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.