EXHIBIT 99.1

MGP Ingredients, Inc. Reports Second Quarter 2012 Results

Strong Demand for Beverage Alcohol Drives Distillery Segment Sales

Highlights

ATCHISON, Kan., Aug. 9, 2012 (GLOBE NEWSWIRE) -- MGP Ingredients, Inc. (Nasdaq:MGPI) today reported results for the second quarter ended June 30, 2012. The net loss of $850,000, or $0.05 per diluted share, compared favorably with a net loss of $10.3 million, or $0.61 per diluted share, in the prior year.

Net sales for the second quarter increased 24 percent compared to the same quarter a year ago. The increase was primarily attributable to higher volume and improved pricing in high quality food grade alcohol. The recently acquired Lawrenceburg, Indiana distillery contributed to higher sales of beverage alcohol, along with sales of distillers feed and warehousing revenues. The ingredients segment reported lower sales for the period due to decreased volume partially offset by improved pricing.

Net income for the second quarter improved from a year ago, with a net loss of $850,000 compared with a net loss of $10.3 million. The net loss for the second quarter was driven by the continuing high costs of raw materials and the temporary effects of a planned 1-week shut-down of the Atchison, Kansas, plant for maintenance and capital upgrades. The company also experienced higher personnel costs related to the acquisition of the Lawrenceburg, Indiana distillery in late 2011. The loss during the prior-year period included significant unfavorable changes to cost of sales from open hedge contracts.

"We're making continued progress on growing the top-line," said Tim Newkirk, president and chief executive officer. "Our profitability, on the other hand, continues to lag behind our targets. High corn prices are certainly having an impact in terms of margin compression. However, this is mainly a function of some of our existing supply contracts, most of which are expected to roll off in the second half of the year. That's why we haven't yet been able to fully take advantage of our new sourcing agreements. Fortunately, our supply partner has an extensive global corn origination network and is not solely dependent on local origination for our facilities' corn supply. We also benefit from their much greater buying power. By the fourth quarter, we expect to be back to flat pricing for most of our grain needs, thereby reducing our corn basis risk and its negative impact on distillery margins.

"Performance at our Lawrenceburg, Indiana distillery is coming up to speed now that the facility has been integrated with our SAP platform. Process changes at the plant are expected to result in increased quality and efficiency. We're also seeing greater interest in a broader range of premium beverages as we spend more time with LDI's customer base. Demand remains strong for premium aged bourbon and whiskeys; therefore, we added to our MGP-owned barrel inventory in the second quarter at an investment of approximately $5 million."

Net income for the first six months of 2012 improved to $1,026,000, or $0.06 per diluted share, compared with a net loss of $9.6 million, or $0.57 per diluted share a year ago. Net sales for the 2012 six month period were $171.8 million, an increase of 29 percent on the prior-year period.

Distillery Products Segment Review

Ingredient Solutions Segment Review

Other Segment Review

Newkirk concluded, "We like our long-term positioning. While our quarterly results have yet to show consistency, we're more confident in our ability to compete in an environment of stubbornly high commodity prices. The turnaround in profitability of our ingredients segment is one example of our progress over the past year. The addition of brown goods to our beverage portfolio has enhanced our distillery margins. Other positive factors for the second half of this year include the resetting of our raw material sourcing contracts and the recently-implemented price increases for distillery products. In the meantime, we're focused on keeping customers satisfied and generating more cash from every gallon or pound we process."  

About MGP Ingredients

In business since 1941, MGP Ingredients, Inc. has pioneered food science innovation and the 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, Kansas; Onaga, Kansas; and its newest facility in the adjoining towns of Lawrenceburg and Greendale, Indiana.  Each is dedicated to utilizing the latest technologies to assure the highest quality products and superior customer service. For more information, visit www.mgpingredients.com.

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. Investors should not place undue reliance upon forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements.  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) our ability to close the prospective acquisition of Lawrenceburg Distillers Indiana, LLC and to integrate the acquired operations into our own, (v) the competitive environment and related market conditions, (vi) the ability to effectively pass raw material price increases on to customers, (vii) the ability to effectively operate the Illinois Corn Processing, LLC ("ICP") joint venture, (viii) our ability to maintain compliance with all applicable loan agreement covenants, (ix) our ability to realize operating efficiencies, (x) and actions of governments, (xi) consumer tastes and preferences.   For further information on these and other risks and uncertainties that may affect the Company's business, see Item 1A. Risk Factors in Part II of the Company's Transition Report on Form 10-K for the six-month period ended December 31, 2011.

MGP INGREDIENTS, INC.
 
CONSOLIDATED STATEMENTS OF INCOME
(unaudited) Quarter Ended Year to Date Ended
(Dollars in thousands, except per share) June 30, 2012 June 30, 2011 June 30, 2012 June 30, 2011
Gross Sales  $ 87,263  $ 68,882  $ 175,693  $ 133,093
Less Excise Taxes  1,729  84  3,815  107
Net Sales  $ 85,534  $ 68,798  $ 171,878  $ 132,986
Cost of Sales  79,618  71,586  160,383  129,255
Gross Profit  $ 5,916  $ (2,788)  $ 11,495  $ 3,731
         
Selling, General and Administrative Expenses  $ 6,285  $ 4,880  $ 14,033  $ 10,570
Other operating costs  176  425  250  425
Income (loss) from Operations  $ (545)  $ (8,093)  $ (2,788)  $ (7,264)
         
Gain on Joint Venture Interest  --   --   4,055  -- 
Other Income, Net  2  2  4  5
Interest Expense  (232)  --   (487)  (92)
Equity in earnings of joint ventures  (143)  (2,296)  294  (2,172)
Income Before Income Taxes  $ (918)  $ (10,387)  $ 1,078  $ (9,523)
         
Provision for Income Taxes  (68)  (129)  52  34
Net Income  $ (850)  $ (10,258)  $ 1,026  $ (9,557)
         
Other Comprehensive Income  12  2,971  185  2,988
Comprehensive Income  $ (838)  $ (7,287)  $ 1,211  $ (6,569)
         
Basic Earnings Per Common Share  $ (0.05)  $ (0.61)  $ 0.06  $ (0.57)
Diluted Earnings Per Common Share  $ (0.05)  $ (0.61)  $ 0.06  $ (0.57)
         
Weighted average shares outstanding – Basic 16,916,304 16,752,771 16,916,304 16,675,254
Weighted average shares outstanding – Diluted 16,916,304 16,752,771 16,918,266 16,675,254
 
CONSOLIDATED BALANCE SHEET (UNAUDITED)
(Dollars in thousands) June 30, 2012 Dec. 31, 2011 (Dollars in thousands) June 30, 2012 Dec. 31, 2011
ASSETS     LIABILITIES AND STOCKHOLDERS' EQUITY    
Current Assets:     Current Liabilities:    
Cash and cash equivalents $ --   $ 383 Current maturities on long-term debt  $ 1,697  $ 1,670
Restricted cash 2,757 7,605 Revolving credit facility 23,380 21,142
Receivables 35,364 27,804 Accounts payable 22,423 22,704
Inventory 36,525 31,082 Accounts payable to affiliate, net 4,611 6,167
Prepaid expenses 1,087 958 Accrued expenses 5,165 4,023
Deferred income taxes 5,286 6,056 Derivative Liabilities 1,764 3,465
Refundable income taxes 514 566 Total Current Liabilities  $ 59,040  $ 59,171
Derivative Assets -- 1,304 Other Liabilities:    
Assets held for sale -- 2,300 Long-term debt, less current maturities 5,996 6,852
Total Current Assets  $ 81,533  $ 78,058 Deferred credit 3,896 4,195
      Accrued retirement, health and life 6,517 6,309
      insurance benefits    
      Other non-current liabilities 1,715 2,144
Property and equipment, at cost  190,367  185,386 Noncurrent deferred income taxes 5,286 6,056
Less accumulated depreciation  (113,952)  (108,307) Total Other Liabilities  $ 23,410 $ 25,556
Net property, plant and     Total Liabilities $ 82,450 $ 84,727 
equipment  $ 76,415  $ 77,079      
Investment in unconsolidated subsidiary 7,889 12,147 Stockholders' Equity 85,062 84,430
Other non-current assets 1,675 1,873 TOTAL LIABILITIES AND    
TOTAL ASSETS  $ 167,512  $ 169,157 STOCKHOLDERS' EQUITY  $ 167,512  $ 169,157
           
Capital Structure          
Net Investment in:          
Cash and cash equivalents $ --   $ 383      
      Financed By:    
Working capital $ 22,493 $ 18,887 Long-term debt* $ 5,996  $ 6,852
Property, plant and equipment 76,415 77,079 Deferred liabilities 17,414 18,704
Other non-current assets 9,564 14,020 Stockholders' equity 85,062 84,430
Total $ 108,472 $ 109,986 Total $ 108,472  $ 109,986
           
* Excludes short-term portion. Short-term portion is included within working capital.
CONTACT: Marta Myers, 913-367-1480