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The Shipyard Brewing Company Grows 11.3% in 2004: Part of National Trend Nationwide Craft Beer Sales Jump 7% -- Craft Beer Now the Fastest Growing Segment of Beverage Alcohol Industry Nationwide

PORTLAND, MAINE (February 22, 2005) -- The Shipyard Brewing Company sails into its 2nd decade of business with an all new brewery record. In 2004, Maine's largest brewery shipped over 700,000 cases (50,508 barrels) of its award-winning hand-crafted beer. This represents an 11.3% increase over 2003.

"This new record puts our company at more than 25% growth over 2 years," noted master brewer Alan Pugsley.

Since 2000, The Shipyard Brewing Company has grown at a phenomenal rate of more than 10% per year. Shipyard is the 4th largest selling beer in Maine -- topped only by Anheuser Busch, Coors, and Miller.

Nationally, in 2004 America's craft brewers sold 7% more beer than 2003; making craft beer the fastest growing segment of the U.S. beverage alcohol industry, according to the Brewers Association, the Boulder, CO-based trade association for small brewers in the U.S.

"Across the country craft beer volume growth outpaced that of imports, large brewers, wine and spirits in 2004," said Paul Gatza, Director of the Brewers Association.

Nationwide, the Brewers Association estimates 2004 sales by craft brewers at 7,023,651 barrels (approximately 97,000,000 cases) versus 6,563,461 barrels (approximately 90,500,000 cases) in 2003, an increase of 460,190 barrels or more than 6 million cases. In contrast, spirits volume increased at 3.1% for the year* and wine volume was up 2.7% **. The import and mass-market segments of the beer industry rose approximately 1.4% and 0.5% respectively in 2004.

"The craft beer segment continues to show healthy and steady growth with many individual brewers enjoying double-digit volume increases," remarked Charlie Papazian, president of the Brewers Association.

The Shipyard Brewing Company was founded in 1994 by master brewer Alan Pugsley and entrepreneur Fred Forsley. Shipyard produces 13 varieties of award-winning English style and seasonal beers and its products are distributed in over 25 states, including: Texas, California, Florida, Kentucky, Minnesota, North Carolina, and Michigan.

For further information on the U.S. craft beer industry, contact Paul Gatza (x122) or Ray Daniels (x125) at 303-447-0816 at the Brewers Association.

For further information about retail alcohol scan data, contact Bump Williams, executive vice president, at Information Resources, Inc. -- 203-845-6414.

* According to the Distilled Spirits Council of the United States (DISCUS). ** According to Information Resources Inc.

Contact:
Tami Kennedy
207-761-0807 x7135
tami@maine.rr.com