Russell Breweries Inc.

Russell Breweries Inc.

November 30, 2007 14:01 ET

Russell Breweries Inc. Announces Q1 2008 Results

Net sales increase 70% in Q1 2008 vs. Q1 2007

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 30, 2007) - Russell Breweries Inc (TSX VENTURE:RB) a producer of premium craft beer in Western Canada, today reported consolidated results for its fiscal quarter ended September 30, 2007.

Net revenues for Q1 2008 increased 70.5% to $452,465 from $265,363 (restated) in the comparative 2007 fiscal quarter.

The Company had a net loss of $671,068, a loss of $0.03 per share, for Q1 2008 compared to a loss of $158,858 (restated) or $0.02 loss per share (restated) in the comparative 2007 fiscal quarter.

"We continue to grow sales at a strong pace which includes our BC Lions / BC Place account. Q1 loss included $280,800 (Q1 2007 $nil) of stock compensation expense and $86,926 (Q1 2007 $33,635) of amortization which are non cash items. Marketing costs increased by $182,761 over Q1 2007, reflecting increased branding expenditures and a substantial portion of the BC Lions / BC Place sponsorship expense, as well as increased corporate activities and costs associated with a more than doubling of brewing capacity over 2007 quarter," said Andrew Harris, President. "Looking ahead, Q2 2008 results will include results of Fort Garry Brewing Company from the acquisition date, October 22, 2007 onward."

For further details the Company's complete MD&A and financial statement for the quarter ended September 30, 2007 will be available on SEDAR at and the Company's web site at

Russell Brewing Company and Fort Garry Brewing Company are wholly owned subsidiaries of Russell Breweries Inc. (TSX VENTURE:RB). Russell Brewing Company produces premium beer in British Columbia. 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. Fort Garry Brewing Company is Manitoba's largest brewery operation 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.

Contact Information