HOUSTON, Jan. 13, 2009 – Saint Arnold Brewing Company (www.saintarnold.com), the oldest craft brewery in Texas, today reported production of nearly 23,000 barrels of beer in 2008. The increase of nearly 5,000 barrels over 2007’s record production tally represents a 28 percent boost for the year. Production has increased 225 percent during the past five years.

Saint Arnold Brewing is now operating 24 hours a day in its Northwest Houston facility to keep up with demand. Meanwhile, restoration and construction is underway on an historic building north of downtown Houston that is being turned into Saint Arnold’s new brewing facility. When opened in June, it will accommodate future growth.

“We are benefitting from the continued shift in tastes toward full-flavored beers and a preference for local brewers,” said Brock Wagner, founder of Saint Arnold Brewing. “The fact that we have been a part of the community for nearly 15 years also helps.”

This was the third consecutive year of production increases of 25 percent or more and the fifth straight annual increase of 20 percent or more.

Year                               Production                    Growth
2008                            22,749 barrels                      28 percent
2007                            17,811 barrels                      30 percent
2006                            13,638 barrels                      25 percent
2005                            10,946 barrels                      20 percent
2004                              9,100 barrels                      27 percent

Saint Arnold Amber Ale remains the top selling Saint Arnold beer, following by Saint Arnold Fancy Lawnmower and Saint Arnold Christmas Ale, which is only available part of the year.

So far, the craft brewing industry in Texas has been able to shrug off signs of softening in the industry. Eight craft breweries are now operating in Texas – a 60 percent increase from a year ago. Nationwide, craft brewers are faced with significant financial challenges, including rising costs for ingredients, the potential for costly changes to federal labeling requirements and uncertainty about consumer spending patterns in the midst of a prolonged recession.

“Good full-flavored beer is an affordable luxury,” said Wagner. “But we have our eyes wide open and we are being careful operationally because beer may be recession resistant, but it is not recession proof.”

Editor’s Note: A photo of Brock Wagner sitting in the brewery’s tasting room is available for download at http://www.dpkpr.com/files/56"http://www.saintarnold.com">www.saintarnold.com.