This is the Kiddush, the prayer of santification that ushers in all Sabbath days and most of the Jewish holidays.  The first cup of wine (cup of santification) is consumed after reading the Kiddush. 

    There are actually four cups of wine that are consumed during the Passover Seder. This comes from Exodus 6:6-7:

    "Therefore, say to the Israelites: 'I am the Lord and I will bring you out from under the yoke of the Egyptians.  I will free you from being slaves to them and will redeem you with an outstretched arm and with mighty acts of judgment.  I will take you as my own people, and I will be your God. Then you will know that I am the Lord your God, who brought you out from under the yoke of the Egyptians.'"  Exodus 6:6-7

    The four cups of wine are:

The cup of santification
The cup of Judgment
The cup of Redemption
The cup of Praise
    The text for the Kiddush is:

    Blessed art thou, O Lord our God, King of the Universe Who creates the fruit of the vine.

    Blessed art Thou, O lord our God, Who hast chosen us for Thy service from
among the nations, exalting us by making us holy through Thy commandments.  In love hast Thou given us, O Lord our God, holidays for joy and festivals for gladness.  Thou didst give us this Feast of Unleavened bread, the season of our freedom, in commemoration of our liberation from Egypt.  Thou hast chosen us for Thy service from among the nations and hast sanctified us by giving us, with love and gladness, Thy holy Festivals as a heritage.  Blessed art Thou, O Lord, Who hallowest Israel and the Festivals.

    Blessed art Thou, O Lord our God, King of the univers, Who hast kept us in life, Who hast preserved us, and hast enabled us to read this season.