Big Rock Brewery Ltd. Announces Year-End Results.

Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--June 19, 2002

Big Rock Brewery Ltd. (NASDAQ:BEERF)(TSX:BR) is pleased to announce its results for the year-ended March 31st, 2002.

Sales revenue increased to $34,522,928 this year from $32,238,035 last year. This 7% increase was due primarily to increased shipments into our three largest markets, Alberta, British Columbia, and Ontario. In terms of volume, hectoliters sold increased 6% this year to 127,516 from 120,420 the previous year.

Cost of sales as a percentage of sales was up 1% this year over the previous year. On an unconsolidated basis Big Rock's cost of manufacturing was relatively constant when compared with last year. Our new joint venture with Bear Brewing and the transfer of production of the Whistler and Bowen brands to Bear resulted in some additional one time costs in this transitional year. We expect that new economies of scale and Whistler/Bowen brand rationalization will positively impact the cost of manufacturing next year.

Selling expenses of $8,631,472 are comprised of promotional materials, automobile, and sales representative expenses, advertising, promotion, and marketing campaign costs, sales salaries, trucking and delivery costs, sponsorships, and agents' commissions. Selling expenses as a percentage of sales were 25% this year, down 1% from last year.

General and Administrative expenses at $2,354,559 increased 1% as a percentage of sales this year over last.

EBITDA at $3,755,594 was relatively flat with last year ($3,782,486).

Interest on long term debt at $294,027 decreased by $157,894 from last year due to the $1,838,779 reduction of principal during the year and lower interest rates. A blended payment of $155,000 is made to the Royal Bank monthly. Security for these borrowings is a general assignment of the Company's assets.

In 2001 the Company was able to apply the last of its loss carry-forward amounts to reduce the amount of current income taxes. As these tax losses were not available this year the current income tax liability increased by $499,000 while the future income tax liability decreased by $403,000.

Net income for the year was $1,217,786 a decrease of $134,787 over 2001. Earnings per share this year were $0.24 (2001- $0.29). During the year 355,006 new shares were issued and 22,500 shares were cancelled pursuant to a normal course issuer bid.

At year-end the Company had utilized $1,857,882 (2001 - $1,362,907) of its $3,000,000 bank operating line of credit. This credit facility bears interest at Royal Bank prime rate. Short term interest expense at $34,163 was $57,835 lower than last year as the bank operating line was used less during the year.

Financing activities included the private placement of shares for proceeds of $990,000 ($1,800,000 in 2001) and an expenditure of $102,650 (2001 - $744,304) for the open market purchase of 22,500 common shares under our Normal Course Issuer Bid. This reduced share capital by 22,500 shares having a book value of $52,925. The excess of market price paid over book value was charged to retained earnings. Our Normal Course Issuer Bid expired on August 27, 2001.

Additions to capital assets this year were primarily for the purchase of our new Edmonton distribution facility and for upgrades to our bottling and canning lines. The Company also developed a new order entry sales reporting system this year which is providing superior management information for timely decision making. In addition, Whistler capital assets of $404,000 are included in capital additions this year.

Total net capital asset additions of $2,475,448 resulted in an increase of $227,624 in amortization expense relating to capital assets this year over last year.

Big Rock is a regional producer, marketer, and distributor of bottles, cans, and kegs of premium quality specialty beers, also known as craft beers.

The Company has sales and distribution facilities at the Brewery in Calgary, Alberta as well as in Edmonton, Alberta. Company sales representatives are also resident in British Columbia, Saskatchewan, Manitoba, and Ontario. Through its 50% interest in the BWB Joint Venture, the Company sells and distributes Bear, Whistler, and Bowen products in British Columbia and Alberta. In the western United States the Company's products are distributed by third party agents.

The Company's beer products compete primarily in the specialty beer segment, the defining qualities of which are taste, price, quality, and image. This category includes both domestic and imported specialty beers.

As consumer preferences continue to trend towards higher quality more flavorful beers, Big Rock is well positioned to benefit. The Company will continue to focus its marketing efforts on its core brands. Our brand equity and the quality and consistency of our products ensure that we are able to compete effectively with both the domestic specialty brands and the imports.

Selected financial information for the year is as follows:

Consolidated Balance Sheet
As at March 31
Audited
(Canadian $)
                                           2002         2001
Assets:                                    ----         ----
Current assets                         $6,492,345.  $6,455,188.
Capital assets                         25,872,488.  24,844,994.
Long term investment                      227,222.            -
Other assets                              216,806.      45,619.
Goodwill                                  251,830.            -

                                      ------------ ------------
Total assets                          $33,060,691. $31,345,801.
                                      ------------ ------------

Liabilities and Shareholders' Equity:
Current liabilities                    $5,357,882.  $4,475,706.
Long-term debt                          1,502,275.   3,469,976.
Future income taxes                     4,416,400.   4,362,400.

                                      ------------ ------------
Total liabilities                      11,276,557.  12,308,082.
                                      ------------ ------------

Shareholders' equity:
Share capital                          13,131,991.  11,553,637.
Retained earnings                       8,652,143.   7,484,082.

                                      ------------ ------------
Total Shareholders' equity             21,784,134.  19,037,719.
                                      ------------ ------------

Total Liabilities and Shareholders'
 equity                               $33,060,691. $31,345,801.
                                      ------------ ------------


Consolidated Statements of Operations & Retained Earnings
Years ended March 31
Audited
(Canadian $)
                                              2002         2001
                                      ------------ ------------
Revenue
Sales                                  $34,522,928  $32,238,035
Government taxes and commissions       (9,613,847)  (9,038,357)
                                      ------------ ------------
                                        24,909,081   23,199,678

Cost of sales                           10,167,456    9,240,503

                                      ------------ ------------
Gross profit                            14,741,625   13,959,175
                                      ------------ ------------

Expenses
Selling                                  8,631,472    8,227,273
General & administrative                 2,354,559    1,949,416
Interest                                   328,190      543,919
Amortization                             1,458,618    1,230,994
                                      ------------ ------------
                                        12,772,839   11,951,602

                                      ------------ ------------
Income before income taxes               1,968,786    2,007,573

Current income tax expense                 697,000      198,000
Future income tax expense                   54,000      457,000
                                      ------------ ------------
                                           751,000      655,000

                                      ------------ ------------
Net income for the year                  1,217,786    1,352,573
                                      ------------ ------------

Retained earnings, beginning of year     7,484,082    6,551,550
Redemption of common shares               (49,725)    (420,041)
                                      ------------ ------------

Retained earnings, end of year          $8,652,143   $7,484,082
                                      ============ ============

Big Rock is dedicated to the brewing of premium beers using only water, hops, yeast, and various combinations of malted barley and malted wheat. Big Rock products contain no preservatives or adjuncts. Rather than using pasteurization, which affects the flavour of the beer, all product is packaged after cold sterile filtration. Big Rock was established in 1985 by founder and CEO Ed McNally.

For further information relating to Big Rock or the matters described in this news release, please contact:

Bob King                         Tim A. Duffin, C.A.
President                        Chief Financial Officer
5555 - 76th Avenue S.E.          5555 - 76th Avenue S.E.
Calgary, Alberta T2C 4L8         Calgary, Alberta T2C 4L8
Tel: [phone]              Tel: [phone]
Fax: [phone]              Fax: [phone]