Oregon Winery Posts Profit for First Quarter 2008

SALEM, Ore., May 28 /PRNewswire-FirstCall/ -- Willamette Valley Vineyards (NASDAQ:WVVI), Oregon's only publicly held winery, posted a profit for the First Quarter which was less than the prior year. Earnings for the First Quarter of 2008 were $60,102 as compared to $234,263 for 2007, or $0.01 per share as compared with $0.05 per share.

Winery Founder and CEO Jim Bernau warned investors the first Quarter of 2008 would be weaker due to inventory constraints and distributor order patterns. Although sales of the winery's products increased an average of 12% from distributors to their customers, distributors are ordering less to reduce the amount of inventory they are holding. Winery managers expect order patterns to be restored when distributor inventories are reduced.

The shortage of three key Pinot Noir products has also reduced sales revenue. The winery has increasing production but doesn't expect the additional case volumes to begin to be available until the Fourth Quarter.

Profits have also been affected by the growth in the sales staff due to higher levels of production soon to be available for sale as well as higher administrative costs due to increased government regulation.

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. 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).

WILLAMETTE VALLEY VINEYARDS, INC.
Statement of Operations
(unaudited)

Three months ended March 31,
2008 2007

Net revenues
Case revenue $ 3,402,674 $ 3,586,561
Facility Lease - 8,793

Total net revenues 3,402,674 3,595,354

Cost of sales
Case 1,753,834 1,896,231

Total cost of sales 1,753,834 1,896,231

Gross profit 1,648,840 1,699,123

Selling, general and administrative expenses 1,528,509 1,310,173

Net operating income 120,331 388,950

Other income (expense)
Interest income 971 17,058
Interest expense (22,328) (28,237)
Other income 1,196 12,667

Net income before income taxes 100,170 390,438

Income tax 40,068 156,175

Net income 60,102 234,263

Retained earnings beginning of period 5,091,307 3,404,646

Retained earnings end of period $ 5,151,409 $ 3,638,909

Basic earnings per common share $ .01 $ .05

Diluted earnings per common share $ .01 $ .05

First Call Analyst:
FCMN Contact:

Source: Willamette Valley Vineyards

CONTACT: Jim Bernau of Willamette Valley Vineyards, 1-800-344-9463

Web site: http://www.wvv.com/

2008-05-28 18:48:20 0372300 PRNEWSWIRE