Geerlings & Wade, Inc. (Nasdaq: GEER), the nation's largest direct marketer and Internet retailer of premium wines and wine-related products to consumers, today reported financial results for the second quarter of 2000.

Net sales for the second quarter ended June 30, 2000 were $8.9 million, an increase of $.33 million, or 3.8%, over net sales of $8.6 million for the comparable quarter in 1999. Net loss for the second quarter ended June 30, 2000 was $357,000, or $0.09 per share, compared to net income of $217,000, or $0.06 per share, for the second quarter of 1999.

In the second quarter, Geerlings & Wade had e-commerce sales of $1,531,000, an increase of 295% over e-commerce sales of $388,000 during the second quarter of 1999. Sales from acquisition mailings in the second quarter of 2000 increased $390,000 as compared to second quarter 1999 due to improved response rates to mailings and because of the timing of certain mailings. Certain expenses increased during the second quarter of 2000 over 1999 causing the $731,000 decrease in earnings. The two most significant increases included a charge of $305,000 related to certain severance payments and increased delivery costs of $231,000 related to changing delivery companies in the fourth quarter of 1999.

David Pearce, President of Geerlings & Wade, Inc., commented, "I am pleased with our second quarter results. Sales increased, and, had it not been for severance payments and certain legal expenses, we would have been profitable for the quarter. We intend to continue this positive trend by increasing sales over 1999 and making a profit in the second half of 2000. Internet sales continue to grow rapidly representing 17% of overall sales during this past quarter. We continue to encourage existing customers to migrate to the online channel. Approximately 21% of our new customers were acquired through the online channel, www.geerwade.com, in the past quarter."

Mr. Pearce added further, "With our experienced management team, we plan to prepare the company for higher sales growth rates in 2001 and beyond. We are enhancing and refining our marketing programs, improving our customer service and broadening our product offerings. We are also reintroducing marketing programs that offer higher-priced and more esoteric wines to customers seeking these selections. This should help us expand further into the premium segments of the market, retain customers and garner a greater share of their wine purchases. Furthermore, we are enhancing the integration of all marketing communication channels to present a consistent image and message to the customers. We are very encouraged by our recent efforts and about our future as a dominant e-tailer and direct marketer of wines."

This report contains forward-looking statements about the company's business and operations and the company's future plans and objectives. Forward-looking statements are subject to risks and uncertainties that could cause the actual results to vary materially. These risks are discussed in the company's annual report on Form 10-K filed with the U.S. Securities and Exchange Commission.

Geerlings & Wade, founded in 1986, is America's leading direct marketer of fine wine and wine accessories with retail locations in 16 states, home and office delivery to 30 states, and a devoted following of more than 145,000 regular customers and wine club members. The Canton, MA-based company has developed a unique, streamlined purchasing system that allows it to source wines directly from the world's greatest wineries. G&W has cultivated relationships with hundreds of renowned wineries and negotiants in France, Italy, Australia, Chile and California. Consumers can contact Geerlings & Wade at 1-800-782-9463 or on the World Wide Web at http://www.geerwade.com.


GEERLINGS & WADE, INC.
BALANCE SHEETS
(Unaudited)
December 31, June 30,
1999 2000
ASSETS

CURRENT ASSETS:
Cash and cash equivalents $2,624,990 $111,641
Accounts receivable 1,395,305 1,182,613
Inventory 9,481,779 12,818,324
Prepaid mailing costs 899,400 240,557
Prepaid expenses and other assets 1,265,916 983,791
Deferred income taxes, net 229,139 229,139

Total Current Assets 15,896,529 15,566,065

PROPERTY AND EQUIPMENT, AT COST 2,442,285 2,322,817
Less--Accumulated Depreciation 1,326,174 1,414,852
1,116,111 907,965

Deferred Income Taxes, net 352,408 352,408
Other Assets 390,411 371,105

$17,755,459 $17,197,543


LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
Line of credit $--- $2,000,000
Accounts payable 3,354,972 2,978,425
Current portion of deferred revenue 1,171,406 1,125,810
Accrued expenses 1,316,166 1,125,603

Total Current Liabilities 5,842,544 7,229,838

Deferred Revenue, less current revenue 436,206 478,710
Purchase Price Advance from Liquid Holdings 1,250,0000 ---

STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value -
Authorized-1,000,000 shares
Outstanding-none
Common stock, $.01 par value-
Authorized-10,000,000 shares-
Issued and outstanding-3,849,071 and
3,855,940 shares in 1999 and 2000,
respectively 38,491 38,559
Additional paid-in capital 10,075,279 10,107,108
Retained earnings (deficit) 112,939 (656,672)

Total Stockholders' Equity 10,226,709 9,488,995

$17,755,459 $17,197,543


GEERLINGS & WADE, INC.
STATEMENTS OF OPERATIONS
(Unaudited)

Quarter Ended Six Months Ended
June 30, June 30, June 30, June 30,
1999 2000 1999 2000

Sales $8,559,354 $8,893,487 $17,089,277 $17,045,218
Cost of Sales 4,403,731 4,589,481 8,831,631 8,711,535
Gross Profit 4,155,623 4,304,006 8,257,646 8,333,683
Selling, general
and administrative
expenses 3,793,530 4,620,722 8,397,289 10,202,018
Merger related
expenses --- --- --- 48,981
Income (loss) from
operations 362,093 (316,716) (139,643) (1,917,316)
Loss on disposal
of fixed asset --- --- --- (68,886)
Purchase price
advance from
Liquid Holdings --- --- --- 1,250,000
Interest income 11,755 159 26,765 6,814
Interest expense --- (40,222) --- (40,222)
Income (loss)
before income taxes 373,848 (356,779) (112,878) (769,610)
Provision for
income taxes 157,300 --- (47,100) ---
Net income (loss) $216,548 $(356,779) $(65,778) $(769,610)
Net income per share

Basic $0.06 $(0.09) $(0.02) $(0.20)
Diluted $0.06 $(0.09) $(0.02) $(0.20)
Weighted average common
shares and common
equivalents outstanding

Basic 3,846,623 3,855,590 3,837,352 3,854,019
Diluted 3,922,428 3,855,590 3,837,352 3,854,019