Mendocino Brewing Co. Inc. acquires British Corporation.

August 13, 2001 --

Ukiah, CA, August 13th, 2001 - Mendocino Brewing Company, "MBR"-pacific ("Mendocino") announced today that it has acquired United Breweries International (UK) Limited, a British corporation, along with its wholly-owned operating subsidiary UBSN Ltd. ("UBSN"), in exchange for 5,500,000 shares of Mendocino’s common stock.

UBSN was formed in August of 1989 and is the sole distributor of Kingfisher Premium Lager Beer ("Kingfisher") in the U.K., Ireland, Continental Europe, the United States and Canada. It is a profitable Company with revenues for the year ending December 31, 2000 of $ 12,643,600 and Net Income for the same period of $ 411,900.

As a result of the acquisition, Mendocino will benefit from the consistent financial strength of UBSN and have the exclusive right to brew and distribute Kingfisher in the United States and Canada. The Kingfisher brand has been sold in the United States, primarily to the Indian restaurant community since 1988.

Kingfisher is an international brand currently distributed in over 40 countries. It is a two time World Champion Lager, winning at the World Beer Championships at Stockholm, Sweden. Over the last several years, Kingfisher has consistently been ranked among the fastest growing beer brands in the United Kingdom.

Dr. Vijay Mallya, Mendocino’s Chairman and CEO, stated, "The strategic benefits to Mendocino, resulting from the acquisition are significant. Mendocino has now become international in scope, with a very strong distribution presence in both the United States and Europe. Also, we have a firm belief that the winning combination of Red Tail Ale and Kingfisher Premium Lager Beer will enhance our portfolio of brands and fuel our consumers enthusiasm for Mendocino Brewing Company and our brands".

The combined companies of Mendocino and UBSN, on a pro forma consolidated basis for the period ending December 31, 2000 would have combined revenues of approximately $ 21,899,500 and a net loss of approximately $456,000, after consideration of acquisition costs.

Mendocino Brewing Company has historically brewed four ales and a stout year-round, and a seasonal porter. The brands include Red Tail Ale, Blue Heron Pale Ale, Eye of the Hawk Select Ale, Black Hawk Stout, Peregrine Golden Ale. The Corporation's common stock is publicly traded on the Pacific Stock Exchange under the symbol "MBR."

For More Information Contact:
Sarah McDaniel:1-800-733 3871