Scheid Vineyards is to construct a new winery facility to be located at the company's vineyard headquarters just off of US Highway 101 on Hobson Avenue near Greenfield, California.

Scott D. Scheid, the company's president and CEO, said: "We are pleased to announce a decision to build a state-of-the-art winery catering to premium wine customers in the heart of the Monterey County wine grape growing region. The completion of the first phase of the Scheid Winery will result in the capacity to crush approximately 10,000 tons of grapes and will require an estimated investment of US$18m to US$20m. The Scheid Winery will operate both as a custom crush facility for present and future winery customers, as well as a wine making facility for our own grape production. We anticipate the new facility will be in partial operation by the harvest season in the fall of 2005."

Scheid continued: "A second phase of winery construction is planned over the next three to five years, bringing total processing capacity to approximately 25,000 tons. The zoning administrator of Monterey County has approved a use permit for the project, however, building and other permits are necessary in order for construction to begin. We anticipate that we will be able to commence this project in February."

In 2004, Scheid Vineyards processed over 6,000 tons of its own grapes into wine using third party winery facilities, both within and outside of Monterey County.

Scheid said: "A large portion of the wine grapes grown in Monterey County are shipped out of the area for processing, and we see a clear need for additional local wine making capability. Further, the Scheid Winery's location on US Highway 101, just south of Greenfield, is an accessible and efficient location for processing wine grapes grown in the Central Coast region."