Pyramid Breweries Inc. Announces New President and COO.

SEATTLE--(BUSINESS WIRE)--July 8, 1999--

Pyramid Breweries Inc. (Nasdaq:PMID) today announced the appointment of Martin Kelly as President and Chief Operating Officer. The position had been open since January 1999.

"We are delighted to have Martin joining us," said George Hancock, Chairman and CEO of Pyramid Breweries Inc., "Martin was formerly Western Region Vice President for Miller Brewing Company and will transition to our team in mid August. He brings a wealth of experience, energy and vision to our company that I know will help us achieve and sustain our goal of long term growth. His addition will allow me to focus on corporate strategy, alliance and acquisition opportunities, new business development and external affairs. Martin will work with me on these issues and will have full operating responsibility for our three business segments (beer, soda, and alehouses) as well as sales, marketing and brewery operations."

Kelly had been at Miller since 1994, where he was responsible for sales, marketing and distribution for 23 western states, representing about a third of Miller's domestic volume. Since 1997, he had the additional responsibility of overseeing all operations of the Jacob Leinenkugel Brewing Company, a wholly owned subsidiary of Miller that competes very successfully in the specialty and regional beer categories in the Midwest.

Prior to joining Miller, Kelly held a number of VP level sales and marketing positions in Borden's snack and dairy divisions. Before Borden, Kelly spent twelve years in the soft drink business, progressing through a variety of sales, marketing and general management positions for Coca-Cola USA and Coca-Cola Enterprises. His last position at Coca-Cola Enterprises was Division Vice President and General Manager for the Mid Atlantic area.

"I am excited to be joining one of the first and most successful companies in the specialty beer category," said Kelly, "I believe Pyramid has tremendous upside opportunity and together with George and the rest of the Pyramid team, I plan to move quickly to strengthen our position in the marketplace." Kelly will maintain offices at corporate headquarters in Seattle and at the company's Berkeley, California brewery and alehouse. "I think my presence in California will be very helpful in expanding our business in the area, and maximizing the effectiveness of our newest and most efficient brewery," Kelly said.

Pyramid Breweries Inc. is one of the leading craft brewers in the market for fresh, full flavored specialty beers. The company brews over 25 different styles of ales and lagers under its Pyramid Ales, Thomas Kemper Brewing Company and new Brasserie Monx brands as well as four styles of old-fashioned sodas under the Thomas Kemper Soda Company label. Pyramid operates two local breweries and restaurants, the Pyramid Brewery & Alehouse in Seattle, Washington, and the Pyramid Brewery & Alehouse in Berkeley, California. For more information, visit www.pyramidbrew.com.