Willamette Valley Vineyards Second Quarter 2009 Earnings Jump

SALEM, Ore., Aug. 14 /PRNewswire-FirstCall/ -- Willamette Valley Vineyards (Nasdaq: WVVI) a leading producer of Pinot Noir, reported a dramatic jump in net earnings of $253,784 for the Second Quarter 2009, a 61% increase over the prior year's same period. Earnings for the six months of $418,940 increased 93% over the prior year's six months.

As a result, the Company generated 5 cents and 9 cents per share during the three months and six months ending June 30, as compared with 3 cents and 4 cents of the prior year periods.

Jim Bernau, Founder and CEO of the winery said higher sales nationally, better inventory control and lower independent auditor costs are the primary reasons for the dramatic improvement.

"Even in a down economy, consumers are willing to pay for Oregon quality," explained Bernau, "We are lucky to be winemakers in such a remarkable valley with ideal growing conditions."

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.
                                Statement of Operations
                                      (unaudited)
                       Three months ended June 30,   Six months ended June 30,
                           2009          2008          2009          2008
                         --------     --------       --------      --------
    Net revenues
      Case revenue      $4,052,383    $3,884,983    $7,692,621    $7,287,656
      Facility Lease             -             -             -             -
                         ---------     ---------     ---------     ---------
    Total net revenues   4,052,383     3,884,983     7,692,621     7,287,656

    Cost of sales
      Case               2,056,684     1,973,844     3,819,828     3,727,678
      Bulk                       -             -             -             -
                         ---------     ---------     ---------     ---------
    Total cost of sales  2,056,684     1,973,844     3,819,828     3,727,678

    Gross profit         1,995,699     1,911,139     3,872,793     3,559,978

    Selling, general and
     administrative
     expenses            1,537,775     1,645,963     3,099,509     3,174,471
                         ---------     ---------     ---------     ---------
    Net operating
     income                457,924       265,176       773,284       385,507

    Other income (expense)
      Interest income            -        16,222             -        17,193
      Interest expense     (36,216)      (17,715)      (68,878)      (40,043)
      Other income(expense)  1,922        (1,139)        1,922            53
                            -------       -------       -------       ------
    Net income before
     income taxes          423,630       262,544       706,328       362,710

    Income tax             169,846       105,017       287,388       145,085
                           -------       -------       -------       -------
    Net income             253,784       157,527       418,940       217,625

    Retained earnings
     beginning of
     period              5,965,057     5,151,405     5,799,901     5,091,307
                         ---------     ---------     ---------     ---------
    Retained earnings
     end of period      $6,218,841    $5,308,932    $6,218,841    $5,308,932
                        ==========    ==========    ==========    ==========
    Basic earnings per
     common share             $.05          $.03          $.09          $.04

    Diluted earnings per
     common share             $.05          $.03          $.09          $.04

SOURCE Willamette Valley Vineyards