided the lead gift to stimulate creation of a $10 million endowment at the University of California, Merced. The announcement came today from University President Richard Atkinson and Merced Campus Chancellor Carol Tomlinson-Keasey.

The E. & J. Gallo Winery and the Gallo family will donate a $5 million challenge gift for the new school, with the University agreeing to raise an additional $5 million to fund endowed faculty chairs and other gifts to create the $10 million founding endowment.

In recognition of the importance of the gift and the stature of the Gallo family, the University will name the new school The Ernest & Julio Gallo School of Management at UC Merced.

UC Merced, which is the 10th campus of the UC system, is expected to open in fall 2004 with an initial 1,000 students. The campus will over time grow to be a vibrant, comprehensive research university for 25,000 students and approximately 6,000 faculty and staff. The Ernest & Julio Gallo School of Management will be the first professional school created at the new university.

“This gift will enable the University to create a management school that will provide undergraduate, graduate, and doctoral level curricula in management, executive programs, and advanced research on all aspects of regional, national, and global business,” said Atkinson. “We are very pleased that the Ernest & Julio Gallo Winery and the Gallo family are partnering with the University in such a seminal way.”

Added Gallo co-founder and Chairman Ernest Gallo: “Since we founded the Winery in 1933, we have sought to build a business that recognizes excellence and market leadership. It is an honor for the Winery to assist the University of California – the world's most prestigious public University system – in creating a superior new management school that we hope will train outstanding people to be the leaders of tomorrow.”

Said Tomlinson-Keasey: “The Gallo family and employees of the E. & J. Gallo Winery have, over the decades, embodied the themes of entrepreneurship, excellence and leadership – and today this historic gift has created a similar opportunity for the University. In the coming years, we will build a dynamic new management school that will provide important research, teaching, and public service that explores the complex intersections of human institutions, economic activity, and global resource management.

“To be permanently associated with Ernest and Julio Gallo - who achieved international acclaim for their entrepreneurial efforts and management expertise - provides great honor to the university. We are committed to making the Ernest & Julio Gallo School of Management a school that reflects the E. & J. Gallo competitive spirit and vision. We want to develop in our students the values, the work ethic, and the commitment to excellence that they practice.”

The Ernest & Julio Gallo School of Management at UC Merced will initially offer undergraduate business courses leading to a BS degree. Over time, the school will plan an MBA degree offering and doctoral programs. The school will attract students who have achieved the highest levels of academic standing, and who have shown promise and leadership.

UC Merced currently employs approximately 100 educators and professionals. In addition to its main location, the Merced campus will utilize digital technology to create an educational network that serves students and communities throughout the San Joaquin Valley. The University currently operates educational centers in Bakersfield, Fresno, and Merced. Another center is planned for Modesto. In other research areas at the Merced campus, the University has already received commitments to fund 13 endowed professorships. In addition, the University has received major funding commitments from the Packard Foundation, the Hewlett Foundation, the Ford Foundation, the Sloan Foundation, and the Mary Stuart Rogers Foundation.

The Ernest & Julio Gallo Winery is a global company founded in 1933 by Ernest and Julio Gallo. The Modesto-based company has 3,500 employees worldwide, and provides fine wines to consumers in the United States and 86 foreign countries.

Over the past six and a half decades, the Ernest & Julio Gallo Winery has become the world's foremost winery in the art and science of grape growing and winemaking; and in the distribution and marketing of wines worldwide. To uphold this philosophy, Gallo Winery is now leading the industry in determining the best soils for growing grapes, the best monitoring of that growth, and the best methods to employ during the wine-making process. The company's dedication to continuous improvement in qualitycombined with decades of personal experience growing grapes and making winehas resulted in Gallo being the choice of more consumers than any other winery in the world.