Marina del Rey, CA - June 30, 1998 - Scheid Vineyards Inc. (Nasdaq-NMS: SVIN) today announced the signing of a 17-year contract covering 325 acres of vineyards in southern Monterey County, in a viticultural appellation known as Hames Valley. The contract is for the sale of high quality, premium wine grapes to UDV North America (formerly Heublein, Inc.) and runs until 2014, with a two-year "evergreen" provision. The contracted acreage is part of a just-completed 1,100 acre vineyard development which the Company commenced in 1996 with the planting of 445 acres.

Mr. Scott Scheid, Chief Operating Officer of the Company, stated, "We began the 1,100-acre Hames Valley development in 1996. It was originally planned as a three or four year development, so we have completed it at least one year ahead of schedule. We will begin delivering fruit on about half of the 325 acres covered by the UDV contract in 1999 and on the balance in 2000." Mr. Scheid continued, "We are very pleased that with the signing of the UDV contract, all but a 200-acre portion of the development, which we are keeping for our own wine programs, has been contracted with large, successful wineries."

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. The Company also produces small quantities of ultra-premium wines under its own "Scheid Vineyards" and "San Lucas Vineyard" labels.