For Further Information:
Scheid Vineyards Inc.
(Nasdaq SCM: SVIN)
305 Hilltown Road
Salinas, CA 93908
(831) 455-9990
www.scheidvineyards.com
CONTACT: Scott
Scheid, President and Chief Executive Officer
Mike
Thomsen, Chief Financial Officer
For Immediate Release:
October 19, 2005
SCHEID VINEYARDS
INC. RECEIVES NOTICE REGARDING NONCOMPLIANCE WITH NASDAQ’S BOARD COMPOSITION
RULES
KEITH KRUM JOINS SCHEID VINEYARDS’ BOARD OF
DIRECTORS;
HEIDI SCHEID RESIGNS FROM THE BOARD OF DIRECTORS
SALINAS, CA – October 19, 2005 - Scheid Vineyards Inc. (Nasdaq SCM: SVIN) announced today it received a Nasdaq
Staff Determination on October 13, 2005 indicating that the Company fails to
comply with Nasdaq’s rules regarding a majority independent board of directors,
nomination of directors, compensation of officers, and audit committee
composition for continued listing as as set
forth in Marketplace Rules 4350(c)(1), 4350(c)(3), 4350(c)(4), and 4350(d)(2),
respectively, and that its securities are,
therefore, subject to delisting from the Nasdaq SmallCap Market. In addition, because
the Company did not comply with these rules at the time it submitted its
Corporate Governance Certificate Form to Nasdaq in August 2004, and failed to
comply with these rules by July 31, 2005, as required for small business
issuers, the Staff considers the certification to be invalid.
In order to comply with Nasdaq’s rules regarding a
majority independent board of directors and the requirement of at least three
independent directors to serve on the Company’s audit committee, To satisfy Nasdaq’s requirement
that the Board consist of a majority of independent directors, the Board took two actions. It appointed
Keith Krum, formerly with Bank of the West, to the Board of Directors and to serve on the Company’s audit committee. It also accepted the resignation of
Heidi Scheid from the Board of Directors. Company also
announced Heidi Scheid resigned from the Board of Directors today. Ms. Scheid has served on the Board since
1997. Ms. Scheid will continue
to serve as Senior Vice President, Treasurer and Secretary of the Company. To fill the vacancy
created by Ms. Scheid’s resignation, the Board has appointed Keith Krum,
formerly with the Bank of the West, to the Company’s Board of Directors. Mr. Krum will also serve on the Company’s
audit committee. Mr. Krum [briefly
describe his bio if you want].
The Company believes that as now
constituted, its Board of Directors complies with Nasdaq’s Marketplace
Rules. If the Company is not able to
resolve these matters with Nasdaq prior to October 20, 2005, the Company
intends to request a hearing before a Nasdaq Listing Qualifications Panel to
review the Staff determination. There
can be no assurance that the panel would grant the Company’s request for continued
listing.
Scheid Vineyards Inc. (www.scheidvineyards.com) is an
independent producer of premium wine grapes and bulk wine. The Company operates approximately 5,700
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 wine. The Company also operates a winery with an
approximately 10,000 ton processing capability in which the Company produces
bulk wine, as well as a small amount of ultra premium wine under its own label.