THE CHALONE WINE GROUP, LTD. Exhibit 11 - Statement re Computation of Earnings Per Share Year ended December 31, -------------------------------------------------------- 1995 1994 1993 ---------------- ---------------- ---------------- Net (loss) income......................... $ 206,607 $ 20,184 $ (690,779) Adjustment for interest expense (net of income tax): Convertible Debentures: 1 5% due 1999........................ 659,000 727,000 727,000 ---------------- ---------------- ---------------- Adjusted net (loss) income................ $ 865,607 $ 747,184 $ 36,221 Weighted average shares outstanding: Common shares......................... 5,299,766 4,826,094 4,383,209 Common equivalent shares: Stock options and warrants, net of treasury stock purchases........ -- -- -- ---------------- ---------------- ---------------- Weighted average shares outstanding as adjusted (primary earnings per share)...................... 5,299,766 4,826,094 4,383,209 Contingent issuances: Convertible Debentures: 1 5% due 1999 .................... 967,301 1,997,555 1,997,555 ---------------- ---------------- ---------------- Weighted average shares outstanding as adjusted (fully diluted earnings per share)............. 6,267,067 6,823,649 6,380,764 Net income (loss) per common and common equivalent share...................... $ .04 $ .00 $ (.16) Net income (loss) per common share assuming full dilution................ $ .14 $ .11 $ .01 <FN> - -------- 1 This calculation is submitted in accordance with Securities Exchange Act of 1934 Release No. 9083 although it is contrary to paragraph 40 of APB Opinion No. 15 because it produces an anti-dilutive result. </FN>