Exhibit 11
THE CHALONE WINE GROUP, LTD.
Exhibit 11 - Statement re Computation of Earnings Per Share
Three
months
ended
March 31, Year ended December 31,
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1997 1996 1995 1994
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Net (loss) Income ...................................... $ 310,536 $2,339,237 $ 206,607 $ 20,184
Adjustment for interest expense (net of
income tax):
Convertible Debentures:(1)
5% due 1999 ........................................ 106,250 425,000 659,000 727,000
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Adjusted net (loss) income ............................. $ 416,786 $2,764,237 $ 865,607 $ 747,184
Weighted average shares outstanding:
Common shares ........................................ 8,214,151 8,168,627 5,299,766 4,826,094
Common equivalent shares:
Stock options and warrants, net of
treasury stock purchases ......................... 114,863 102,988 -- --
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Weighted average shares outstanding
as adjusted (primary earnings per
share) ........................................... 8,329,014 8,168,627 5,299,766 4,826,094
Contingent issuances:
Convertible Debentures:(1)
5% due 1999: ..................................... 965,099 965,099 967,301 1,997,555
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Weighted average shares outstanding
as adjusted (fully diluted earnings
per share) ....................................... 9,294,113 9,133,726 6,267,067 6,823,649
Net income (loss) per common and
common equivalent share .............................. $ .04 $ .29 $ .04 $ .00
Net income (loss) per common share
assuming full dilution ............................... $ .04 $ .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>