Russell Breweries Inc.
TSX VENTURE : RB

Russell Breweries Inc.

September 05, 2007 15:49 ET

Russell Breweries Inc. Announces Extension of Completion Deadline for Definitive Merger Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 5, 2007) - With reference to the July 27, 2007 news release, Russell Breweries Inc. ("Russell") (TSX VENTURE:RB) announces that it has agreed with Fort Garry Brewing Company Ltd. to extend the Completion Date referred to in the Definitive Agreement from September 30, 2007 to October 22, 2007.

Terms of the Definitive Agreement 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.

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 favor 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 has received conditional approval of the TSX Venture Exchange and will be subject to Fort Garry shareholder approval.

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).

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

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