MARINA DEL REY, CA July 27, 1998 Scheid Vineyards Inc. (Nasdaq-NMS: SVIN) has instituted a stock repurchase program in which the Company may purchase in open market transactions up to a maximum of 200,000 shares of its Class A Common Stock at such times, in such amounts or blocks and at such prices as deemed appropriate. Although the program will expire on January 31, 1999, the Company may discontinue purchases at any time without having purchased the maximum number of shares.

In furtherance of the stock repurchase program, on July 24^th, the Company made a block purchase of 30,000 shares of the Company’s Class A Common Stock at a purchase price of $6.75 per share, for an aggregate purchase price of $202,500. Ms. Heidi M. Scheid, Chief Financial Officer of the Company, stated, "At current price levels, we believe that instituting a stock repurchase program is the right course of action and is in the best interests of the Company and our stockholders."

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.