Sleeman Breweries Ltd.
TSX : ALE

Sleeman Breweries Ltd.

August 25, 2006 17:00 ET

Sleeman Announces Mailing of Sapporo Offer and Take-Over Bid Circular Together with Directors' Circular

TORONTO, ONTARIO--(CCNMatthews - Aug. 25, 2006) - Sleeman Breweries Ltd. ("Sleeman")(TSX:ALE) announced today that Silver 2501 Canada Inc., an indirect wholly-owned subsidiary of Sapporo Breweries Ltd. ("Sapporo"), mailed today to shareholders of Sleeman its Offer and Take-Over Bid Circular and related documents in connection with Sapporo's previously announced offer to acquire all of the issued and outstanding common shares of Sleeman at a cash price of $17.50 per common share. Included in the package mailed to shareholders is the Directors' Circular prepared by Sleeman's board of directors which includes the unanimous recommendation of the board of directors that Sleeman shareholders accept the Offer and tender their shares to the Offer.

The Offer will be open for acceptance until 5:00 p.m. (Toronto time) on October 2, 2006, unless withdrawn, extended or varied pursuant to the terms of the Offer. The Offer is subject to certain customary conditions including acceptance by shareholders representing a minimum of 66 2/3% of the outstanding Sleeman Common Shares on a fully diluted basis.

The consideration offered under the Offer represents a premium of (i) $2.67 or 18% to the closing price of the common shares on the Toronto Stock Exchange ("TSX") on August 11, 2006, the last trading day prior to the announcement of the Offer; and (ii) $5.85 or 50% to the closing price of the common shares on the TSX on May 11, 2006, the day prior to the announcement by Sleeman of the decision of its board of directors to initiate a review of strategic options for Sleeman.

The Offer and Take-Over Bid circular, the Directors' Circular and related documents have been filed with SEDAR and will be available at www.sedar.com.

About Sleeman (TSX:ALE)

Sleeman Breweries Ltd. is the leading brewer and distributor of premium beer in Canada and the third largest brewing company nation-wide. The company has supplemented its core Sleeman brands, which are available in every province, with a family of exceptional regional brands. These include Okanagan Spring and Shaftebury in British Columbia and Alberta, Upper Canada in Ontario, Unibroue and Seigneuriale in Quebec and Maritime Beer in Atlantic Canada. Sleeman entered the rapidly growing value price category in 1999 by acquiring the Stroh portfolio brands in Canada. The company markets and/or distributes world class imported products such as Guinness, Grolsch, Samuel Adams, Scottish & Newcastle, Sol, Sapporo, and Pilsner Urquell, and provides contract production for Japan's Sapporo Breweries products. The company's products are also available in selected international markets.

About Sapporo

Sapporo Breweries Ltd. is a wholly-owned subsidiary of Sapporo Holdings Limited, a Japanese holding company with an enterprise value of C$4.3 billion that is active in four business segments. Its Alcohol segment is engaged in the manufacture and sale of beer, sparkling liquor, wine, brandy and others. The company manufactures alcohol products including Sapporo Draft Beer, Yebisu Beer and Draft One. The company distributes Guinness, Yellow Tail and Beringer in Japan. The Beverage segment manufactures and sells beverages, such as tea, mineral water, coffee, carbonated drinks, fruit juice, health drinks, sports drinks and others. It distributes Ocean Spray Cranberry in Japan. Its Restaurant segment is involved in the operation of beer parlors and restaurants under the store name Ginza Lion. The Real Estate segment is engaged in the operation and management of complex facilities that contains offices, housing, restaurants, and commercial and cultural facilities under the name Yebisu Garden Place, in addition to commercial and amusement complex facilities.

Contact Information

  • Sleeman Breweries Ltd.
    John Sleeman
    Chairman & CEO
    (519) 826-5480
    www.sleeman.ca