Russell Breweries Inc.
TSX VENTURE : RB

Russell Breweries Inc.

September 20, 2007 13:49 ET

Fort Garry Sets Special Meeting Date for Amalgamation Vote With Russell

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 20, 2007) - Russell Breweries Inc. ("Russell") (TSX VENTURE:RB), today announced that Fort Garry Brewing Company Ltd. ("Fort Garry") has set October 18, 2007 as the date of the Special Meeting of Stockholders to vote on Russell's proposed purchase of all outstanding shares of Fort Garry through a Plan of Amalgamation.

Terms of the Definitive Agreement, signed July 27, 2007, include the purchase of all outstanding common shares and preferred shares of Fort Garry. Common shareholders of Fort Garry will have the option to receive for each Fort Garry common share, either: (a) one common share of Russell; or (b) one half of one common share of Russell plus $0.20 cash; or (c) $0.40 cash. The preferred shareholders have agreed to accept cash for the par value of their shares plus any accrued redemption premium and dividends.

"Fort Garry is a strategic acquisition for Russell with their surplus capacity and approximately $3 million in annual revenues," said Brian Harris, Russell's CEO. "This transaction will provide us with a base to become a major brewery operation in Western Canada and we are actively looking at other possible acquisitions that would fit into our business model," Harris added.

As part of the Definitive Agreement, the Company has a lock-up agreement with ENSIS Growth Fund Inc. ("ENSIS"). Under the lock-up agreement, ENSIS has agreed to vote all of its common shares of Fort Garry in favour of the transaction. ENSIS currently owns 1,071,675 common shares of Fort Garry, representing approximately 21.5% of the outstanding common shares and 628,305 preferred shares.

The transaction, originally announced May 28, 2007, has received conditional approval of the TSX Venture Exchange and will be subject to Fort Garry shareholder approval.

The 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 Beer, Frontier Pilsner, Two Rivers Lager, Two Rivers Light, Stone Cold, Rural Route Lager, and Two Rivers Red. Albino Rhino is produced for the Earl's restaurant chain in Manitoba. For more information, go to www.fortgarry.com.

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 Porter. Russell Brewing Company is a wholly owned subsidiary of Russell Breweries Inc. (TSX VENTURE:RB). For more information, go to www.russellbeer.com.

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

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