Big Rock Brewery Income Trust Announces Quarterly Results.

Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--Aug. 5, 2003

Big Rock Brewery Income Trust (the "Trust")(TSX:BR.UN) is pleased to report to unitholders its consolidated financial results for its quarter ended June 30, 2003. These results reflect the consolidated operations of the Trust, Big Rock Brewery Ltd. ("Big Rock") and its wholly owned subsidiaries Bear Brewing Company Ltd. and Whistler Brewing Company Ltd.

Big Rock, one of North America's leading specialty brewers, was reorganized into Big Rock Brewery Income Trust on January 10, 2003 pursuant to a statutory plan of arrangement. The Trust, indirectly through its operating entities, operates Big Rock's premium brewing business. The purpose of the conversion was to create a trust entity which distributes a substantial amount of its cashflow to unitholders on a monthly basis.

The Trust has selected December 31 as its fiscal year-end instead of March 31 as previously reported by Big Rock Brewery Ltd. It is anticipated that Big Rock and its subsidiaries will change their fiscal year-ends to December 31 to correspond with the fiscal year-end of the Trust. Financial results for the period after the effective date of the plan of arrangement reflects the continuity of interest basis of accounting.

For the quarter ended June 30, 2003, gross sales were $12,474,739 an increase of 21% compared to gross sales of $10,333,625 during the same quarter last year.

Net sales revenue, which is gross sales less government taxes and commissions, rose to $9,754,918 from $7,863,009 last year, a 24% increase.

Sales volume in hectoliters increased this quarter to 48,587 from 38,227 the previous year, a 27% increase.

Cost of sales this quarter was $3,457,582, an increase of 8% over last year. The acquisition of the Kamloops brewery has reduced the per hectoliter application of labor and overhead to production thus resulting in an improvement in manufacturing costs this quarter over the same period last year.

Gross profit, which is net sales less cost of sales, was up 35% from $4,651,951 last year to $6,297,336 this year.

Selling expenses increased to $2,844,304 this quarter compared to $2,404,880 for the same period last year, an 18% increase. Management's stated objective of reducing selling costs per hectoliter by more carefully targeting sales promotions over the last year has resulted in slowing the growth of selling expenses as sales increase. General and administrative expenses increased to $871,503 from $649,207 the previous year. This increase arose principally from the addition of staff, property and business tax, and other office costs resulting from the consolidation of the Kamloops operation.

EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter was $2,206,807 compared to EBITDA of $1,597,864 in the comparative quarter in the prior year a 38% increase.

Net income for the quarter was $1,543,133 compared to $801,686 last year.

Earnings per Unit/Share were $0.28 this quarter compared to $0.15 for the same quarter last year.

On January 10, 2003 the Trust announced a policy of monthly distributions of $0.06 per trust unit for the remainder of 2003. The Trust declared total cash distributions of $0.18 per trust unit this quarter amounting to $999,065 in total. For the first two quarters of calendar 2003 the total cash distributions were $0.34 per trust unit amounting to $1,885,676 in total.

Big Rock is a regional producer and marketer of premium quality beers, headquartered in Calgary, Alberta, Canada. Big Rock's products are available in draught, bottles and cans. The Company also produces or distributes cider and cooler products. Big Rock products are marketed in five provinces and three territories in Canada and in the western United States.