EX-99.1 2 a08-19097_2ex99d1.htm EX-99.1

Exhibit 99.1

For immediate release: August 14, 2008

Contact: Jim Bernau (800) 344-9463

NASDAQ: WVVI

Willamette Valley Vineyards Posts Profit for Second Quarter 2008

SALEM, Ore., August 14 — Willamette Valley Vineyards, Oregon’s only publicly held winery, posted a profit for the Second Quarter 2008 which was less than the prior year. Earnings for the Second Quarter of 2008 were $157,527 as compared to $265,177 for 2007, or $0.03 per share as compared with $0.06 per share for 2007.  Earnings for the first six months of 2008 were $217,625 as compared to $499,440 for 2007, or $0.04 per share as compared with $0.10 per share for 2007.

Profits were principally affected by substantial, one-time accounting and legal expenses due to problems resulting from the implementation of the new accounting and order processing system for the Company’s Wholesale Department called Bacchus Fine Wines.

Additionally, winery Founder and CEO Jim Bernau warned investors the first three Quarters of 2008 could be weaker due to the outage of three key Pinot Noir products. The winery is increasing production but doesn’t expect the additional case volumes to begin to be available until the Fourth Quarter.

Willamette Valley Vineyards, Inc. is Oregon’s leading producer of Pinot Noir and is headquartered at its Estate Vineyard near Turner, Oregon. Willamette Valley Vineyards common stock is traded on NASDAQ (Symbol: WVVI).

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and are identified by such words and phrases as “expects,”, “thinks,” “believes,” “anticipates” and words of similar import.  Such forward-looking statements are subject to risks and uncertainties and actual results could differ materially from those projected.  Such risks and uncertainties include, but are not limited to:  availability of financing for growth, availability of adequate supply of high quality grapes, successful performance of internal operations, impact of competition, changes in wine broker or distributor relations or performance, impact of possible adverse weather conditions, impact of reduction in grape quality or supply due to disease, impact of governmental regulatory decisions and other risks.

WILLAMETTE VALLEY VINEYARDS, INC.

Statement of Operations

(unaudited)

		Three months ended June 30,						Six months ended June 30,
		2008			2007			2008			2007
Net revenues
Case revenue		$	3,884,983		$	3,717,426		$	7,287,656		$	7,303,987
Facility Lease		—			8,793			—			17,586
Total net revenues		3,884,983			3,726,219			7,287,656			7,321,573
Cost of sales
Case		1,973,844			1,999,942			3,727,678			3,896,173
Bulk		—			986			—			986
Total cost of sales		1,973,844			2,000,928			3,727,678			3,897,159
Gross profit		1,911,139			1,725,291			3,559,978			3,424,414
Selling, general and administrative expenses		1,645,963			1,266,844			3,174,471			2,577,017
Net operating income		265,176			458,447			385,507			847,397
Other income (expense)
Interest income		16,222			11,053			17,193			28,111
Interest expense		(17,715		)	(27,523		)	(40,043		)	(55,760		)
Other income(expense)		(1,139		)	—			53			12,667
Net income before income taxes		262,544			441,977			362,710			832,415
Income tax		105,017			176,800			145,085			332,975
Net income		157,527			265,177			217,625			499,440
Retained earnings beginning of period		5,151,405			3,638,909			5,091,307			3,404,646
Retained earnings end of period		$	5,308,932		$	3,904,086		$	5,308,932		$	3,904,086
Basic earnings per common share		$	.03		$	.06		$	.04		$	.10
Diluted earnings per common share		$	.03		$	.05		$	.04		$	.10