EXHIBIT 99.1

MGP Ingredients, Inc. Announces FY 2011 Fourth Quarter Results

Highlights

ATCHISON, Kan., Sept. 2, 2011 (GLOBE NEWSWIRE) -- MGP Ingredients, Inc. (Nasdaq:MGPI) today reported a net loss of $10,258,000, or $0.58 in dilutedloss per share, for the fiscal 2011 fourth quarter, which ended June 30, 2011. This compares with net income of $2,476,000, or $0.14 in diluted earnings per share, for the fourth quarter of fiscal 2010.  Loss from operations for the fourth quarter of fiscal 2011 was $8,093,000 compared with income from operations of $2,736,000 a year ago.  This year's fourth quarter results reflected an unfavorable mark-to-market valuation of approximately $5.5 million due to extreme corn price volatility. Total sales in the fourth quarter of fiscal 2011 were $68,798,000, a 27 percent increase above sales of $54,359,000 for the same period one year ago. The increase was principally due to higher sales of food grade alcohol.   

"At the same time that we experienced unrealized non-cash hedging losses, there was a lag in the adjustment of our alcohol selling prices with higher corn costs, pressuring our gross margins," said Tim Newkirk, president and chief executive officer.   "To address margin issues, we have adjusted pricing to be more aligned with current input costs. As our new pricing becomes effective and production levels at both our Atchison plant and our distillery joint venture, Illinois Corn Processing, LLC (ICP), revert toward their rated capacities, we expect improved results in the first quarter of our new fiscal period. We have also adjusted our hedging program in an effort to address volatility in corn prices. In addition, we have been working for the past several months to complete the process for adopting hedge accounting. The change to hedge accounting was initiated July 1, and the impact of unrealized gains and losses from our open derivative contracts on our profit and loss statement is expected to wind down during our new fiscal period."

For the 12 months of fiscal 2011, the company had a net loss of $1,313,000, or $0.07 in diluted loss per share. This compares with net income of $8,738,000, or $0.51 in diluted earnings per share, for all 12 months of the prior year, which included a $2.3 million loss on the formation of the company's distillery joint venture, ICP, and a $4.8 million tax refund benefit.  Income from operations for the 12 months of fiscal 2011 decreased to $645,000 from $7,255,000 for fiscal 2010. Total sales for all 12 months of fiscal 2011 were $247,915,000, a 23 percent increase above sales of $201,971,000 in the prior fiscal year. 

 "In alignment with our strategic plans, we are making real progress in improving the execution of our day-to-day operations," Newkirk said. "Examples include new outsourcing agreements for truck and railcar transportation. Internally, we have expanded our management team with industry veterans in key areas of product development and customer account management. These people have hit the ground running.  Additionally, we are seeing growing successes with our ingredient solutions being formulated into key customers' new or enhanced consumer packaged products. As a result, and also due to our strategic focus on high quality food grade alcohol, we are continuing to grow a higher value sales mix of products."

Newkirk added, "The distillery products segment continues to see strong demand for high quality food grade alcohol.  Production rates at ICP have returned to higher levels since experiencing a two-week shutdown for major mechanical and maintenance work in the fourth quarter. As a result, and combined with new contract pricing that is in place, we anticipate a growing contribution from our distillery segment in the coming quarters."

Distillery Products Segment Review

Ingredient Solutions Segment Review

Other Segment Review

Priorities Going Forward

Newkirk said, "Our number one focus is on driving sales growth and sustaining higher profitability. For instance, we installed new sales leadership this past year in our operating segments and the early results are promising. More aggressive efforts in each of our specialty ingredients platforms have produced significant new and follow-on orders. On the distillery side, we are pursuing new business in premium beverage alcohol, both in terms of market share and new product categories. Our highest priority is to build out and strengthen our business foundation. To take a more strategic 'seat at the table' MGPI is dedicated to providing a seamless fit with our packaged goods customers in the areas of innovation, quality, value and reliability.

 "The early evidence shows that we are on the right track. Along with a stronger management team, we continue to put in place systems to improve customer interaction, manage our margins on materials, and reduce commodity volatility with hedging programs and flexible contracting agreements. At the same time, our balance sheet remains strong. In conclusion, we're anticipating a solid start to the new fiscal period."                                              

About MGP Ingredients

In business since 1941, MGP Ingredients, Inc. is a recognized pioneer in the development and production of value–added, grain-based starches, proteins and food grade alcohol products for the branded packaged goods industry. The company has facilities in Atchison, Kan., and Onaga, Kan. that are equipped with the latest technologies to assure high quality products and to maintain efficient production and service capabilities.

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking statements as well as historical information. Forward-looking statements are usually identified by or are associated with such words as "intend," "plan", "believe," "estimate," "expect," "anticipate," "hopeful," "should," "may," "will", "could", "encouraged", "opportunities", "potential" and/or the negatives of these terms or variations of them or similar terminology. They reflect management's current beliefs and estimates of future economic circumstances, industry conditions, Company performance and financial results and are not guarantees of future performance. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Important factors that could cause actual results to differ materially from our expectations include, among others: (i) disruptions in operations at our Atchison facility, (ii) the availability and cost of grain and fluctuations in energy costs, (iii) the effectiveness of our hedging strategy, (iv) the competitive environment and related market conditions, (v) the ability to effectively pass raw material price increases on to customers, (vi) the ability to effectively operate the Illinois Corn Processing, LLC ("ICP") joint venture, (vii) our ability to maintain compliance with all applicable loan agreement covenants, (viii) our ability to realize operating efficiencies, (ix) actions of governments, and (x) the impact of weak and/or volatile U.S. and global economic conditions.    For further information on these and other risks and uncertainties that may affect the company's business, see Item 1A. Risk Factors in the company's Annual Report on Form 10-K for the fiscal year ended June 30, 2011.

MGP INGREDIENTS, INC.          
           
CONSOLIDATED STATEMENTS OF INCOME  
(unaudited)  Quarter Ended  Year to Date Ended  
(Dollars in thousands, except per share) June 30, 2011 June 30, 2010 June 30, 2011 June 30, 2010  
Net Sales  $ 68,798  $ 54,359  $ 247,915  $ 201,971  
Cost of Sales 71,586 47,129 225,038 171,427  
Gross Profit (Loss)  $ (2,788)  $ 7,230  $ 22,877  $ 30,544  
           
Selling, General and Administrative Expenses 4,880 6,033 21,157 20,708  
Other operating costs 176 245 504 2,018  
(Loss)Gain on sale of assets  --  (1,031) 322 (1,731)  
Loss on joint venture formation --- (753) -- 2,294  
Other restructuring costs 249 -- 249 --  
Income (Loss) from Operations  $ (8,093)  $ 2,736  $ 645  $ 7,255  
           
Other Income, Net 2 621 8 645  
Interest Expense -- (151) (358) (1,757)  
Equity in loss of joint ventures (2,296) (734) (1,540) (2,173)  
Income (Loss) Before Income Taxes  $ (10,387)  $ 2,472  $ (1,245)  $ 3,970  
           
Provision(Benefit) for Income Taxes (129) (4) 68 (4,768)  
Net Income (Loss)  $ (10,258)  $ 2,476  $ (1,313)  $ 8,738  
           
Other Comprehensive Income(Loss), net of tax 2,970 (515) 2,812 (516)  
Comprehensive Income  $ (7,288)  $ 1,961  $ 1,499  $ 8,222  
           
           
           
Basic Earnings (Loss) Per Common Share  $ (0.58)  $ 0.15  $ (0.07)  $ 0.52  
Diluted Earnings (Loss) Per Common Share  $ (0.58)  $ 0.14  $ (0.07)  $ 0.51  
           
Weighted average shares outstanding – Basic 16,752,771 16,673,668 16,725,756 16,655,203  
Weighted average shares outstanding – Diluted 16,752,771 17,135,950 16,725,756 17,082,123  
           
CONSOLIDATED BALANCE SHEET (uNAUDITED)
(Dollars in thousands) June 30, 2011 June 30, 2010 (Dollars in thousands) June 30, 2011 June 30, 2010
ASSETS     LIABILITIES AND STOCKHOLDERS' EQUITY    
Current Assets:     Current Liabilities:    
Cash and cash equivalents  $ 7,603  $ 6,369 Current maturities of long-term debt   $ 1,705  $ 689
Restricted cash 1,028 971 Revolving credit facility 4,658 --
Receivables 27,844 17,674 Accounts payable 18,052 10,341
Inventory 14,825 14,524 Accounts payable to affiliate, net 6,166 4,951
Prepaid expenses 1,201 1,517 Accrued expenses 4,399 7,510
Deposits 595 733 Total Current Liabilities 34,980 23,491
Deferred income taxes 3,740 6,267 Other Liabilities:    
Refundable income taxes 525 578 Long-term debt, less current maturities 7,702 2,082
Total Current Assets  $ 57,361  $ 48,633 Deferred credit   $ 4,498  $ 5,379
      Accrued retirement health and life
insurance benefits
6,498 8,170
Property and equipment, At Cost 165,365 165,599 Other non-current liabilities 1,015 2,964
Less accumulated depreciation (102,115) (107,994) Deferred income taxes 3,740 6,267
Net property, plant and equipment  $ 63,250  $ 57,605 Total Liabilities   $ 58,433  $ 48,353
Investment in joint ventures 12,575 14,266 Stockholders' Equity 75,198 72,784
Other assets 445 633      
TOTAL ASSETS  $ 133,631  $ 121,137 TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY 
 $ 133,631  $ 121,137
           
Capital Structure          
Net Investment in:     Financed By:    
Cash and cash equivalents  $ 7,603  $ 6,369      
Working capital 22,381 25,142 Long-term debt*  $ 7,702  $ 2,082
Property, plant and equipment 63,250 57,605 Deferred liabilities 15,751 22,780
Other non-current assets 13,020 14,899 Stockholders' equity 75,198 72,784
Total  $ 98,651  $ 97,646 Total   $ 98,651  $ 97,646
           
*Excludes short-term portion. Short-term portion is included within working capital.
CONTACT: Steve Pickman
         913-367-1480