SonomaWest Holdings Announces
             Receipt of Delisting Notice from NASDAQ SmallCap Market

           Company Expects Common Stock to Trade on OTC Bulletin Board

      Sebastopol, California, August 3, 2005. SonomaWest Holdings, Inc. (Nasdaq:
SWHI) today announced that it received a notice from the Listing  Qualifications
Department of the Nasdaq Stock Market dated August 1, 2005  indicating  that the
company's  common  stock will be delisted  from the Nasdaq  Stock  Market at the
opening of  business  on August 10,  2005.  The  Company  does not  satisfy  the
director  independence  requirements  that are  contained in Nasdaq  Marketplace
Rules 4350(d)(2)(A) and 4350(c)(1),  and the intended delisting is the result of
the Company's  inability to certify  compliance with applicable Nasdaq corporate
governance requirements by July 31, 2005 as required by the Nasdaq rules.

The company anticipates that the last trading day for the Company's common stock
on the Nasdaq  SmallCap  Market will be August 9, 2005. The company  anticipates
that after  August 10, the common  stock will be eligible for trading on the OTC
Bulletin Board,  once one or more  market-makers  commence trading of the common
stock on the Bulletin  Board.  The OTCBB is a regulated  quotation  service that
displays   real-time  quotes,   last-sale  prices  and  volume   information  in
over-the-counter  securities.  OTCBB  securities  are traded by a  community  of
market  makers that enter  quotes and trade  reports  through a closed  computer
network.  Trading  information and quotations for securities  quoted through the
OTCBB are  generally  available  on business  news and  financial  websites  and
through  securities  brokers.  The OTCBB is a quotation  medium for  subscribing
members,  not an issuer  listing  service,  and should not be confused  with The
Nasdaq  Stock  Market  or  Nasdaq  SmallCap  Market.  Trading  of the  company's
securities on the OTCBB will not commence  until a market maker has filed a Form
211 and such  form has been  cleared  by the  OTCBB  pursuant  to Rule  15c2-11.
Further  information  regarding  the  OTCBB can be found at  www.otcbb.com.  The
company intends to provide market makers with the information  necessary for the
common stock to be quoted on the OTCBB. However, since a determination cannot be
made whether the company's  stock is eligible for trading on the OTCBB until the
delisting  from the Nasdaq  SmallCap  Market is effective and a market maker has
obtained  clearance  to trade in the  Company's  common  stock,  there can be no
assurance that the Company's  stock will be eligible for trading on the OTCBB or
when trading will commence.

Forward Looking Statements

This press release contains  forward-looking  statements regarding future events
and future  performance of the company,  which involve risks and  uncertainties.
Actual results could differ  materially  from those projected or implied by such
forward-looking  statements.  For  example,  there  is  no  assurance  that  the
company's  shares will  commence  trading on the OTCBB,  when such  trading will
commence or that the market for the  company's  shares on the OTCBB will provide
an  adequate  and  efficient  market for those  wishing  to trade the  company's
shares.  We refer you to documents that the company files from time to time with
the Securities and Exchange Commission, such as the company's most recent annual
report on Form 10-K,  quarterly reports on Form 10-Q and current reports on Form
8-K,  which  contain a  description  of certain  factors that could cause actual
results to differ from current  expectations and the forward-looking  statements
contained in this press release.