Marina del Rey, CA - February 24, 1999 - Scheid Vineyards Inc. (NASDAQ-NMS: SVIN) today reported its results for the year ended December 31, 1998.

As expected and previously announced, due to the short crop, 1998 operating results were down from the record high crop year of 1997. Revenues decreased 12% to $17.5 million from $19.9 million in 1997. Net income decreased to $3.6 million, or $0.55 per share, for 1998 compared to pro forma net income of $5.2 million, or $0.98 per share, for 1997. Weighted average shares outstanding were 6.6 million in 1998 and 5.3 million in 1997.

Alfred G. Scheid, President and Chief Executive Officer, said, "1998 was a difficult farming year. Weather problems caused a reduction in tonnage produced and an increase in farming expenses. For its own account, the Company harvested about 10,800 tons in 1998, compared to 15,600 tons in 1997, a decrease of about 30%. This decrease was partially offset by sales of bulk wine and an average 12% increase in the grape prices we received." Mr. Scheid added, "While we are disappointed with our 1998 operating results, we are pleased that we were still able to achieve a 21% after-tax profit margin."

The Company also announced that the Preliminary Grape Crush Report covering the 1998 harvest shows that most of the wine grape prices for varieties it produces were flat to moderately increased from prices reported for the same varieties in 1997. The California Department of Food and Agriculture publishes the Preliminary Grape Crush Report on February 10 and the Final Grape Crush Report on March 10 each year. This report shows prices paid during the previous year’s harvest for grapes purchased for wine, concentrate, juice, vinegar and beverage brandy by California processors.

Heidi M. Scheid, Chief Financial Officer, stated, "Approximately 90% of the grapes we produce each year are sold under contracts which set prices based on the previous year’s reported prices. The Preliminary Grape Crush Report shows that the prices we will receive in the 1999 harvest will be flat to moderately increased from 1998." Although historically there have not been significant differences in the pricing data reported in the Preliminary and the Final Grape Crush Reports, it is possible that there may be some adjustments to the Company’s expected 1999 grape prices when the Final Report is published on March 10.

Scheid Vineyards Inc. is a leading independent producer of premium wine grapes and operates approximately 6,000 acres of vineyards, primarily in Monterey County, California. The Company sells most of its grape production under long-term contracts to wineries producing primarily premium quality table wines, and the Company also produces a small amount of ultra premium wine under its own labels.

¹ There is no difference between basic and diluted earnings per share.