----

----

|  Oregon                                                                          |   |  93-0981021                                 |
|---------------------------------------------------------------------------------------|--------|--------------------------------------------------|
|  (State or other jurisdiction of  incorporation or organization)  |   |   (I.R.S. Employer Identification No.) |

----

|  o |  Large accelerated filer       |   |  o |  Accelerated filer         |
|---------|-----------------------------------------------|--------|---------|---------------------------------|
|    |                                          |   |    |                            |
|  o |  Non-accelerated filer    |   |  x |  Smaller reporting company |

----

|                                                                                                 |                                            |   Page |
|------------------------------------------------------------------------------------------------------|-------------------------------------------------|-------------|
|  Part I - Financial Information                                                                 | 3                                               |
|                                                                                                 |                                            |        |
|  Item 1 - Financial Statements                                                                  | 3                                               |
|                                                                                                 |                                            |        |
|                                                                                                 | Balance Sheets                                  | 3           |
|                                                                                                 |                                            |        |
|                                                                                                 | Statements of Operations                        | 4           |
|                                                                                                 |                                            |        |
|                                                                                                 | Statements of Cash Flows                        | 5           |
|                                                                                                 |                                            |        |
|                                                                                                 | Notes to Unaudited Interim Financial Statements | 6           |
|                                                                                                 |                                            |        |
|  Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations | 9                                               |
|                                                                                                 |                                            |        |
|  Item 3 – Quantitative and Qualitative Disclosures about Market Risk                      | 13                                              |
|                                                                                                 |                                            |        |
|  Item 4 - Controls and Procedures                                                               | 13                                              |
|                                                                                                 |                                            |
|  Part II - Other Information                                                                    | 14                                              |
|                                                                                                 |                                            |        |
|  Item 1 - Legal Proceedings                                                                     | 14                                              |
|                                                                                                 |                                            |        |
|  Item 1A – Risk Factors                                                                   | 14                                              |
|                                                                                                 |                                            |        |
|  Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds                           | 15                                              |
|                                                                                                 |                                            |        |
|  Item 3 - Defaults Upon Senior Securities                                                       | 15                                              |
|                                                                                                 |                                            |        |
|  Item 4 – (Removed and Reserved)                                                          | 15                                              |
|                                                                                                 |                                            |        |
|  Item 5 – Other Information                                                               | 15                                              |
|                                                                                                 |                                            |        |
|  Item 6 – Exhibits                                                                        | 16                                              |
|                                                                                                 |                                            |        |
|  Signatures                                                                                     | 17                                              |
|                                                                                                 |                                            |        |

----

| ASSETS                                                                   |   |        |       |   |         |   |
|--------------------------------------------------------------------------|--------|-------------|------------|--------|--------------|--------|
|                                                                     |   |        |       |   |         |   |
|                                                                     |   | June 30,    |       |   | December 31, |   |
|                                                                     |   | 2012        |       |   | 2011         |   |
|                                                                     |   | (unaudited) |       |   | (audited)    |   |
|                                                                     |   |        |       |   |         |   |
| CURRENT ASSETS                                                           |   |        |       |   |         |   |
| Cash and cash equivalents                                                |   | $           | 3,974,246  |   |         | $      | 3,411,292 |   |
| Accounts receivable, net                                                 |   |        | 957,920    |   |         |   | 986,591 |   |
| Inventories (Note 3)                                                     |   |        | 8,863,747  |   |         |   | 8,843,813 |   |
| Prepaid expenses and other current assets                                |   |        | 105,712    |   |         |   | 138,382 |   |
| Current portion of note receivable                                       |   |        | 52,379     |   |         |   | 61,492 |   |
| Current portion of distribution agreement receivable                     |   |        | 250,000    |   |         |   | 250,000 |   |
| Current portion of assets from discontinued operations, net              |   |        | 70,633     |   |         |   | 847,053 |   |
| Income tax receivable                                                    |   |        | 34,798     |   |         |   | 229,337 |   |
| Total current assets                                                     |   |        | 14,309,435 |   |         |   | 14,767,960 |   |
|                                                                     |   |        |       |   |         |   |   |   |
| Vineyard development costs, net                                          |   |        | 1,605,711  |   |         |   | 1,643,546 |   |
| Property and equipment, net (Note 4)                                     |   |        | 7,447,423  |   |         |   | 7,238,437 |   |
| Assets from discontinued operations, net                                 |   |        | 62,300     |   |         |   | 62,300 |   |
| Debt issuance costs                                                      |   |        | 49,061     |   |         |   | 50,752 |   |
| Distribution agreement receivable, net of current portion                |   |        | 500,000    |   |         |   | 500,000 |   |
| Note receivable                                                          |   |        | -          |   |         |   | 19,276 |   |
| Other  assets                                                  |   |        | -          |   |         |   | 4,456 |   |
|                                                                     |   |        |       |   |         |   |   |   |
| TOTAL ASSETS                                                             |   | $           | 23,973,930 |   |         | $      | 24,286,727 |   |
|                                                                     |   |        |       |   |         |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                               |   |        |       |   |         |   |   |   |
|                                                                     |   |        |       |   |         |   |   |   |
| CURRENT LIABILITIES                                                      |   |        |       |   |         |   |   |   |
| Current portion of long-term debt                                        |   |        | 204,068    |   |         |   | 197,936 |   |
| Accounts payable                                                         |   |        | 460,421    |   |         |   | 301,168 |   |
| Accrued expenses                                                         |   |        | 364,591    |   |         |   | 438,983 |   |
| Deferred income taxes                                                    |   |        | 351,000    |   |         |   | 351,000 |   |
| Current portion of deferred revenue-distribution agreement               |   |        | 142,857    |   |         |   | 142,857 |   |
| Grapes payable                                                           |   |        | -          |   |         |   | 389,233 |   |
| Total current liabilities                                                |   |        | 1,522,937  |   |         |   | 1,821,177 |   |
|                                                                     |   |        |       |   |         |   |   |   |
| Long-term debt, net of current portion                                   |   |        | 3,922,048  |   |         |   | 4,010,654 |   |
| Deferred rent liability                                                  |   |        | 204,569    |   |         |   | 208,047 |   |
| Deferred revenue-distribution agreement, net of current portion          |   |        | 738,093    |   |         |   | 809,523 |   |
| Deferred gain                                                            |   |        | 233,598    |   |         |   | 249,646 |   |
| Deferred income taxes                                                    |   |        | 754,000    |   |         |   | 754,000 |   |
| Total liabilities                                                        |   |        | 7,375,245  |   |         |   | 7,853,047 |   |
|                                                                     |   |        |       |   |         |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                            |   |        |       |   |         |   |   |   |
|                                                                     |   |        |       |   |         |   |   |   |
| SHAREHOLDERS’ EQUITY                                               |   |        |       |   |         |   |   |   |
| Common stock, no par value, 10,000,000 shares authorized,                |   |        |       |   |         |   |   |   |
| 4,821,212 and 4,892,977 issued and outstanding at                        |   |        |       |   |         |   |   |   |
| June 30, 2012 and December 31, 2011                                      |   |        | 8,642,548  |   |         |   | 8,632,746 |   |
| Retained earnings                                                        |   |        | 8,205,102  |   |         |   | 7,800,934 |   |
| Less: Common stock held in treasury, at cost, 71,765 and 0, respectively |   |        |       |   |         |
| June 30, 2012 and December 31, 2011                                      |   |        | (248,965   | )      |         |   | - |   |
| Total shareholders’ equity                                         |   |        | 16,598,685 |   |         |   | 16,433,680 |   |
|                                                                     |   |        |       |   |         |   |   |   |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY                         |   | $           | 23,973,930 |   |         | $      | 24,286,727 |   |

----

|                                           |   | Three months ended |      |   | Six months ended |   |
|------------------------------------------------|--------|--------------------|-----------|--------|------------------|--------|
|                                           |   | June 30,           |      |   | June 30,         |   |
|                                           |   | 2012               |      |   | 2011             |   |   | 2012 |   |   | 2011 |   |
|                                           |   | (unaudited)        |      |   | (unaudited)      |   |   | (unaudited) |   |   | (unaudited) |   |
|                                           |   |               |      |   |             |   |   |   |   |   |   |   |
| SALES                                          |   | $                  | 2,851,146 |   |             | $      | 2,861,609 |   |   | $ | 5,573,750 |   |   | $ | 5,597,621 |   |
| COST OF SALES                                  |   |               | 1,151,833 |   |             |   | 1,183,807 |   |   |   | 2,261,075 |   |   |   | 2,449,068 |   |
|                                           |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| GROSS PROFIT                                   |   |               | 1,699,313 |   |             |   | 1,677,802 |   |   |   | 3,312,675 |   |   |   | 3,148,553 |   |
|                                           |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| SELLING, GENERAL & ADMIN EXPENSES          |   |               | 1,213,979 |   |             |   | 1,087,274 |   |   |   | 2,374,512 |   |   |   | 2,303,288 |   |
|                                           |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| INCOME FROM OPERATIONS                         |   |               | 485,334   |   |             |   | 590,528 |   |   |   | 938,163 |   |   |   | 845,265 |   |
|                                           |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                         |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                |   |               | 1,246     |   |             |   | 2,247 |   |   |   | 4,237 |   |   |   | 4,847 |   |
| Interest expense                               |   |               | (42,668   | )      |             |   | (49,369 | ) |   |   | (81,788 | ) |   |   | (98,546 | ) |
| Other income, net                              |   |               | 35,630    |   |             |   | 2,778 |   |   |   | 73,054 |   |   |   | 3,891 |   |
|                                           |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| INCOME BEFORE INCOME TAXES                     |   |               | 479,542   |   |             |   | 546,184 |   |   |   | 933,666 |   |   |   | 755,457 |   |
|                                           |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| INCOME TAX PROVISION                           |   |               | (203,081  | )      |             |   | (236,077 | ) |   |   | (382,567 | ) |   |   | (323,026 | ) |
|                                           |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| INCOME FROM CONTINUING OPERATIONS              |   | $                  | 276,461   |   |             | $      | 310,107 |   |   | $ | 551,099 |   |   | $ | 432,431 |   |
|                                           |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| DISCONTINUED OPERATIONS                        |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Loss from operations                           |   |               | (97,499   | )      |             |   | (237,480 | ) |   |   | (253,330 | ) |   |   | (399,482 | ) |
| Income tax benefit                             |   |               | 40,950    |   |             |   | 99,742 |   |   |   | 106,399 |   |   |   | 167,782 |   |
|                                           |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| LOSS FROM DISCONTINUED OPERATIONS              |   |               | (56,549   | )      |             |   | (137,738 | ) |   |   | (146,931 | ) |   |   | (231,700 | ) |
|                                           |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME                                     |   | $                  | 219,912   |   |             | $      | 172,369 |   |   | $ | 404,168 |   |   | $ | 200,731 |   |
|                                           |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| BASIC NET INCOME FROM CONTINUING          |   |               |      |   |             |   |   |   |   |   |   |   |   |
|  OPERATIONS PER COMMON SHARE              |   | $                  | 0.06      |   |             | $      | 0.06 |   |   | $ | 0.11 |   |   | $ | 0.09 |   |
| BASIC NET LOSS FROM DISCONTINUED          |   |               |      |   |             |   |   |   |   |   |   |   |   |
| OPERATIONS PER COMMON SHARE                    |   | $                  | (0.01     | )      |             | $      | (0.03 | ) |   | $ | (0.03 | ) |   | $ | (0.05 | ) |
|                                           |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| BASIC NET INCOME  PER COMMON SHARE   |   | $                  | 0.05      |   |             | $      | 0.04 |   |   | $ | 0.08 |   |   | $ | 0.04 |   |
|                                           |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| DILUTED NET INCOME FROM CONTINUING             |   |               |      |   |             |   |   |   |   |   |   |   |   |
| OPERATIONS  PER COMMON SHARE         |   | $                  | 0.06      |   |             | $      | 0.06 |   |   | $ | 0.11 |   |   | $ | 0.09 |   |
| DILUTED NET LOSS FROM DISCONTINUED        |   |               |      |   |             |   |   |   |   |   |   |   |   |
| OPERATIONS PER COMMON SHARE                    |   | $                  | (0.01     | )      |             | $      | (0.03 | ) |   | $ | (0.03 | ) |   | $ | (0.05 | ) |
|                                           |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| DILUTED NET INCOME  PER COMMON SHARE |   | $                  | 0.05      |   |             | $      | 0.04 |   |   | $ | 0.08 |   |   | $ | 0.04 |   |
|                                           |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of                     |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| basic common shares outstanding                |   |               | 4,871,303 |   |             |   | 4,892,977 |   |   |   | 4,879,494 |   |   |   | 4,892,977 |   |
| Weighted average number of                     |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| diluted common shares outstanding              |   |               | 4,877,145 |   |             |   | 4,897,150 |   |   |   | 4,885,336 |   |   |   | 4,897,700 |   |

----

|                                                          |   | Six months ended June 30, |      |
|---------------------------------------------------------------|--------|---------------------------|-----------|
|                                                          |   | 2012                      |      |   | 2011 |   |
|                                                          |   | (unaudited)               |      |   | (unaudited) |   |
|                                                          |   |                      |      |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES OF CONTINUING OPERATIONS |   |                      |      |   |
| Net income                                                    |   | $                         | 551,099   |   |   | $ | 432,431 |   |
| Adjustments to reconcile net income to net cash:              |   |                      |      |   |   |   |   |   |
| from operating activities                                     |   |                      |      |   |   |   |   |   |
| Depreciation and amortization                                 |   |                      | 394,536   |   |   |   | 368,037 |   |
| Loss on disposition of property & equipment               |   |                      | 1,733     |   |   |   | - |   |
| Stock based compensation expense                              |   |                      | 9,802     |   |   |   | - |   |
| Deferred rent liability                                       |   |                      | (3,478    | ) |   |   | (3,478 | ) |
| Deferred revenue-distribution agreement                       |   |                      | (71,430   | ) |   |   | - |   |
| Deferred gain                                                 |   |                      | (16,048   | ) |   |   | (16,048 | ) |
| Change in operating assets and liabilities:                   |   |                      |      |   |   |   |   |   |
| Accounts receivable                                           |   |                      | 28,671    |   |   |   | 175,790 |   |
| Inventories                                                   |   |                      | (19,934   | ) |   |   | 308,712 |   |
| Prepaid expenses and other current assets                     |   |                      | 32,670    |   |   |   | (104,198 | ) |
| Income taxes receivable                                       |   |                      | 194,539   |   |   |   | 115,063 |   |
| Other assets                                                  |   |                      | 4,456     |   |   |   | - |   |
| Grapes payable                                                |   |                      | (389,233  | ) |   |   | (273,211 | ) |
| Accounts payable                                              |   |                      | 159,253   |   |   |   | 124,509 |   |
| Accrued expenses                                              |   |                      | (74,392   | ) |   |   | (150,136 | ) |
| Net cash from operating activities                            |   |                      | 802,244   |   |   |   | 977,471 |   |
|                                                          |   |                      |      |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES OF CONTINUING OPERATIONS |   |                      |      |   |   |
| Additions to property and equipment                           |   |                      | (565,729  | ) |   |   | (608,969 | ) |
| Payments received on note receivable                          |   |                      | 28,389    |   |   |   | 26,360 |   |
| Net cash from investing activities                            |   |                      | (537,340  | ) |   |   | (582,609 | ) |
|                                                          |   |                      |      |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES OF CONTINUING OPERATIONS |   |                      |      |   |   |
| Payments on long-term debt                                    |   |                      | (82,474   | ) |   |   | (169,254 | ) |
| Borrowings on long-term debt                                  |   |                      | -         |   |   |   | 162,121 |   |
| Payment of debt issuance costs                                |   |                      | -         |   |   |   | (18,524 | ) |
| Repurchase of common stock                                    |   |                      | (248,965  | ) |   |   | - |   |
| Net cash from financing activities                            |   |                      | (331,439  | ) |   |   | (25,657 | ) |
|                                                          |   |                      |      |   |   |   |   |   |
| CASH FLOWS FROM DISCONTINUED OPERATIONS                       |   |                      |      |   |   |   |   |   |
| Net cash from operating activities of discontinued operations |   |                      | 629,489   |   |   |   | (77,963 | ) |
| Net cash from investing activities of discontinued operations |   |                      | -         |   |   |   | (11,339 | ) |
| Net cash from discontinued operations                         |   |                      | 629,489   |   |   |   | (89,302 | ) |
|                                                          |   |                      |      |   |   |   |   |   |
| NET CHANGE IN CASH AND CASH EQUIVALENTS                       |   |                      | 562,954   |   |   |   | 279,903 |   |
|                                                          |   |                      |      |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS, beginning of period                |   |                      | 3,411,292 |   |   |   | 1,518,864 |   |
|                                                          |   |                      |      |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS, end of quarter                     |   | $                         | 3,974,246 |   |   | $ | 1,798,767 |   |

----

----

|                               |   | Three months ended        |    |   | Six months ended          |   |
|------------------------------------|--------|---------------------------|---------|--------|---------------------------|--------|
|                               |   | June 30, 2012             |    |   | June 30, 2012             |   |
|                               |   | Weighted Average Exercise |    |   | Weighted Average Exercise |   |
|                               |   | Shares                    |    |   | Price                     |   |   | Shares |   |   | Price |   |
|                               |   |                      |    |   |                      |   |   |   |   |   |   |   |
| Outstanding at beginning of period |   |                      | 356,200 |   |                      | $      | 3.71 |   |   |   | 356,200 |   |   | $ | 3.71 |   |
| Granted                            |   |                      | -       |   |                      |   | - |   |   |   | - |   |   |   | - |   |
| Exercised                          |   |                      | -       |   |                      |   | - |   |   |   | - |   |   |   | - |   |
| Forfeited                          |   |                      | -       |   |                      |   | - |   |   |   | - |   |   |   | - |   |
|                               |   |                      |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding at end of period       |   |                      | 356,200 |   |                      | $      | 3.71 |   |   |   | 356,200 |   |   | $ | 3.71 |   |

|                                              |    | Three months ended |   |    | Six months ended |
|---------------------------------------------------|---------|--------------------|--------|---------|------------------|
|                                              |    | June 30,           |   |    | June 30,         |
|                                              |    | 2012               |   |    | 2011             |   |   | 2012 |   |   | 2011 |
|                                              |    |               |   |    |             |   |   |   |   |   |   |
| Pretax compensation  expense            |    |               |   |    |             |   |   |   |   |   |   |
|      related to stock options | $  | 4,500              |   | $  | -                |   | $  |  9,802 |   | $  |  - |

|                                                         |   | June 30, 2012 |      |   | December 31, 2011 |   |
|--------------------------------------------------------------|--------|---------------|-----------|--------|-------------------|--------|
|                                                         |   | (unaudited)   |      |   | (audited)         |   |
|                                                         |   |          |      |   |              |   |
| Winemaking and packaging materials                           |   | $             | 255,769   |   |              | $      | 248,350 |   |
| Work-in-progress (costs relating to unbottled wine products) |   |          | 2,495,559 |   |              |   | 3,535,027 |   |
| Finished goods - bottled wine                                |   |          | 5,842,643 |   |              |   | 4,854,170 |   |
| Finished goods - merchandise                                 |   |          | 269,776   |   |              |   | 206,266 |   |
|                                                         |   |          |      |   |              |   |   |   |
| Current inventories                                          |   | $             | 8,863,747 |   |              | $      | 8,843,813 |   |

----

|                                   |   | June 30, 2012 |       |   | December 31, 2011 |   |
|----------------------------------------|--------|---------------|------------|--------|-------------------|--------|
|                                   |   | (unaudited)   |       |   | (audited)         |   |
|                                   |   |          |       |   |              |   |
| Construction in progress               |   | $             | 687,075    |   |              | $      | 333,162 |   |
| Land and improvements                  |   |          | 2,610,374  |   |              |   | 2,610,374 |   |
| Winery building and hospitality center |   |          | 6,771,701  |   |              |   | 6,727,419 |   |
| Equipment                              |   |          | 6,445,649  |   |              |   | 6,285,135 |   |
|                                   |   |          |       |   |              |   |   |   |
|                                   |   | $             | 16,514,799 |   |              | $      | 15,956,090 |   |
|                                   |   |          |       |   |              |   |   |   |
| Accumulated depreciation               |   |          | (9,067,376 | )      |              |   | (8,717,653 | ) |
|                                   |   |          |       |   |              |   |   |   |
|                                   |   | $             | 7,447,423  |   |              | $      | 7,238,437 |   |

----

|                    |    | Three months ended |   |    | Six months ended |
|-------------------------|---------|--------------------|--------|---------|------------------|
|                    |    | June 30,           |   |    | June 30,         |
|                    |    | 2012               |   |    | 2011             |   |   | 2012 |   |   | 2011 |
|                    |    |               |   |    |             |   |   |   |   |   |   |
| Net sales from          |    |               |   |    |             |   |   |   |   |   |   |
| discontinued operations | $  | 93,135             |   | $  | 928,036          |   | $  | 575,242 |   | $  | 1,817,717 |

----

----

----

----

----

----

| ISSUER PURCHASES OF EQUITY SECURITIES |   |                                        |   |   |                                   |   |   |
|---------------------------------------|--------|---------------------------------------------|--------|--------|----------------------------------------|--------|--------|
| Period                                |   | (a)                                         |   |   | (b)                                    |   |   | (c) |   |   | (d) |   |
|                                  |   | Total Number of Shares (or Units) Purchased |   |   | Average Price Paid per Share (or Unit) |   |   | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs |   |   | Maximum Number (or Approximate Dollar Value) of Shares that May Yet be Purchased Under the Plans or Programs |   |
| Month #1                              |   |                                        |   |   |                                   |   |   |   |   |   |   |   |
| April 2012                            |   |                                        | 2,009  |   |                                   | $      | 3.40   |   |   |   | 2,009 |   |   | $ | 216,840 |   |
| Month #2                              |   |                                        |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| May 2012                              |   |                                        | -      |   |                                   | $      | -      |   |   |   | - |   |   | $ | 216,840 |   |
| Month #3                              |   |                                        |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| June 2012                             |   |                                        | 61,034 |   |                                   | $      | 3.49   |   |   |   | 61,034 |   |   | $ | 3,645 |   |
| Total                                 |   |                                        | 63,043 |   |                                   | $      | 3.49   |   |   |   | 63,043 |   |   | $ | 3,645 |   |

| Director            |    | For                                                                                                                   |          | Withheld                                                                                                                                         |          | Broker Non Vote                                                                                             |
|---------------------|--------------|-----------------------------------------------------------------------------------------------------------------------|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|-----------------------------------------------------------------------------------------------------------------------|
| James Bernau        |    |                   2,673,242 |     |                        38,479 |     |                   1,181,676 |
| Craig Smith         |    |                   2,680,289 |     |                        31,432 |     |                   1,181,676 |
| James Ellis         |    |                   2,695,439 |     |                        16,282 |     |                   1,181,676 |
| Sean Cary           |         |                   2,691,818 |     |                        19,903 |     |                   1,181,676 |
| Thomas Brian        |         |                   2,691,989 |     |                        19,732 |     |                   1,181,676 |
| Delna Jones         |         |                   2,677,571 |     |                        34,150 |     |                   1,181,676 |
| Betty O’Brien |         |                   2,694,189 |     |                        17,532 |     |                   1,181,676 |
| Stan Turel          |         |                   2,696,339 |     |                        15,382 |     |                   1,181,676 |

----

|      |         |    |         |    |
|-----------|--------------|---------|--------------|---------|
| For       |         | Against |         | Abstain |
| 3,148,510 |    | 2,321   |    | 19,065  |

|  Exhibit No.  |  Description                                                                                                                                                                                                                                                                                                                                                                             |
|-------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  3.1               | Articles of Incorporation of Willamette Valley Vineyards, Inc. (incorporated by reference from the Company's Regulation A Offering Statement on Form 1-A, File No. 24S-2996)                                                                                                                                                                                                                  |
|                    |                                                                                                                                                                                                                                                                                                                                                                                          |
|  3.2               | Bylaws of Willamette Valley Vineyards, Inc. (incorporated herein by reference to Exhibit 3.5 to the Company’s Form 10-Q for the quarterly period ended June 30, 2008, filed August 14, 2008 File No. 000-21522)                                                                                                                                                                         |
|                    |                                                                                                                                                                                                                                                                                                                                                                                          |
|  3.3               | Articles of Amendment, dated August 22, 2000 (incorporated herein by reference to Exhibit 3.4 to the Company’s Form 10-Q for the quarterly period ended June 30, 2008, filed August 14, 2008, File No. 000-21522)                                                                                                                                                                       |
|                    |                                                                                                                                                                                                                                                                                                                                                                                          |
|  31.1              | Certification of Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 (Filed herewith)                                                                                                                                                                                                                                                 |
|                    |                                                                                                                                                                                                                                                                                                                                                                                          |
|  31.2              | Certification of Controller required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 (Filed herewith)                                                                                                                                                                                                                                                              |
|                    |                                                                                                                                                                                                                                                                                                                                                                                          |
|  32.1              | Certification of James W. Bernau pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Filed herewith)                                                                                                                                                                                                                                     |
|                    |                                                                                                                                                                                                                                                                                                                                                                                          |
|  32.2              | Certification of James Z. Voss pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Filed herewith)                                                                                                                                                                                                                                       |
|                    |                                                                                                                                                                                                                                                                                                                                                                                          |
|  101               | The following financial information from the Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, furnished electronically herewith, and formatted in XBRL (Extensible Business Reporting Language): (i) Balance Sheets, (ii) Statements of Operations; (iii) Statements of Cash Flows; and (iv) Notes to Financial Statements, tagged as blocks of text.** |

----

|                        | WILLAMETTE VALLEY VINEYARDS, INC. |                                                 |
|-----------------------------|-----------------------------------|------------------------------------------------------|
|                        |                              |                                                 |   |
| Date: August 10, 2012  | By:                               | /s/ James W. Bernau                             |   |
|                        |                              | James W. Bernau                                      |   |
|                        |                              | Chief Executive Officer(Principal Executive Officer) |   |
|                        |                              |                                                 |   |

|                  |   |                                                   |   |
|-----------------------|--------|--------------------------------------------------------|--------|
| Date: August 10, 2012 | By:    | /s/ James Z. Voss                                 |   |
|                  |   | James Z. Voss                                          |   |
|                  |   | Controller(Principal Accounting and Financial Officer) |   |
|                  |   |                                                   |   |

----