SOURCE: Harbor Brewing Company; Seaway Valley Capital Corporation

March 15, 2010 09:24 ET

Harbor Brewing Company, Inc. Hires Design-Build Firm for Proposed New Brewery and Expansion of Brew Pub Restaurant

Vermont-Based Bread Loaf Experienced in the Design-Build of Craft Breweries

SACKETS HARBOR, NY--(Marketwire - March 15, 2010) - Harbor Brewing Company, Inc. (PINKSHEETS: HBWO), a holding of Seaway Valley Capital Corporation (PINKSHEETS: SEVA), announced that it has executed an agreement with Bread Loaf (www.breadloaf.com) for the design and construction of its proposed new brewery. The agreement calls for the Vermont-based firm to assist the Company throughout each phase of the process including planning, design, preconstruction and construction.

As part of the agreement, Bread Loaf will also oversee the design and construction of an expansion of the Company's existing restaurant, the Sackets Harbor Brew Pub.

President and CEO, Thomas Scozzafava, stated, "Over the past months we have met several times with Bread Loaf team members, and after internal discussion we feel that they best understand our culture, our intended aesthetics, and importantly, our business goals as they relate to both the potential new brewery and the expansion of the restaurant." Mr. Scozzafava continued, "As stated earlier, another positive attribute of Bread Loaf was its recent design and construction of two other similar-sized breweries." Bread Loaf designed and built 25,000 barrel per year breweries for Otter Creek Brewery and Catamount Brewery, and these approximate what Harbor Brewing Company would look to build for the production and bottling of a number of labels in its portfolio including Railroad Red, Harbor Wheat and Saint Stephen's Stout, along with seasonal beers such as Ontario Oktober Fest and Pumpkin Spice. Harbor would continue to outsource the brewing of its top selling brands with High Falls Brewing Company, but would also explore itself contract brewing for other, smaller breweries.

Stephen Flynn of Sackets Harbor Brewing Company stated, "Our goal would be to eventually brew about 25,000 barrels per year at our own facility and simultaneously have at least another 25,000 barrels of our most popular selling brands contract brewed. We feel this 'inside-outside' approach gives us both the economic advantages of scale as well as the ability to produce smaller-scale specialty beers and react more quickly to evolving tastes in the marketplace." Mr. Flynn also added, "Bread Loaf also shall oversee the expansion of the Brew Pub restaurant, which we think could increase restaurant revenues by over 30%."

About Harbor Brewing Company, Inc.

Harbor Brewing Company, Inc. develops and acquires craft brewing companies and select craft beer labels. The company acquired Sackets Harbor Brewing Company ("SHBC") (www.1812ale.com) in August 2009. SHBC develops, produces, and markets micro brewed beers such as the award winning "War of 1812 Amber Ale" and "Thousand Island Pale Ale" as well as "Railroad Red Ale", "1812 Amber Ale Light" and "Harbor Wheat" specialty beers. Its "1812 Amber Ale" is the company's flagship brand and was the winner of a Silver Award at the World Beer Championship. The company has also developed complementary products such as Sackets Harbor Coffee and Sackets Harbor Brewing Co. Root Beer.

About Seaway Valley Capital Corporation (www.seawayvalleycapitalcorp.com) makes equity, equity-related, and debt investments in companies that require expansion capital. Seaway also seeks investments in leveraged buyouts and restructurings. Seaway will consider investment opportunities in a number of different industries, including retail, restaurants, consumer products, media, business services, manufacturing, and select technologies. Seaway Valley's current portfolio includes Hackett's Stores, Inc. (PINKSHEETS: HCKI), Alteri Bakery, Inc., Harbor Brewing Company, Inc. and Seaway Realty Holdings, LLC.

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