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:

July 28, 2008

SCHEID VINEYARDS INC. REPORTS 1^st QUARTER RESULTS

SALINAS, CA – July 28, 2008 - Scheid Vineyards Inc. announced today its financial results for the first quarter ended May 31, 2008.

Mike Thomsen, Chief Financial Officer, reported, “Losses from operations for the three months ended May 31, 2008 totaled $2.7 million ($2.62 per share). After an income tax adjustment ($0.7 million) and a decrease in the market valuation of an interest rate swap ($0.9 million), the net loss for the period was $1.0 million ($1.00 per share).”

Mr. Thomsen also reported, “Revenues for the period totaled $1.5 million and consisted primarily of sales of bulk wine and fees for the processing and storage of wines for others. These revenues were offset by cost of sales of $1.5 million, selling, general and administrative expenses of $1.8 million, and interest expense in the amount of $0.9 million.”

Mr. Thomsen continued, “The three months ended May 31, 2008 is the first quarterly reporting period since the Company changed its fiscal year end from December 31 to February 28. The change in fiscal year end was made in order to report financial results in a manner more consistent with the Company’s revenue cycle, as sales of bulk wine continue to replace wine grapes in the Company’s sales mix. The first new fiscal year reflecting this change will end February 28, 2009.”

Scheid Vineyards Inc. (www.scheidvineyards.com) operates approximately 5,300 acres of premium wine grape vineyards, primarily in Monterey County, California. The Company’s new, state of the art, winery commenced operations in 2005 and has the capacity to process approximately 30,000 tons of grapes each harvest. The Company’s primary business is producing wine grapes and converting them into high quality bulk wine for sale to large, and some small, California wineries. The Company also produces ultra premium wine under the Scheid Vineyards label, which is sold through the Company’s tasting room, wine club, and Monterey, California 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.

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.

SCHEID VINEYARDS INC. AND SUBSIDIARY

UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS

THREE MONTHS ENDED MAY 31, 2008

(amounts in thousands, except per share data)

REVENUES:
Bulk wine sales ……………………………..………………	$	539
Winery processing and storage revenues …..……………....	653
Vineyard management, services and other fees ……….…...	220
Tasting room revenues …...………….…………..…..….…	132
Total revenues ………………………………..……….…	1,544
COST OF SALES …………………………………..…….…	1,511
GROSS PROFIT …………………………………..………...	33
General and administrative expenses …………...…………..	1,646
Selling expenses ……………………………………...….…	164
Interest expense, net …...…………………………..……....	878
Market adjustment for interest rate swap …………..…...…	(946		)
LOSS BEFORE BENEFIT FROM INCOME TAXES…...	(1,709		)
BENEFIT FROM INCOME TAXES ………………….….	701
NET LOSS ……..……………………………………………	$	(1,008	)
NET LOSS PER SHARE:
BASIC ………………………………………………….…..	$	(1.00	)
DILUTED ……………………………………………….…	$	(1.00	)
WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC ………………………………….…………….…..…	1,013
DILUTED……………………………………………..……	1,013

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