MARINA DEL REY, CA -May 28, 1998- Scheid Vineyards Inc. (Nasdaq-NMS: SVIN) today announced the signing of a four-year labor agreement with the United Farmworkers of America which represents Scheid's field labor force. The contract is basically a continuation of the previous contract, with minor changes in certain provisions concerning field labor compensation, work rules and the use of contract labor. Wage increases average approximately 2.7% over the four-year life of the contract.

Scott D. Scheid, Chief Operating Officer, stated, "We are pleased that our new, long-term contract was negotiated fairly by both sides and that an agreement has been signed that gives new benefits to both parties." Further, "The agreement provides for more incentive-based compensation for workers, which is mutually beneficial. Scheid Vineyards has historically had good labor relations and has never experienced a strike or work stoppage."

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.