Untitled Document

For Immediate Release:

August 13, 1998

SCHEID VINEYARDS INC. REPORTS SECOND QUARTER RESULTS

CEO Makes Statement Concerning 1998 Harvest

MARINA DEL REY, CA - August 13, 1998 - Scheid Vineyards Inc. (Nasdaq-NMS: SVIN)

announced today its financial results for the second quarter ended June 30, 1998.

For the three months ended June 30, 1998, revenues increased 185% to $662,000 from $232,000 in the 1997 period.
Net loss decreased to $286,000, or $.04 per share, for the 1998 period as compared to a pro forma net loss of $455,000
, or $.10 per share, for the 1997 period.

For the six months ended June 30, 1998, revenues increased 104% to $1,182,000 from $579,000 in the 1997 period.
Net loss increased to $766,000, or $.11 per share, for the 1998 period as compared to a pro forma net loss of $735,000,
or $.17 per share, for the 1997 period. The weighted average number of shares outstanding increased to 6.7 million in
1998 from 4.4 million in 1997.

Ms. Heidi M. Scheid, Chief Financial Officer of the Company, stated, "Second quarter results are generally in line with
expectations, with the increase in revenues due primarily to sales of bulk wine produced from the 1997 harvest. The wine
grape business is seasonal and Scheid Vineyards recognizes substantially all of its crop sale revenues at the time of its
annual harvest in September and October."

Mr. Alfred G. Scheid, Chief Executive Officer, simultaneously released the following statement concerning expectations
for the coming harvest and its impact on the anticipated financial results for the fiscal year ending December 31, 1998:

SVIN Reports Second Quarter Results

Page 2

August 13, 1998

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"Our vineyards were not negatively affected by the unusually heavy rains of last winter, since the vines
were dormant, and spring frost did not pose a threat at any time. However, unseasonably cool and cloudy
weather continued from late May into mid-July, causing mildew and other problems which delayed vine
growth and crop development in most California coastal and some interior vineyards. Controlling these
problems in our vineyards necessitated leaf removal, thinning, spraying and other activities, resulting in
higher than expected farming expenses. Recent industry crop surveys or the coastal regions estimate that
the 1998 grape crop will be down 15% to 20% from 1997's record high crop year. Scheid Vineyards
most recent internal crop projections indicate a decrease in tonnage for the 1998 harvest generally in line
with these industry estimates. This anticipated reduction in revenue and increase in expenses is expected to
be partially offset by price increases averaging about 11%. Management believes, however, that 1998
revenues and earnings per share will be lower than those expected in industry analysts’ reports published
earlier in the year."

Scheid Vineyards Inc. is a leading independent producer of premium wine grapes and operates 5,280 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.

Note: This press release contains forward-looking statements concerning expectations for the 1998 harvest and the
Company's 1998 financial performance. These forward-looking statements are subject to risks and uncertainties that
could cause actual results to differ materially and adversely from those set forth in the forward-looking statements.
For further details and a discussion of the risks and uncertainties which affect or may affect the Company, refer to the
Company’s filings with the Securities and Exchange Commission, including its most recent Form 10-QSB dated
August 13, 1998, Prospectus dated May 8, 1998 and Form 10-KSB dated March 30, 1998. The forward-looking
statements represent the Company’s judgment as of the date of this press release. The Company disclaims any intent
or obligation to update its forward-looking statements.

SVIN Reports Second Quarter Results

Page 3

August 13, 1998

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SCHEID VINEYARDS INC. AND SUBSIDIARY

UNAUDITED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share data)

	Three Months Ended June 30,		Six Months Ended June 30,
	1998	1997	1998	1997
REVENUES:
Sales	$ 438	$ 16	$ 745	$ 16
Vineyard management, services and other fees	224	216	437	563

Total revenues	662	232	1,182	579
COST OF SALES	212	24	343	24

GROSS PROFIT	450	208	839	555
General and administrative expenses	944	830	2,147	1,458
Interest expense (income), net	(17)	137	(32)	322

LOSS BEFORE INCOME TAX BENEFIT	(477)	(759)	(1,276)	(1,225)
INCOME TAX BENEFIT	191	—	510	—

NET LOSS	$ (286)	$ (759)	$ (766)	$ (1,225)

BASIC AND DILUTED LOSS PER SHARE ¹	$ (0.04)	$ (0.17)	$ (0.11)	$ (0.28)

PRO FORMA AMOUNTS ²:
LOSS BEFORE INCOME TAXES AS REPORTED		$ (759)		$ (1,225)
PRO FORMA INCOME TAX BENEFIT		304		490

PRO FORMA NET LOSS		$ (455)		$ (735)

PRO FORMA BASIC AND DILUTED NET LOSS PER SHARE		$ (0.10)		$ (0.17)

WEIGHTED AVERAGE SHARES OUTSTANDING	6,699	4,400	6,700	4,400

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

² Prior to the Company’s initial public offering in July 1997, the Company was organized as an S Corporation and Partnerships. In connection with the offering, the Company was reorganized as a C Corporation. Pro forma loss per share is derived by providing an income tax benefit as if the Company had been a C Corporation during the entirety of the three and six month periods ended June 30, 1997.