MARINA DEL REY, CA -December 28, 1998- Scheid Vineyards Inc. (Nasdaq-NMS: SVIN) today announced the signing of a long-term lease for 700 acres in Monterey County which it will develop into vineyards in 1999.

Mr. Scott D. Scheid, Vice President & COO, stated, "We are very pleased to have finalized this new long-term lease for 700 acres in Monterey County. The location is superb and the site is only 2 miles from our vineyard headquarters, offering us good economies of scale. We intend to plant the entire 700 acres to rootstock in 1999 and expect the first harvest in 2001."

Scheid Vineyards Inc. is a leading independent producer of premium wine grapes and, with the addition of the new long-term lease deal, 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 wines under its own labels.