EXHIBIT 11
THE CHALONE WINE GROUP, LTD.
Exhibit 11 - Statement re Computation of Earnings Per Share
Year ended December 31,
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1996 1995 1994
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Net (loss) income ................................................ $2,339,237 $ 206,607 $ 20,184
Adjustment for interest expense (net of
income tax):
Convertible Debentures: (1)
5% due 1999 ............................................... 425,000 659,000 727,000
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Adjusted net (loss) income ....................................... $2,764,237 $ 865,607 $ 747,184
Weighted average shares outstanding:
Common shares ................................................ 8,168,627 5,299,766 4,826,094
Common equivalent shares:
Stock options and warrants, net of
treasury stock purchases ............................... -- -- --
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Weighted average shares outstanding
as adjusted (primary earnings
per share) ............................................. 8,168,627 5,299,766 4,826,094
Contingent issuances:
Convertible Debentures: (1)
5% due 1999 ............................................ 965,099 967,301 1,997,555
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Weighted average shares outstanding
as adjusted (fully diluted
earnings per share) .................................... 9,133,726 6,267,067 6,823,649
Net income (loss) per common and common
equivalent share ............................................. $ .29 $ .04 $ .00
Net income (loss) per common share
assuming full dilution ....................................... $ .30 $ .14 $ .11
<FN>
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(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>