Russell Breweries Inc.
TSX VENTURE : RB

Russell Breweries Inc.
Fort Garry Brewing Company Ltd.
TSX VENTURE : FGA

Fort Garry Brewing Company Ltd.

October 19, 2007 16:34 ET

Fort Garry Shareholders Approve Amalgamation With Russell With 99.93% Votes in Favour

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 19, 2007) - Russell Breweries Inc. ("Russell") (TSX VENTURE:RB) and Fort Garry Brewing Company Ltd. ("Fort Garry") (TSX VENTURE:FGA) are pleased to announce that holders of Fort Garry common shares (the "Fort Garry Shareholders") representing 99.93% of the votes cast voted in favour of the special resolution to amalgamate Fort Garry with a wholly owned subsidiary of Russell ("Russell Subco") at the special meeting of shareholders held October 18, 2007.

Fort Garry Shareholders were entitled to make one of the following three elections by way of Consideration Election and Transmittal Forms submitted to CIBC Mellon Trust Company by October 16, 2007:

1. Fort Garry Shareholders (other than ENSIS Growth Fund Inc. and ENSIS Investment Limited Partnership) could elect to receive, for each common share of Fort Garry, $0.40 ("Cash Only Consideration");

2. Fort Garry Shareholders could elect to receive, for each common share of Fort Garry, 0.50 of a Russell common share and $0.20 ("Share and Cash Consideration"); or

3. Fort Garry Shareholders could elect to receive, for each common share of Fort Garry, one Russell common share ("Share Only Consideration").

Fort Garry Shareholders who did not validly elect Cash Only Consideration or Share and Cash Consideration, were deemed to have elected the Share Only Consideration.

Fort Garry Shareholders tendered 30,857 Fort Garry common shares for Cash Only Consideration, 540,053 Fort Garry common shares for Share Only Consideration, and 1,484,521 Fort Garry common shares for Share and Cash Consideration. 2,055,431 Fort Garry common shares were tendered in total. The remaining 2,921,267 issued and outstanding Fort Garry common shares were deemed to have been tendered for Share Only Consideration.

The amalgamation is expected to become effective October 22, 2007. Once this occurs, an application will be filed to delist the common shares of Fort Garry from trading on the TSX Venture Exchange.

As a result of the amalgamation:

1. all 700,000 issued Class A preferred shares of Fort Garry will be converted to total cash payments of $953,725.88 to be paid to ENSIS Growth Fund Inc. and ENSIS Investment Limited Partnership, the holders of the Class A preferred shares;

2. all 4,976,698 issued Fort Garry common shares will be converted to a total of 4,203,580 common shares of Russell and total cash payments of $309,247, to be issued and paid to the holders of the Fort Garry Shareholders in accordance with the consideration elections made by them;

3. as consideration for the issuance of the 4,203,580 Russell common shares to the Fort Garry Shareholders to effect the amalgamation, New Fort Garry will issue 4,203,580 common shares of New Fort Garry to Russell; and

4. New Fort Garry will be a wholly owned subsidiary of Russell.

Russell Brewing Company produces premium beer in British Columbia. In 2006, Russell was recognized as BC's fastest growing brewery. Using all natural ingredients and traditional beer-making techniques, Russell beer is brewed for people who love beer. Products include: Russell Cream Ale, Russell Pale Ale, Russell Honey Blonde Ale, Russell Extra Special Lager plus two seasonal brews, Russell Lemon Ale and Russell Winter Porter. Russell Brewing Company is a wholly owned subsidiary of Russell Breweries Inc. (TSX VENTURE:RB).

Fort Garry Brewing Company Ltd. (TSX VENTURE:FGA) is Manitoba's largest brewer and distributor of premium quality beers including Fort Garry Dark Ale, Fort Garry Pale Ale, Fort Garry Premium Light, Two Rivers Red and Stone Cold.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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