MARINA DEL REY, CA - November 12, 1997 - Scheid Vineyards Inc. (NASDAQ-NMS: SVIN) announced today its financial results for the third quarter ended September 30, 1997.

For the nine months ended September 30, 1997, revenues increased 90% to $13.3 million from $7.0 million in the 1996 period. Net income, before a one-time, non-cash charge to earnings of $1.4 million for a deferred tax adjustment, rose to $3.0 million, or $.61 per share, for the first three quarters of 1997 compared with pro forma net income of $1.4 million, or $.32 per share, for the 1996 period.

The deferred tax adjustment arose from the reorganization of the Company’s business from an S-Corporation and partnerships to a taxable C-Corporation in connection with the Company’s initial public offering in July 1997. Scheid Vineyards reported net income of $1.6 million, or $.32 per share, for the first three quarters of 1997, including the one-time deferred tax charge.

Commenting on the results, Mr. Al Scheid, chief executive officer of Scheid Vineyards, said, "We are very pleased with our third quarter results. The 1997 harvest exceeded our expectations and set new records for the Company for both tonnage and revenues." The Company estimates that it will record revenues in excess of $18 million for the fiscal year ending December 31, 1997.

Scheid Vineyards Inc. is a leading independent producer of premium wine grapes and operates 4,950 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.

The statement in this press release concerning the Company’s estimated revenues for the fiscal year ending December 31, 1997 is a forward-looking statement. Although the Company believes its estimate is realistic, it should be noted that not all information used to derive amounts due from customers has been finalized and actual revenues may differ from those projected above. The Company cautions that historical amounts of cost of goods sold and other expenses deducted in arriving at net income or historical ratios of costs and expenses to revenues may not provide an indication of gross profit or net income to be reported by the Company for fiscal 1997.

¹ Includes the effects of a one-time, non-cash charge for deferred income taxes arising from the reorganization of the Company from an S-Corporation and partnerships to a C-Corporation in connection with the Company’s initial public offering in July 1997.

² Pro forma earnings per share is derived by providing a provision for income taxes as if the Company had been a C-Corporation during the entirety of the periods covered by the statements of operations.