SALINAS, Calif., March 17 /PRNewswire-FirstCall/ -- Scheid Vineyards Inc. announced today its financial results for the year ended December 31, 2007. Mike Thomsen, Chief Financial Officer, reports, "Income from operations for the year ended December 31, 2007 totaled $0.6 million ($0.59 per share), compared to $3.0 million ($2.93 per share) for the same period in 2006. Taking into account non-recurring items and income taxes, net income for 2007 was $1.9 million ($1.86 per share), compared to $1.1 million ($1.12 per share) in 2006. Non-recurring items in 2007 included the sale of a 360-acre vineyard which resulted in a gain of $4.2 million, and the decrease in the market valuation of an interest rate swap of $1.2 million." Mr. Thomsen continued, "Revenues for the year ended December 31, 2007 increased to $36.7 million from $30.1 million for the same period in 2006, an increase of 22%. This increase was driven primarily by sales of bulk wine and processing and storage revenues generated by the Company's winery. These increases were partially offset by a decrease in grape sales, primarily because the Company converted 69% of its grape production into bulk wine in 2007, as compared to only 42% in 2006." Mr. Thomsen also reported that the Company's Board of Directors has approved a change in the Company's fiscal year end from December 31 to February 28. "The change was made to report financial results in a manner more consistent with the Company's revenue cycle which has changed as the result of the shift from the sales of primarily wine grapes to primarily bulk wine. The Company's first full new fiscal year after this change will be February 28, 2009." Scheid Vineyards Inc. (http://www.scheidvineyards.com/) operates approximately 5,300 acres of premium wine grape vineyards, primarily in Monterey County, California. The Company is in the business of selling grapes and bulk wine to wineries producing high quality table wine. The Company also operates a winery that has approximately 30,000 tons of annual processing capability in which it crushes grapes for its own account, as well as for winery customers. The Company also produces a small amount of ultra premium wine under the Scheid Vineyards label, which is sold through the Company's tasting room, wine club, and local-area retailers. The Class A Common Stock of Scheid Vineyards is traded on the Pink Sheets Electric Quotation Service under the stock symbol SVIN. The "Pink Sheets" is a centralized quotation service that collects and publishes market maker quotes in real time, primarily through its website, http://www.pinksheets.com/. This release contains forward-looking statements as well as historical information. Statements of goals and strategies and words such as "plan", "believe", "anticipate", "expect", "objectives", "forecast", and "predict" and other similar words are intended to identify forward-looking statements. These forward looking statements are included in accordance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, and involve risks, uncertainties and other factors that may cause the Company's actual results, performance, or financial condition to be materially different from any results, performance, or financial condition suggested by the statements in this release. SCHEID VINEYARDS INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands, except per share data) Year Ended December 31 2007 2006 REVENUES: Bulk wine sales $ 24,722 $ 9,005 Grape sales 6,075 16,371 Winery processing and storage revenues 4,384 3,145 Vineyard management, services and other fees 1,001 1,056 Tasting room revenues 549 495 Total revenues 36,731 30,072 COST OF SALES 26,625 17,687 GROSS PROFIT 10,106 12,385 General and administrative expenses 6,130 6,366 Selling expenses 567 576 Interest expense, net 2,786 2,439 INCOME FROM OPERATIONS 623 3,004 Market adjustment for interest rate swap 1,249 - Litigation settlement - 966 Write-down of vineyard improvements 256 119 Gain on sale of land and equipment (4,142) - INCOME BEFORE PROVISION FOR INCOME TAXES 3,260 1,919 PROVISION FOR INCOME TAXES 1,360 774 NET INCOME $ 1,900 $ 1,145 NET INCOME PER SHARE: BASIC $ 1.86 $ 1.12 DILUTED $ 1.86 $ 1.11 WEIGHTED AVERAGE SHARES OUTSTANDING: BASIC 1,021 1,023 DILUTED 1,023 1,029 DATASOURCE: Scheid Vineyards Inc. CONTACT: Scott Scheid, President and CEO, or Mike Thomsen, Chief Financial Officer, Scheid Vineyards Inc., +1-831-455-9990 Web site: http://www.scheidvineyards.com/ http://www.pinksheets.com/

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