Granite City Restaurant features a full Bar and Brewery and has a growing amount of Restaurant and Bar locations in Cedar Rapids, Clive, Creve Coeur, Davenport, Eagan, East Peoria, Fargo, Fort Wayne, Kansas City, Lincoln, Madison, Maple Grove, Olathe, Omaha, Orland Park, Rockford, Rogers, Roseville, Sioux Falls, St. Cloud, St. Louis Park, Toledo, West Wichita, Wichita, Indianapolis, and South Bend.

Granite City Food & Brewery Ltd. Coletes Sale of Preferred Stock and Warrants

MINNEAPOLIS, December 4, 2002 - Granite City Food & Brewery Ltd. announced today that on November 27, 2002 it sold an additional 6,184 shares of Series A Convertible Preferred Stock with warrants, completing its previously announced private placement.

Including the subscriptions payable in increments in December 2002 and March 2003, the company sold 55,600 shares of preferred stock for an aggregate of $5,560,000. The preferred stock is convertible into an aggregate of 3,518,965 shares of common stock at a conversion price of $1.58 per share. The preferred stock pays an 8% cumulative dividend in cash or in common stock of the company. The company may require conversion under certain circumstances. The preferred stock was sold with five-year warrants to purchase an aggregate of 1,759,475 shares of common stock at an exercise price of $1.58 per share.

The net proceeds from the offering will be used to develop additional Granite City Food & Brewery restaurants currently planned for Midwestern states.

The foregoing securities have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

CONTACT:
Steven J. Wagenheim
President and Chief Executive Officer
(952) 525-2070 or (612) 751-3331