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Saint Arnold Brewing Company Growth Continues, Current Space Tapped Out

HOUSTON, January 16, 2008 - Saint Arnold Brewing Company (www.saintarnold.com), the oldest craft brewery in Texas, today reported that 2007 was another record year. Annual production at the brewery in Northwest Houston grew more than 30 percent over the previous record set in 2006. Industry analysts say this pace of growth far outpaces the national microbrewery segment, which is expected to report annual growth in the low double digits for 2007.

Saint Arnold's 2007 production totaled 17,811 31-gallon barrels. It marked the fourth consecutive year of production increases of 20 percent or more. Meanwhile, the brewery came close to doubling its annual beer production over the past three years.

                          Year    Production      % Growth

                          2003     7,000 barrels      17 percent
                          2004     9,100 barrels      27 percent
                          2005    10,946 barrels     20 percent
                          2006    13,638 barrels     25 percent
                          2007    17,811 barrels     30 percent

Fueling the growth was strong demand across the entire selection of Saint Arnold beers. The brewery's rotating seasonal offerings grew the fastest and are now the number one selling line in the portfolio, overtaking Saint Arnold Amber Ale, which also experienced solid growth.

The steady growth is prompting Saint Arnold Brewing Company to make additional investments to further increase capacity. Three new 120 barrel fermenters are scheduled to go online early this year along with the brewery's first 120 barrel bright beer tank. These additions will increase the brewery's capacity by 25 percent.

"After we get this new equipment operating, our brewery will be tapped out in terms of space, which is a good problem to have, but a problem nonetheless," said Brock Wagner, founder of Saint Arnold Brewing. "The good news is that our beer is always fresh, but there may be times when stores run out, which we are working hard to prevent."

Wagner is in negotiations on a new larger brewery location in Houston.

Editor's Note: A photo of Brock Wagner sitting in the brewery's tasting room is available for download here.

About Saint Arnold Brewing Company

Saint Arnold Brewing's ten brews are made and sold by the company's staff of 21 dedicated employees. The brewery was listed by USA Today as one of the "10 great places to see what's brewing in beer." It is located at 2522 Fairway Park Drive and its brewery tour and tasting is offered every Saturday at 1:00 P.M. For more information on Saint Arnold's five year-round and five seasonal beers as well as root beer, log on to www.saintarnold.com.