April 17, 1997; Portland, OR – Widmer Brothers Brewing Co. and Anheuser-Busch, Inc. today announced that they have signed a letter of intent to form a distribution and equity alliance between the two companies.

Under the letter, Widmer products will be distributed exclusively through Anheuser-Busch, Inc. wholesalers in all new U.S. markets entered by Widmer. Additionally, Widmer anticipates that its existing distribution network will be converted to the Anheuser-Busch wholesaler system through a transition plan to be implemented by Widmer in the coming months. Anheuser-Busch will make a minority equity investment in Widmer; however, Widmer Brothers will remain an independent company retaining total control over its brewing and marketing activities.

"Since our company's inception, we've actively sought out ways in which we can ensure the quality and freshness of our products as we grow and expand," says Kurt Widmer, president of Widmer Brothers Brewing Co. "This agreement with Anheuser-Busch enables us to make our brands available in a fresh and consistent manner to our customers by being able to tap in to the finest distribution system in the industry. We think our customers will appreciate our focus on quality and we're thankful for their tremendous support."

"We're quite pleased to partner with a company which, like us, is known for its quality and brewing excellence," said David English, Anheuser-Busch vice president. "This agreement enables our wholesaler system to offer an extensive range of beers that fulfill the diverse preferences of today's beer consumer."

Founded in 1984, Widmer Brothers Brewing Company – previously the Western Hemisphere's largest draught-only brewer – is one of the leading craft brewers in the United States. Headquartered in the Pacific Northwest, the company opened its state-of-the-art $24-million brewery and bottling plant in the spring of 1996, making available in bottles America's Original Hefeweizen¨, Amberbier, Widberry and Blackbier. In addition, Widmer continues to develop new craft beers, seasonal beers and unique beverages. Currently, Widmer products are distributed in 17 states, including California, Oregon and Washington.

Anheuser-Busch is the world's largest brewer and maintains a sophisticated distribution system involving nearly 900 wholesalers nationwide. The new alliance with Widmer will further strengthen Anheuser-Busch and its wholesalers' involvement in the specialty beer category, which includes a distribution alliance with Redhook Ale Brewery, a Seattle-based craft brewer, and Anheuser-Busch's own Red Wolf Lager, American Originals Faust, American Hop Ale and Black & Tan, Ziegenbock, Pacific Ridge Pale Ale and the new Michelob Specialty Ales and Lagers.

The specialty/craft segment is one of the fastest growing in the brewing industry. It has enjoyed considerable growth in the past several years, and recorded an increase of 35-percent in 1996.

Contact: Greg Jackson, Metropolitan Group, 503.223.3299