For Further Information:

 

Scheid Vineyards Inc.

305 Hilltown Road

Salinas, CA 93908

(831) 455-9990

 

CONTACT:    Scott Scheid, President and CEO

Mike Thomsen, Chief Financial Officer

 

 

For Immediate Release:

August 14, 2007

 

 

SCHEID VINEYARDS INC. REPORTS 2nd QUARTER RESULTS

 

SALINAS, CA – August 14, 2007 - Scheid Vineyards Inc. announced today its financial results for the second quarter ended June 30, 2007.

 

Financial Results

 

Mike Thomsen, Chief Financial Officer, reports, “Revenues for the six months ended June 30, 2007 increased to $14.5 million from $8.5 million for the same period in 2006, an increase of 71%.  This increase was primarily due to increased sales of bulk wine.  However, gross profit for the six months ended June 30, 2007 totaled $3.5 million, as compared to $3.2 million in the 2006 period for an increase of only 9%.  Due to record level yields during the 2005 harvest, which resulted in lower bulk wine production costs, margins were higher in 2006 (when most of this wine was sold) than in 2007 when primarily 2006 bulk wine was sold.”

 

Mr. Thomsen continued, “Losses from operations for the six months ended June 30, 2007 totaled $1.0 million ($0.98 per share), compared to $1.5 million ($1.47 per share) for the same period in 2006.  Early in 2007, the Company sold a 360-acre vineyard, resulting in a one-time gain of $4.2 million.  After reflecting the gain on the vineyard sale and taxes on the gain, net income for the six months ended June 30, 2007 was $1.7 million ($1.68 per share), compared to a net loss of $0.9 million ($0.91 per share) in 2006.”

 

 2007 Harvest and Winery Construction

 

            Commenting on the outlook for the upcoming 2007 harvest, Scott Scheid, President and Chief Executive Officer, stated, “The 2007 growing season has been characterized by a dry and cool spring followed by a mild early summer.  The 2007 harvest is expected to begin in mid-August in the Company’s southernmost vineyards, and, weather permitting, the harvest will be in full swing in early September.  This timing is normal for wine grape vineyards in the Central Coast.” 

 

Mr. Scheid added, “Construction of the second phase of the Company’s winery facility will be completed in time for the 2007 harvest.  This expansion will increase capacity from a current 18,000 tons of processing capability to approximately 30,000 tons.”

 

 

About Scheid Vineyards Inc.

 

Scheid Vineyards Inc. (www.scheidvineyards.com) operates approximately 5,300 acres of premium wine grape vineyards, primarily in Monterey County, California. The Company is in the business of selling grapes and bulk wine to wineries producing high quality table wine.  The Company also operates a winery that currently has approximately 18,000 tons of annual processing capability, an amount that will increase to approximately 30,000 tons upon completion of ongoing construction, in which it crushes grapes for its own account, as well as for outside wineries.  The Company also produces a small amount of ultra premium wine under the Scheid Vineyards label, which is sold through the Company’s tasting room, wine club, and local-area retailers.  The Class A Common Stock of Scheid Vineyards is traded on the Pink Sheets Electric Quotation Service under the stock symbol SVIN.  The “Pink Sheets” is a centralized quotation service that collects and publishes market maker quotes in real time, primarily through its website, www.pinksheets.com.

 

Forward Looking Statements

 

This release contains forward-looking statements as well as historical information. Statements of goals and strategies and words such as “plan”, “believe”, “anticipate”, “expect”, “objectives”, “forecast”, and “predict” and other similar words are intended to identify forward-looking statements. These forward looking statements are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, and involve risks, uncertainties and other factors that may cause the Company’s actual results, performance, or financial condition to be materially different from any results, performance, or financial condition suggested by the statements in this release.