Canada: Sleeman Breweries lowered its outlook for the fiscal year 2005

Sleeman Breweries Ltd. announced on October 24 that the Company lowered its outlook for expected earnings per share excluding non-recurring items (“normalized earnings per share”) to between $0.81 and $0.85 for its 2005 fiscal year.

The principle reason for the lower outlook is the increase in competitive pricing activities, particularly in the Ontario and Quebec premium markets, but also in Eastern and Western Canada, in the value segment, where small brewers benefit from tax subsidies.

“While we are pleased with the preliminary information on our third quarter and are confident about continued growth in the fourth quarter we have revised our previous guidance due to increased competitive price activities in the Canadian beer market and their estimated impacts on our prospects for the remainder of the year,” said John Sleeman, Chairman and Chief Executive Officer.

“At the same time, we believe the actions we are taking to reduce our production, distribution and selling, general and administrative costs coupled with the introduction of new products and sales and marketing programs as well as our new Femsa contract leave us well positioned to return to more traditional growth next year. Sleeman is a profitable company that remains committed to growing long term shareholder value. The management team is focused on taking the steps necessary to achieve this goal,” added Mr. Sleeman.

Actual results for the quarter ended October 1, 2005 and further details on the Company’s expectations for the remainder of fiscal 2005 will be reported on October 28, 2005 via regulatory filings and a conference call.

Sleeman Breweries Ltd. is the leading brewer and distributor of premium beer in Canada and the third largest brewing company nation-wide. The Company has supplemented its core Sleeman brands, which are available in every province, with a family of exceptional regional brands. These include Okanagan Spring and Shaftebury in British Columbia and Alberta, Upper Canada in Ontario, Unibroue and Seigneuriale in Quebec and Maritime Beer in Atlantic Canada. Sleeman entered the rapidly growing value price category in 1999 by acquiring the Stroh portfolio of brands in Canada. The company markets and/or distributes world-class imported products such as Guinness, Grolsch, Samuel Adams, Scottish & Newcastle (including Bulmers Strongbow English
Cider), Sapporo and Pilsner Urquell, and provides contract production for Japan’s Sapporo Breweries’ products.