Mendocino Brewing Announces Increases in Production and Sales.

HOPLAND, Calif.--(BUSINESS WIRE)--Aug. 15, 1997--Since the Mendocino Brewing Co.'s new production facility in Ukiah went on line in early May, the focus has been on producing draft beer, and keg sales have been extremely active.

The brewery has now moved the bottling line from the original brewery in Hopland to the new facility, and is now able to produce both kegged and bottled beer for the marketplace. Production is currently at an annual rate of 40,000 barrels per year (a brewer's barrel equals 31 gallons).

This more than doubles last year's Hopland production of 17,000 bbls. Total year-to-date shipments are up 51% over last year; case sales are up 36% and out-of-state shipments are up 81%.

However, even with this increase in brewing, demand still outpaces production. To try to match demand, the company has moved six of its fermenting tanks from Hopland to Ukiah, with the goal of increasing output to approximately 60,000 bbls as quickly as possible. In the long term, the MBC plans to reach a production level of 200,000 bbls by the end of the decade.

The Mendocino Brewing Co. is California's first brewpub since Prohibition, and the second in the United States. The company sold stock in 1994, and is listed on the Pacific Stock Exchange under the symbol "MBR.P," one of only a few small manufacturing companies to be accepted on to the PSE.

MBC CEO Michael Laybourn added: "Ever since we began, back in 1983, demand for our hand-crafted ales has always outpaced production. We are now going through a major expansion period which will go a long way toward solving this rather delightful dilemma, and which will increase company value. These are very exciting times for us."

For further information, contact Bob Meadows at 707/744-1015, or access the MBC on the Web via the Real Beer Page at mendobrew.com . The email address is [e-mail] .

CONTACT: Mendocino Brewing Co., Hopland

Bob Meadows, 707/744-1015