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. Reports 2002 Results of Operations
Annual Revenues Increase 38% over 2001

MINNEAPOLIS, March 25, 2003 - Granite City Food & Brewery Ltd. (Nasdaq: GCFB) today reported its results of operations for the fourth quarter and year ended December 29, 2002.

For the year ended December 29, 2002, total revenue grew 38% to $12,286,749 compared to $8,885,036 for the year ended December 30, 2001. The increase in revenues was due principally to the addition of the Company's third restaurant, which opened in Fargo, North Dakota, on November 20, 2001. The Company reported a net loss of ($216,217), or ($0.08) per share for fiscal year 2002 compared to a net loss of ($428,020), or ($0.11) per share for fiscal year 2001.

For the fourth quarter ended December 29, 2002, total revenue grew to $2,850,296 compared to $2,534,893 for the fourth quarter of 2001. The Company reported a net loss of ($168,533), or ($0.06) per share for the fourth quarter of 2002, compared to a net loss of ($328,898), or ($0.09) per share for the fourth quarter of 2001.

"We are happy with our increased sales and are particularly pleased to see our earning per share headed in the right direction," said Steve Wagenheim, Granite City Food & Brewery's President and CEO. "We cut our loss per common share from $0.11 to $0.08 during 2002. Although our income from restaurant operations was down slightly in the fourth quarter due to labor associated with gearing up for our expansion, we feel the extra cost we incur now will be money well spent as we open our next three restaurants in less than a year."

Wagenheim said the company has begun construction in West Des Moines, Iowa where it plans to open a Granite City Food & Brewery® this summer. The company's developer, The Dunham Company, has purchased sites in Cedar Rapids and Davenport, Iowa where the company is scheduled to open in the fall of 2003 and the first quarter of 2004, respectively.

Granite City Food & Brewery Ltd. currently operates three casual dining restaurants featuring made-from-scratch food and handcrafted beers. Its broad menu offers traditional and regional foods served in generous portions at reasonable prices, affording guests an excellent value and great dining experience. Its first Granite City location, in St. Cloud, MN, opened in June 1999. The Company's second location opened in Sioux Falls, SD, in December 2000, and the third location opened in November 2001 in Fargo, ND.

Certain statements made in this press release of a non-historical nature constitute "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated. Such factors include, but are not limited to, changes in economic conditions, changes in consumer preferences or discretionary consumer spending, a significant change in the performance of any existing units, the ability to obtain additional financing for, and complete construction of, additional restaurants at acceptable costs, our ability to implement and execute Fermentus InterruptusT and the risks and uncertainties described in the Company's Form 10-KSB Report for the year ended December 30, 2001 as filed with the Securities and Exchange Commission.

-financial statements follow


GRANITE CITY FOOD & BREWERY LTD. CONDENSED STATEMENTS OF OPERATIONS

	Thirteen Weeks Ended			Year Ended
	December 30, 2001	December 29, 2002		December 30, 2001	December 29, 2002
Restaurant Revenues	$2,534,893	$2,850,296		$8,885,036	$12,286,749
Restaurant Costs:
Food and beverage	704,384	808,989		2,586,800	3,520,107
Labor	856,077	994,566		2,948,245	4,192,970
Direct and occupancy	550,516	657,079		1,876,572	2,612,019
Total restaurant costs	2,110,977	2,460,634		7,411,617	10,325,096
Income from Restaurant Operations	423,916	389,662		1,473,419	1,961,653
Pre-opening Costs	209,938	-		228,358	-
General and Administrative	230,588	250,874		767,473	924,652
Depreciation and amortization	176,204	192,478		528,302	766,851
Operating income (loss)	(192,814)	(53,690)		(50,714)	270,150
Interest
Income	755	11,848		30,600	12,335
Expense	(130,825)	(126,690)		(401,892)	(531,056)
Other income, net	(6,014)	(1)		(6,014)	32,354
Net other expense	(136,084)	(114,843)		(377,306)	(486,367)
Net Loss	($328,898)	($168,533)		($428,020)	($216,217)
Loss per common share, basic and diluted	($0.09)	($0.06)		($0.11)	($0.08)
Weighted average shares outstanding, basic and diluted	3,807,350	3,825,133		3,807,350	3,815,36

BALANCE SHEET DATA DECEMBER 29, 2002:

Current Assets	$3,521,842
Total assets	$13,147,164
Current liabilities	1,510,165
Total liabilities	6,649,138
Shareholders' equity	6,498,026

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