SALEM, Ore., Nov. 10, 2011 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ: WVVI), a leading Oregon producer of Pinot Noir, generated a net profit of $373,407, or $0.08 cents per share for the third quarter of 2011. Results for the corresponding prior year period was a net profit of $171,345 or $0.04 cents per share.

Overall gross margins increased $118,972 or 6% and sales, general and administrative expenses decreased $166,085 or 10% for the three months ended September 30, 2011 from the corresponding prior year period.

"Distributed sales of wine purchased from other wineries are declining and are expected to continue to decline as the winery is discontinuing its wholesale operations called Bacchus Fine Wines by year end," stated founder Jim Bernau. He explained that the winery, as a small public company, could no longer afford the public reporting compliance costs of distributing wines. The winery's own wines are now distributed by Young's Northwest as they have been in California, Washington, Hawaii and Alaska.

This Third Quarter, the prominent magazine, Wine & Spirits, recognized the winery as one of the "Top 100 Wineries in the World for 2011." Editor, Joshua Greene stated, "Willamette Valley Vineyards' performance makes it a great ambassador for the wines of Oregon." Their recent reviews factored into their decision including the 93pt assessment of the 2008 South Block Pinot Noir from grapes planted by founder Bernau in 1983.

Willamette Valley Vineyards, Inc. is headquartered at its Estate Vineyard near Salem, Oregon. The Company's common stock is traded on NASDAQ (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.
    ---------------------------------
    STATEMENTS OF OPERATIONS
    ------------------------


                                         Three months ended               Nine months ended
                                            September 30,                   September 30,
                                            -------------                   -------------
                                             2011             2010            2011              2010
                                      (unaudited)      (unaudited)     (unaudited)       (unaudited)
                                      -----------      -----------     -----------       -----------

    SALES                              $4,344,920       $4,600,344     $11,760,257       $12,249,349
    COST OF
     SALES                              2,255,390        2,629,786       6,021,268         6,952,178
                                        ---------        ---------       ---------         ---------

    GROSS
     PROFIT                             2,089,530        1,970,558       5,738,989         5,297,171

    SELLING
     GENERAL
     &
     ADMINISTRATIVE
     EXPENSES                           1,472,235      1,638,320    4,675,864      4,974,422
                                        ---------        ---------       ---------         ---------

    INCOME
     FROM
     OPERATIONS                           617,295          332,238       1,063,125           322,749

    OTHER INCOME
     (EXPENSE)
      Interest
       income                               4,502            3,419           9,348             9,546
      Interest
       expense                            (51,480)         (53,265)       (150,026)         (162,962)
      Other
       income,
       net                                 30,606            3,182          34,449            16,146
                                           ------            -----          ------            ------

    INCOME
     BEFORE
     INCOME
     TAXES                                600,923          285,574         956,896           185,479

    INCOME
     TAX
     PROVISION                            227,516          114,229         382,758            74,191
                                          -------          -------         -------            ------

    NET
     INCOME                              $373,407         $171,345        $574,138          $111,288
                                         ========         ========        ========          ========

    Retained
     earnings
     beginning
     of
     period                             7,143,910      6,471,314    6,943,179      6,531,371

    Retained
     earnings
     end of
     period                             7,517,317        6,642,659       7,517,317         6,642,659



    BASIC
     NET
     INCOME
     PER
     COMMON
     SHARE                                  $0.08          $0.04        $0.12          $0.02
                                            =====            =====           =====             =====

    DILUTED
     NET
     INCOME
     PER
     COMMON
     SHARE                                  $0.08          $0.03        $0.12          $0.02
                                            =====            =====           =====             =====


    Weighted
     average
     number
     of                                 4,892,977        4,891,760       4,892,977         4,889,915
                                        =========        =========       =========         =========
      basic common
       shares
       outstanding

    Weighted
     average
     number
     of                                 4,896,865        4,898,203       4,897,423         4,896,530
                                        =========        =========       =========         =========
      diluted common
       shares
       outstanding

SOURCE Willamette Valley Vineyards