For Further Information:

Scheid Vineyards Inc. (Nasdaq: SVIN)

305 Hilltown Road

Salinas, CA 93908

(831) 455-9990

CONTACT: Scott D. Scheid, President & CEO

For Immediate Release:

January 24, 2005

SCHEID VINEYARDS ANNOUNCES NEW WINERY FACILTY

SALINAS, CA – January 24, 2005 - Scheid Vineyards Inc. (Nasdaq: SVIN) announced today that its Board of Directors has approved the construction of a new winery facility to be located at the Company’s vineyard headquarters just off of U. S. Highway 101 on Hobson Avenue near Greenfield, California.

Scott D. Scheid, the Company’s President and CEO, stated, “We are pleased to announce a decision to build a state-of-the-art winery catering to premium wine customers in the heart of the Monterey County wine grape growing region. The completion of the first phase of the Scheid Winery will result in the capacity to crush approximately 10,000 tons of grapes and will require an estimated investment of $18 to $20 million. The Scheid Winery will operate both as a custom crush facility for present and future winery customers, as well as a wine making facility for our own grape production. We anticipate the new facility will be in partial operation by the harvest season in the fall of 2005.”

Mr. Scheid continued, “A second phase of winery construction is planned over the next three to five years, bringing total processing capacity to approximately 25,000 tons. The zoning administrator of Monterey County has approved a use permit for the project, however, building and other permits are necessary in order for construction to begin. We anticipate that we will be able to commence this project in February.”

In 2004, Scheid Vineyards processed over 6,000 tons of its own grapes into wine using third party winery facilities, both within and outside of Monterey County. Mr. Scheid commented, “A large portion of the wine grapes grown in Monterey County are shipped out of the area for processing, and we see a clear need for additional local wine making capability. Further, the Scheid Winery’s location on U.S. Highway 101, just south of Greenfield, is an accessible and efficient location for processing wine grapes grown in the Central Coast region.”

Scheid Vineyards Inc. ( www.scheidvineyards.com) is an independent producer of premium wine grapes and operates approximately 5,600 acres of vineyards, primarily in Monterey County, California. The Company sells most of its grape production under short and long-term grape and bulk wine contracts to wineries producing high quality table wines, and the Company also produces a small amount of ultra premium wine under its own label.

Note: This press release contains forward-looking statements concerning the Company’s intention to build a winery. These forward-looking statements can generally be identified as such because the context of the statement will include such words as “estimated” “anticipates” or words of similar import. Such forward looking statements are subject to certain factors, risks and uncertainties which could cause actual results to differ materially from those currently anticipated. Such factors, risks and uncertainties include, but are not limited to, (i) final approval and permits for the project by the County of Monterey and other governmental agencies, (ii) delays in construction due to weather, unavailability of materials, equipment, or labor, or other reasons so that that the winery is not in production by the harvest of 2005, (iii) unanticipated cost overruns, and (iv) financing of the project. The forward-looking statements made herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.