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MINNEAPOLIS, September 26, 2006 - Granite City Food & Brewery Ltd. (Nasdaq Capital Market: GCFB) announced that is has entered into a $16 million equipment lease facility with DHW Leasing, L.L.C. ("DHW"), relating to the lease of furniture, fixtures and equipment for future restaurants. Granite City intends to use the lease facility to equip future restaurant locations for anticipated growth in 2007 and 2008.
"This financing package creates a path to profitability and the opportunity to pass the $100 million revenue mark next year allowing us the flexibility to self-fund our growth. These important milestones were an initial goal of the company and demonstrate the national scaling of the Granite City concept," commented Steve Wagenheim, Granite City's CEO and president.
This equipment lease facility represents one of the key elements of the company's continuing development plan for 2007. It follows the company's successful opening of its latest restaurant in St. Louis Park, a suburb of Minneapolis. The Company has plans to open three additional restaurants in the fourth quarter of 2006.
Donald Dunham, managing member of DHW Leasing, L.L.C., said, "We believe that Granite City is well positioned to be the leader in the upscale casual dining market and the company has demonstrated its ability to grow and meet its strategic goals. We are very delighted to support Granite City as it moves forward with its growth initiatives." Payments due DHW will be based on a five-year amortization of the purchase price with interest equal to the DHW bank base rate plus a blended 5.4% rate.
"The success of our strategic plan and the strength of the Granite City brand has allowed us to complete this key lease facility which will aid us in executing our growth plan into 2007 and 2008," commented Steve Wagenheim.
Granite City Food & Brewery Ltd. currently operates 15 Granite City Food & Brewery upscale casual dining restaurants featuring a broad menu of popular made-from-scratch food items 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. The first Granite City restaurant opened in St. Cloud, MN in June 1999 and the Company subsequently expanded to other Midwest markets. The Company also operates a beer production facility which is used to provide raw material support to its restaurants to create operational efficiencies.
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 financing for, and complete construction of, additional restaurants at acceptable costs, our ability to implement and execute Fermentus Interruptus and the risks and uncertainties described in the Company's Annual Report on Form 10-KSB filed with the Securities and Exchange Commission on March 27, 2006.
CONTACT:
Peter Hausback
Chief Financial Officer
(952) 215-0660
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