MARINA DEL REY, CA -June 3, 1998 -Scheid Vineyards Inc. (Nasdaq-NMS: SVIN) today announced the signing of a long-term grape purchase agreement with Beringer Wine Estates (Nasdaq: BERW). The contract covers 88 acres of premium pinot noir and chardonnay with deliveries beginning in 1998 and running through 2004. The agreement also contains an "evergreen" provision which provides for automatic extensions beyond 2004 under certain conditions.

Mr. Alfred G. Scheid, Chairman and CEO, stated, "We are pleased to have developed a client relationship with Beringer Wine Estates, one of the world’s leading producers of premium and ultra-premium wines. We intend to deliver high quality wine grapes to them and we hope to expand this very important relationship."

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.