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MINNEAPOLIS - February 13, 2002 - Founders Food & Firkins Ltd. (Nasdaq: GCFB) today reported that it was notified by NASD Dispute Resolution, Inc., that it received an award of $75,000 against Equity Securities Investments, Inc. as compensatory damages and that a counterclaim against the Company by Equity Securities was denied. The award relates to a claim by the Company against Equity Securities for wrongfully terminating the Company's stock offering in early 2000. The Company alleged various claims against Equity Securities, including a breach of its agreement to underwrite the Company's securities, misrepresentations concerning its commitment to proceed with the stock offering, fraud and deceptive trade practices. Following the termination of the offering, the Company engaged RJ Steichen & Company as its underwriter and completed the offering of its securities in June 2000.
Steven J. Wagenheim, chief executive officer, commented: "We are extremely pleased with the award and the denial of Equity's claim against us. Equity Securities and its officer, Larry Zipkin, almost destroyed our financing and caused us to substantially increase our transaction costs. We were fortunate to have recovered from that sad event and continue to build our Company."
Founders Food & Firkins Ltd. operates casual dining restaurants under the name "Granite City Food & Brewery™." The Company operates full-service restaurants in St. Cloud, Minnesota, Sioux Falls, South Dakota and Fargo, North Dakota. Each restaurant includes an on-premise brewery offering handcrafted beers and a broad menu of items prepared fresh daily.
CONTACT:
Steven J. Wagenheim
President and Chief Executive Officer
(952) 525-2070
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