Russell Breweries Inc.
TSX VENTURE : RB

Russell Breweries Inc.

November 27, 2009 16:20 ET

Russell Breweries Inc. Reports Positive EBITA in Q1 2010 Fiscal Results

Company reports record sales and best profit performance in its history

VANCOUVER, BRITISH COLUMBIA--(Marketwire – Nov. 27, 2009) - Russell Breweries Inc. (TSX VENTURE:RB), a producer of premium craft beer, today reported earnings before interest, taxes and amortization (EBITA) of $167,695 for the first quarter fiscal 2010 (Q1 2010F) for the three month period ending September 30, 2009.

Net Sales for Q1 2010F were $1,833,960 up $135,032 or 7.95% compared to $1,698,928 for the three months ending September 30, 2008 (Q1 2009F).

The gross margin for Q1 2010F was up $85,144 or 9.10% to $1,021,109 compared to $935,965 for Q1 2009F. Overall gross margin percentage stayed at 55% compared to the same period a year ago.

Selling, general and administration expense for Q1 2010F decreased $49,876 or 5.52% to $853,414 compared to $903,290 for Q1 2009F. The decreases were, freight and administrative labour decrease of $26,526 to $228,429 from $254,955, and management fees decrease of $20,684 to $35,203 from $55,887.

Net loss decreased $194,420 or 64.44% to $107,299 for Q1 2010F or $0.00 per share compared to the net loss of $301,719 or $0.01 for the same quarter in 2009F.

"We are very pleased to report continuing improved results in all the key areas," says Brian Harris, CEO. "The net sales increase was achieved in a very competitive beer market and a flat economy. The bottom line improvements resulted from initiatives implemented by management and continued outstanding effort by our sales and marketing group over the past six months."

For further details the Company's complete MD&A and financial statements for the three and twelve months ending September 30, 2009 are available on SEDAR at www.sedar.com and the Company's web site at www.russellbeer.com.

One of BC's fastest growing companies, Russell Breweries Inc produces premium beers in Western Canada in breweries located in BC and Manitoba. All products are held to the highest quality standards, brewed without any preservatives, ensuring that the passion that goes into crafting the beers comes through in the taste. Russell Breweries Inc. is a public company trading on the TSX Venture Exchange under the symbol "RB".

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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