Marina del Rey, CA - September 27, 1999 - Scheid Vineyards Inc. (Nasdaq: SVIN) has just completed the planting of a new, 750-acre vineyard that the Company anticipates will be a flagship operation for this grower of premium wine grapes.

Located in the heart of the Salinas Valley, Mesa del Rio Vineyard is part of Scheid’s 6,000-acre Monterey County vineyard operations. The addition of the Mesa del Rio site was accomplished in late 1998 and preparation for planting commenced immediately.

Scott Scheid, Chief Operating Officer of the Company, said, "We pursued this site because of its ideal location. Located just a mile from our vineyard headquarters, it is in an area characterized by warm days, cool nights and afternoon breezes - essential elements in producing high quality premium wine grapes." Scheid further stated that the site is well-suited to varieties such as Chardonnay, Pinot Noir and Syrah, all of which are experiencing high demand.

The Salinas Valley is an extremely fertile area long farmed in row crops as well as wine grapes. Because the valley opens onto Monterey Bay, it receives fog and cool winds, an ideal circumstance for growing high quality Chardonnay and Pinot Noir.

Said Scheid, "This natural cooling effect slows photosynthesis and causes a unique lengthening of the growing season. The grapes are able to develop sugar while retaining the proper amount of acidity. All in all, the location of Mesa del Rio Vineyard presents

what we consider ideal conditions for the development of premium wine grapes with concentrated fruit flavors."

Monterey County’s potential as a competitive, premium wine-producing region was first recognized in the 1960s, when Professor A.J. Winkler, a viticultural authority from the University of California at Davis, published a report which classified grape growing districts by climate. In that report, Monterey County was classified as Region I and Region II, comparable with the famed Napa and Sonoma regions of northern California and the Burgundy and Bordeaux regions of France. Scheid Vineyards developed over 2,000 acres of vineyards in the area in 1972 through 1974 and was among the early pioneers promoting Monterey County as a high quality grape growing region.

Monterey County’s vineyard acreage grew at a steady but moderate pace until the early 1990s, when consumer demand for premium wine began to surge. The County now has approximately 40,000 acres of planted vineyards, a 30 percent increase in acreage in just six years.

According to wine industry experts Gomberg, Fredrikson & Associates, the premium wine surge began in earnest in 1990. On a per capita basis, retail expenditures of California table wine doubled from 1990 to 1998, from $17.91 to $36.01. During this same period, per capita retail expenditures for the premium segment increased 157 percent, from $10.99 to $28.29.

The growth in the premium segment signals a shift in consumer preferences from lower priced "jug" or generic wines to premium varietal wines. Overall, California table wine revenues have increased from $2.2 billion in 1990 to $5.1 billion in 1998, an increase of 132 percent, while the premium segment has grown from $1.4 billion to $4.1 billion during the same time period, an increase of 193 percent. In other words, the premium segment now accounts for approximately 80 percent of total California table wine revenues.

"This increasing consumer demand for premium wines, coupled with a recognition that Monterey County can produce excellent premium wine grapes, has not gone unnoticed by established wineries," noted Scheid. "Add the fact that there’s little undeveloped vineyard land left in the northern California wine country, Monterey County could likely emerge as the next Napa Valley."

Note: This press release contains forward-looking statements, such as those concerning the Company’s expectations for the performance of the Mesa del Rio Vineyard, the future of the Monterey County wine grape business generally and consumer wine preferences and trends. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by these forward-looking statements. For further details and a discussion of the risks and uncertainties that may affect the Company, please see the Company’s disclosures in its publicly available filings with the Securities and Exchange Commission, including registration statements and periodic reports. In particular, attention is drawn to the cautionary statements included under "Business - Cautionary Information Regarding Forward-Looking Statements" in the Company’s annual report on Form 10-KSB for the fiscal year ended December 31, 1998 and under "Management’s Discussion and Analysis of Financial Condition and Results of Operations - Special Note Regarding Forward-Looking Statements" in the Company’s quarterly report on Form 10-QSB for the quarterly period ended June 30, 1999.