US SECURITIES AND EXCHANGE COMMISSION
                    Washington, D.C. 20549


_______________________________________________________

                        FORM 10-QSB
_______________________________________________________


Quarterly Report Pursuant to Section 13 or 15 (d) of
       the Securities Exchange Act of 1934

         For the Quarter Ended June 30, 1999

           Commission File Number 0-21522

           WILLAMETTE VALLEY VINEYARDS, INC.

   (Exact name of registrant as specified in charter)

              Oregon                       93-0981021
(State or other jurisdiction of       (I.R.S. Employer
 incorporation or organization)    Identification Number)


_______________________________________________________

     8800 Enchanted Way, S.E., Turner, Oregon 97392
                    (503) 588-9463

   (Address, including Zip code, and telephone number,
     including area code, of registrant's principal
                    executive offices)

______________________________________________________

Indicate by check mark whether the registrant (1) has filed,
all reports required to be filed by Section 13 or 15(d) of
the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was
required to file such reports) and (2) has been subject to
such filing requirements for the past 90 days.

                                     [X] YES       [  ] NO

     Number of shares of common stock outstanding as of
                      June 30, 1999
               4,237,481 shares, no par value

Transitional Small Business Disclosure Format

                                     [  ] YES        [X] NO






WILLAMETTE VALLEY VINEYARDS, INC.
INDEX TO FORM 10-Q


Part I - Financial Information

Item 1--Balance Sheet

Statement of Operations

Cash Flow

Notes to Consolidated Financial Statements

Item 2--Management's Discussion and Analysis of Financial
Condition and Results of Operations

Part II - Other Information

Item 6--Exhibits and Reports of Form 8-K

Signature






PART I.  FINANCIAL INFORMATION

        WILLAMETTE VALLEY VINEYARDS, INC.

ITEM 1

                   Balance Sheet

                                June 30,   December 31,
                                   1999        1998
ASSETS                         (unaudited)
                               ___________  __________
Current Assets:
  Cash and cash equivalents    $  135,926   $ 149,401
  Accounts receivable trade, net  237,604     371,537
  Income taxes receivable          24,436      24,436
  Inventories                   5,080,021   4,601,808
  Prepaid expenses and
    other current                  78,432      86,986
  Deferred income taxes           234,203     234,203
                                _________   _________
  Total current assets          5,790,622   5,468,371

Vineyard development cost, net  1,938,098   1,892,538
Property and equipment, net     6,656,029   6,790,985
Investments                         4,974       4,974
Notes receivable                   48,647      46,937
Debt issuance costs, net          120,213     119,244
Other assets                       67,813      67,813
                               __________  __________
Total assets                 $ 14,626,396 $14,390,862
                             ============ ===========
LIABILITIES AND SHAREHOLDERS EQUITY

Current liabilities
   Line of credit           $  2,252,667   $ 1,652,667
   Current portion of
      long-term debt             191,176       191,176
   Accounts payable              637,789       315,185
   Accrued commissions
      and payroll                182,168       213,210
   Grapes payable                214,674       581,294
                               _________     _________
   Total current liabilities   3,478,474     2,953,532

Long-term debt                 4,039,713     4,101,772
Deferred income taxes            300,083       300,083
                               _________     _________
Total liabilities              7,818,270     7,355,387

Shareholders' equity
     Common stock, no par
     value - 10,000,000
     shares authorized,
     4,237,481 shares issued
     outstanding               6,789,055     6,781,256

Retained earnings                 19,071       254,219
                                ________      ________
Total shareholders' equity     6,808,126     7,035,475

Total liabilities and
  shareholders' equity     $  14,626,396  $ 14,390,862
                           =============   ===========
The accompanying notes are an integral part of this
financial statement.






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



              Three months            Six months
              ended June 30,          ended June 30,
              1999       1998         1999       1998
              _____     _____         _____      _____
Net Revenues
 Case Revenue
         $1,230,405 $1,338,836    $2,346,641 $2,445,721
 Bulk Revenue    -      88,393             -    323,645
          _________  _________    __________  _________
 Total Revenue
          1,230,405  1,427,229     2,346,641  2,769,366


Cost of Sales
 Case       528,741    599,336     1,030,446  1,099,293
 Bulk             -     95,135             -    306,314
          _________  _________    __________  _________
 Total Cost
  of Sales  528,741    694,471     1,030,446  1,405,607

Gross Margin
            701,664    732,758     1,316,195  1,363,759

Selling, general and
administrative expense
            678,432   639,533      1,324,441  1,207,074
          _________  _________    __________  _________

Net operating income (loss)
             23,232    93,225         (8,246)   156,685
          _________  _________    __________  _________

Other income (expense)
 Interest income
              2,480    12,696         4,506     16,265
 Interest expense
           (122,507) (123,899)     (232,430) (249,756)
 Other income   833         -         1,022     3,647
           _________  _________    __________  _________

Net loss before income taxes
            (95,962)  (17,978)     (235,148)  (73,159)

Income tax benefit
                  -        -             -           -
          _________  _________    __________  _________

Net loss    (95,962)  (17,978)     (235,148)  (73,159)
          _________  _________    __________  _________

Retained earnings beginning of
  period     115,033    271,018      254,219   326,199

Retained earnings end of period
              19,071    253,040       19,071   253,040

Basic loss per common share
               (.02)       -           (.06)     (.02)

Diluted loss per common share
               (.02)       -           (.06)     (.02)

Weighted average number of
basic common shares
outstanding
          4,237,481  4,232,681     4,237,481  4,232,681





             WILLAMETTE VALLEY VINEYARDS, INC.
                 Statement of Cash Flows
                       (unaudited)

                              Six Months Ended June 30,
                                   1999          1998

Cash flows from operating activities:
  Net loss                       $(235,148)   $(73,159)
  Reconciliation of net loss to net
   cash used for operating activities:
  Depreciation and amortization    361,948     278,219
  Equity change                      7,800       2,188
  Changes in assets and liabilities:
  Accounts receivable trade, net   133,933     261,862
  Other receivable                       -       6,583
  Inventories                     (478,214)    300,910
  Prepaid expenses and other current
                                     8,554     (70,399)
  Grapes payable                  (366,620)   (501,238)
  Accounts payable                 322,604     (21,434)
  Accrued commissions and payables (31,042)    (52,047)
                                  _________    ________

  Net cash provided (used)
   by operating activities        (276,185)    131,485
                                  _________    ________


Cash Flow from investing activities
  Construction expenditures
  and purchases of equipment      (192,381)   (138,396)
  Vineyard development expenditures(80,171)   (187,561)
  Cash received for investments          -      71,456
  Notes receivable                  (1,710)     (5,413)
                                  _________    ________

  Net cash used by investing activities
                                  (274,262)   (259,914)
                                  _________    ________


Cash Flows from financing activities:
  Line of credit borrowings (repayment)
                                   600,000     320,370
  Debt issuance cost                  (969)       (682)
  Increase in long term debt       (62,059)    295,792
                                 _________    ________

Net cash provided by financing activities
                                   536,972     615,480
                                 _________    ________

Net increase in cash and cash equivalents
                                  (13,475)     487,051

Cash and cash equivalents:
  Beginning of period             149,401       13,541
                                 _________    ________

  End of period                   135,926      500,592
                                 =========    ========
The accompanying notes are an integral part of this
financial statement.





              WILLAMETTE VALLEY VINEYARDS, INC.
               NOTES TO FINANCIAL STATEMENTS
                       (unaudited)




1.  BASIS OF PRESENTATION

The interim financial statements have been prepared by
the Company, without audit and subject to year-end
adjustment, in accordance with generally accepted
accounting principles, except that certain information
and footnote disclosures made in the latest annual report
have been condensed or omitted for the interim statements.
Certain costs are estimated for the full year and are
allocated to interim periods based on estimates of operating
time expired, benefit received, or activity associated with
the interim period.  The financial statements reflect all
adjustments, which are, in the opinion of management,
necessary for fair presentation.


Forward Looking Statement:

This Management's Discussion and Analysis of Financial
Condition and Results of Operation and other sections of this
Form 10QSB contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of
1995.  These forward-looking statements involve risks and
uncertainties that are based on current expectations,
estimates and projections about the Company's business, and
beliefs and assumptions made by management.  Words such as
"expects", "anticipates", "intends", "plans",
"believes", "seeks", "estimates" and variations of such
words and similar expressions are intended to identify such
forward-looking statements.  Therefore, actual outcomes and
results may differ materially  from what is expressed or
forecasted in such forward-looking statements due to numerous
factors, including, but 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, successful assimilation of Tualatin
Vineyards Inc.'s business with that of the Company and other
risks detailed below as well as those discussed elsewhere in
this Form 10QSB and from time to time in the Company's
Securities and Exchange Commission filings and reports.  In
addition, such statements could be effected by general
industry and market conditions and growth rates, and general
domestic economic conditions.

2. INVENTORIES BY MAJOR CLASSIFICATION ARE SUMMARIZED AS
FOLLOWS:

                                 June 30,  December 31,
                                   1999       1998

Winemaking and packaging
   materials                  $  390,741    $  211,550
Work-in-progress (costs relating
  to unprocessed and/or bulk
  wine products                2,160,629     1,923,852
Finished goods (bottled wines  2,528,651     2,466,406
  and related products)
                               ________       ________
                             $ 5,080,021    $4,601,808


3)  PROPERTY AND EQUIPMENT CONSIST OF THE FOLLOWING:

                                June 30,   December 31,
                                  1999        1998

Land and improvements      $  1,047,522    $ 1,041,326
Winery building and hospitality
  center                      4,530,576      4,539,821
Equipment                     3,911,042      3,715,612
                               ________       ________
                              9,489,140      9,296,759
Less accumulated depreciation(2,833,111)    (2,505,774)
                             __________      _________
                          $   6,656,029    $ 6,790,985
                             ==========     ==========


ITEM 2

      Management's Discussion and Analysis of
     Financial Condition and Results of Operation


RESULTS OF OPERATIONS

Long-term growth in earnings is based upon repositioning
the Company's brands by making higher quality wines to sell
at higher prices and margins.  The focus on making better
wines is working.

The 1996 Signature Cuvee Pinot Noir was rated the
leading Oregon Pinot Noir of the '96 vintage by noted
wine critic and Master of Wine, Clive Coates.  The
flagship Merlot of our Southern Oregon brand, Griffin
Creek, earned a score of "91" from the Wine Spectator -
the highest score ever received for an Oregon Merlot.
Our Pinot Blanc from Tualatin Estate Vineyards received
a rating of "Excellent" from Restaurant Wine
Magazine, their highest accolade given to an Oregon
Pinot Blanc.

The reduction in revenues is directly related to the
loss of discontinued product sales and the price
increases of our Vintage Series line.  Management
anticipates this trend to continue until the higher
quality products are brought successfully into
distribution.


Some products were discontinued, such as Edelweiss because
it was a low priced, blended, sweet white wine of
California and Oregon grapes.  The "Lot 27" and "28"
Chardonnay and Pinot Noir were discontinued because
they were low priced to the consumer and of a quality
reflective of the price.  Management felt these wines
interfered with our repositioning effort and the wine
trade and consumers' perception of the Willamette
Valley Vineyards brand.


The Vintage and Founders' Reserve lines were upgraded
in wine quality and package presentation.  Front line
prices to distributors were increased in September
1998.  For example, Vintage Pinot Noir increased from
$80 to $88 per case, Whole Cluster Pinot Noir from $74
to $94 per case, and Pinot Gris from $74 to $88 per
case.  These increases have resulted in suggested
prices to the consumer rising from $11 to $13 per
bottle.  These price increases, combined with the
discontinuance of many significant prices discounts,
has resulted in a significant reduction in sales from
wholesale to retail.


The reduction in sales is uneven across the country.
Some distributors, who have businesses that focus on
selling high quality wines and have room in their
portfolio to focus on higher quality Oregon wines, are
not experiencing the sales reductions with Pinot Noir.
Where Willamette Valley Vineyards was positioned as a
lower priced "value" brand in distributors' book of
business, time and effort is needed to convert their
sales force and broaden distribution in their
respective markets.  Management is now offering sales
incentives to distributors to increase distribution of
the product line and some temporary reductions in
prices (while remaining above prior years' prices) to
increase depletions.


The winery has built a substantial amount of high
quality wines which are currently being released into the
market.  Successful distribution of these new wines
will result in higher total revenues and margins.  For
example:


               Inventory  Inventory  Revenue   Revenue
Product          cases      cases     @ FOB     @ FOB
                6-30-98   6-30-99    6-30-98   6-30-99
Willamette Valley Vineyards
 Founders' Reserve Pinot Noir
                 2,405     3,148     400,433   554,048
 Vineyard Designate Pinot Noir
                   0       1,600          0    384,000
 Signature Cuvee Pinot Noir
                  236        661      67,496   224,740

Griffin Creek
  Merlot          730        783     141,620   197,316
  Syrah             0        350           0    79,100

Total                                609,549 1,439,204





Winery Operations

The Company's revenues from winery operations before the
deduction of excise taxes are summarized as follows:


                   Three Months ended      Six Months ended
                        June 30,              June 30,
                    1999      1998       1999        1998

Tasting Room Sales
 and Rental Income
                $226,785   $223,549    $377,282   $378,329
On-site and
 off-site festivals
                  85,920    107,596     200,335    225,500
In-state sales   497,269    575,834     913,164  1,001,897
Out-of-state sales
                 451,238    499,648     908,857    936,838
Bulk wine/
 Misc. sales      12,754     88,393      29,719    323,645
                 _______    _______     _______    _______
Total Revenue
              $1,273,966 $1,495,020  $2,429,357 $2,866,209

Less Excise Taxes 43,561     67,791      82,716     96,843
              __________  _________   _________  _________
Net Revenue   $1,230,405 $1,427,229  $2,346,641 $2,769,366
              ==========  =========   =========  =========

Tasting Room sales and rental income for the three
months ended June 30, 1999 increased 1% over the same
period in 1998.  For the first six months of 1999, the
sales decreased less than one percent over the same
period in 1998.  Retail sales in the tasting room have
remained static for the first half of 1999.  The
Company believes the current weather pattern of cool
and cloudy days witnessed in Oregon this spring was a
factor in contributing to stagnant sales.  In order to
help improve the Company's image as one of Oregon's
high quality and high price wineries, it eliminated one of
its lower price products, Edelweiss.  This adversely
affected the dollar revenue in the tasting room in the
first half of 1999.  Edelweiss sales dropped from 845
cases in 1998 to 194 cases in 1999 in the first six
months of each respective period.

On-site and off-site festival sales for the three
months ended June 30, 1999 decreased 20% over the
second quarter of 1998.  For the first half of 1999,
sales in this category decreased 11% over the same
period in 1999.  During the second quarter of 1999, the
Company's revenue from its largest festival, Memorial
Day Weekend, dropped from $22,000 in 1998 to $20,000 in
1999.  During the first half of 1999 and specifically
the second quarter of 1999, the Company saw a decline
in wine mail orders from mailings that are directly
related to its on-site events.  The Company has hired a
new retail manager whose main task will be to improve
sales in this category.

Sales in the state of Oregon, through the Company's
independent sales force, decreased 14% in the three
months ending June 30, 1999 over the same period in
1998.  For the first half of 1999, the sales decreased
9% over the same period in 1998.  The Company's
strategy, to replace its lower price "Lot 27"
Chardonnay with a higher quality and higher price
Vintage Chardonnay, affected sales in Oregon.  The number
of cases sold in 1999 of "Lot 27" Chardonnay declined
by 495 cases in the first half of 1999 as compared to
the same period in 1998.  The Company raised the price
on its Pinot Gris wine, which saw a reduction of 362
cases in the first half of 1999 over 1998.  These two
items accounted for a reduction in revenue of nearly
$75,000 between the first half of 1999 and the first
half of 1998.

Out-of-state sales in the three months ending June 30,
1999 decreased 10% over the same period in 1998.  For
the first half of 1999, sales decreased 3% over
the same period in 1998.  Sales in the Tualatin Estate
product line have been adversely effected by the price
increase and upgraded packaging from Tualatin Vineyards
to Tualatin Estate, which took effect in the second half of
1998.  An example is Tualatin Estate Riesling where the
price increased to $59 a case in the first half of 1999
from $40.25 in the first half of 1998.  This price
increase reduced the sales in the first half of 1999 by
562 cases, or approximately $20,000 in lost revenue, from
sales to the Company's largest distributor in Oregon.
The Company has seen an overall reduction of approximately
30% in case depletions but the price increases have made
up for a large part of the volume reductions between the
first half of 1999 against 1998.

Bulk wine sales were made in the first half of 1998 to
further reduce excess inventories from the large harvest of
1997. Whereas in 1998 harvest crop yields were lower, the
Company's bulk inventory levels meet its current sales
projection so, at this time, the Company has sold only bulk
wine for which it had previous contract commitments.


Excise taxes
The Company reports its excise taxes as a deduction of sales
revenue to equal net revenue (as shown on the Statement of
Operations).  The amount for the first half of 1999 was
$82,716. For the same period in 1998, the excise taxes
collected was $96,843.


Gross Margin

Winery Operations

As a percentage of revenue, gross margin for the winery
operations increased to 57% for the quarter ending June 30,
1999 as compared to 51% in the second quarter of 1998.  For
the first half of 1999, the gross margin increased to 56%
as compared to 49% for the first half of 1998.  After
adjusting for the lower margin bulk wine sales, the gross
margin would have been 57% for the quarter ending June 30,
1999 as compared to 55% for the same period in 1998. For the
first half of 1999, the adjusted gross margin would have
been 56% as compared to 55% in the first half of 1998.  In
the past few years, the Company has experienced higher
production costs, specifically in the price of grapes
it purchases from other vineyards.  In order to keep margins
at a sustained level, the Company has expanded its marketing
efforts to sell higher priced wines with  greater profit
margins. The price increases that went into effect in the
last half of 1998 have contributed to the increase in the
gross margins in 1999 over 1998. The Company expects that
these margins will continue to grow as it releases its
Signature Series and Vineyard Designate Pinot Noir, which
will retail for over $35 per bottle.

Selling, General and Administrative Expense
Selling, general and administrative expenses increased 6% to
$678,432 in the second quarter of 1999 from $639,533 in the
second quarter of 1998.  For the first half of 1999,
selling, general and administrative expenses increased 10%
to $1,324,441 from $1,207,074 in the first half of 1998.
The increase was principally attributed to higher costs due
to the transition from replacing commission sales agents
with full time professional sales managers.  The Company
pays its in-state sales representatives by commission
which is included as a selling expense.  At the beginning of
1999, the Company hired a new West Coast Sales Manager and
an East Coast Sales Manager, replacing several different
sales agents who were paid by commissions on collected
revenue.  In the first half of 1999, as the agents were
phased out, the Company had the expense of commissions paid
to the agents and the expenses paid to the new managers.  The
direct travel expense for the new managers was up $42,000 in
the first half of 1999 from 1998 as the new managers
traveled to the majority of the Company's distributors
throughout the United States.

As a percentage of revenue from winery operations, selling,
general and administrative expenses increased to 55% in the
second quarter of 1999 from 45% in the second quarter of
1998.  For the first half of 1999, as a percentage of
revenue from winery operations, selling, general and
administrative expenses increased to 56% from 44% in the
second quarter of 1998.  The increase in percentage was due
to the decrease in total revenue plus the increase in
selling cost for the first six months of 1999 over the same
period in 1998.  The Company is spending according to its
budget and expects that expenses as a percentage of revenues
to decrease in the second half of 1999.

Interest Income, Other Income and Expense

Interest income/other income decreased to $3,313 for the
second quarter of 1999 from $12,696 for the second quarter
of 1998 because the Company no longer receives interest
income from invested funds set aside for the completion of
the storage facility.  For the first half of 1999, interest
income/other income decreased to $5,528 from $19,912 for the
first half of 1998.

Interest expense decreased to $122,507 in the second quarter
of 1999 from $123,899 in 1998.  For the first half of 1999,
interest expense  decreased to $232,430 from $249,756 for
the second half of 1998.  Interest costs were lower because
the Company paid additional interest fees in 1998 to
renegotiate its long term loans to lower its rates over the
term of the loans.  Also, in the first half of 1999, the
Company capitalized $14,699 of interest cost to vineyard
development for money borrowed to plant grapes at Tualatin
Estate.   It is the Company's goal to reduce its debt over
time to ease the heavy burden of interest cost and provide
better financial flexibility.



LIQUIDITY AND CAPITAL RESOURCES

At June 30, 1999, the Company had a working capital balance
of $2.3 million and a current ratio of 1.7:1.  At December
31, 1998, the Company had a working capital balance of $2.5
million and a current ratio of 1.9:1.  It is very important
that sales improve in the balance of the year, not only to
show a profit, but more particularly to reduce inventories
to generate cash to pay down account payable and debt and
meet on-going financial obligations.

The Company had a cash balance of $135,926 at June 30, 1999.
Of the total cash available, the Company has set aside funds
in reserve for various future commitments.  At June 30,
1999, the Company held $103,000 in reserve to complete the
planting and vineyard development cost of the newly planted
60 acres at Tualatin Vineyards.  This amount remained from a
$1.3 million loan taken out in April of 1997 to purchase
Tualatin Vineyards and to plant additional acreage at
Tualatin.

On March 31, 1999, the Company obtained an increase in its
line of credit from Farm Credit Services.  At June 30, 1999,
the line of credit balance was $2,252,667.  The Company
raised the line of credit to $2,500,000 from $2,000,000 to
meet the Company cash needs in 1999 until renewal in March
2000.

As of June 30, 1999, the Company had a total long-term debt
balance of $4,146,075 owed to Farm Credit Services.  This
debt was used to finance the Hospitality Center, invest in
winery equipment to increase the Company's winemaking
capacity, complete the storage facility, and purchase
Tualatin Vineyards.  At December 31, 1998, the Company was in
violation of one of its debt coverage covenants.  Farm
Credit Services has temporarily released the Company from
complying with this one covenant.  Farm Credit Services has
notified the Company that unless the Company is able to
comply with the debt coverage covenant and reduce borrowing
under the line of credit to $1,900,000 at December 31, 1999,
Farm Credit Services can make no assurances for continued
financing under the line of credit beyond the May 1, 2000
operating loan maturity date.

At June 30, 1999, the Company owed $214,674 payable to a
grape grower for the 1997 and 1998 harvest, which will be
paid on a quarterly basis for wine sold during that quarter.

At June 30, 1999, the Company has contracted or is in the
final stage to contract the purchase of approximately $1
million of grapes for its 1999 harvest.







PART II  OTHER INFORMATION

Other

a.  Status of Computer Software for the year 2000.


The Company began to develop its strategy in the first part
of 1998 to make itself "business ready" for the year 2000.
Its first step was to make all levels of the Company aware of
the basic problems the Company can expect as the year
2000 approaches.  Each month the Company holds an all staff
meeting.  The Company began to set aside time in each meeting
to discuss the problem in detail.  The Company has made
educational awareness a priority in 1999.  The Company's
small staff makes it easy to communicate with its employees
and develop strategy plans.

In November of 1998, the Company's outside computer
consultants identified each of the different computer based
systems which support the Company's business and production
needs.  Once the equipment was identified, tests were
performed to determine which equipment passed or failed the
Y2K compliance testing.  A list of the equipment was made and
the Company started to replace the critical equipment
immediately.  From its plan, the Company expects to replace
the majority of the effected equipment by the year 2000.  At
this date, there are only two pieces of equipment for which
the test results have not been received.  These are the
telephone system and the tank control system.  The Company
expects that both of these systems will be corrected, if
necessary, by the year 2000.

Based on tests performed by the consultants and on contacts
with equipment manufacturers, the Company is beginning its
assessment evaluation to determine the severity of the
problem and what needs to be fixed.  All critical items on
the equipment list have been addressed, including the
financial reporting, networking communications, and Point-of-
Sale system in the tasting room.  As of March 31, 1999, the
Company has spent $15,000 on software and hardware upgrades
and expects to spend an additional $30,000 in 1999 to insure
that its basic needs are taken care of by December 31, 1999.

Due to the nature of the winemaking business, the Company
feels most of the critical needs are now fulfilled. The
Company is currently testing all temperature control systems
for its stainless steel tanks and is prepared to take any
necessary action to make them compliant for the year 2000.
However, in January, typically, there is very little activity
on the production side of the winery.  At that time, the wine
is aging in stainless steel tanks and oak barrels.  The
Company does not expect to bottle any wine during the first
few months after the year 2000.  The Winery's average
temperature ranges from 40 to 50 degrees in these months so
the wine shall not be in danger of spoiling.

The Company has prepared a short survey to mail to its
primary vendors and all distributors to inquire as to their
abilities for compliance in the year 2000.  The surveys were
sent out in the first part of May 1999 and the Company has
received most of the surveys back from its vendors.  From the
returned surveys, the Company will determine any critical
needs to be met by the end of the year.  The majority of the
Company's customers in the state of Oregon are on a cash-
collected-at-delivery basis so there is no need to see if
their payable software is compliant for the year 2000.  The
out-of-state customers pose the most significant problem
since the Company must be aware that all of their
distributors have the means to conduct normal business after
2000.  All of the surveys returned have signified that all
respondents are Y2K compliant or will be by December 31, 1999.




Item 6     Exhibits and Reports on Form 8-K.

No exhibits or reports.



SIGNATURES


Pursuant to the requirements of the Security Exchange Act of
1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.


                 WILLAMETTE VALLEY VINEYARDS, INC.




Date:                         By /s/ James W Bernau
                                James W Bernau
                                  President


Date:                          By /s/ John Moore
                                  John Moore
                                  Controller





SIGNATURES



Pursuant to the requirements of the Security Exchange Act of
1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.

Date:   __________________________________
         By  James W Bernau

         President



Date:   __________________________________
         By John Moore

         Controller