VANCOUVER, British Columbia, May 30, 2007 – Russell Breweries Inc. (TSX.V:RB) a premium craft brewery based in Surrey British Columbia report its un-audited consolidated results for the three months and nine months ended March 31, 2007.

Net revenues for the three months ended March 31, 2007 were $338,969 up 85.7% from net revenues of $182, 487 (restated) for the three months ended March 31, 2006. Net revenues for the nine months ended March 31, 2007 were $864,085 (restated) up 38.1% compared to $625,733 (restated) for the nine months ended March 31, 2006.

Effective January 1, 2007 the Company made a change in accounting policy to reclass portions of gross sales, net sales, cost of goods sold, gross margin and selling, general and administration expense on a retroactive basis. These reclasses change classifications for the three and nine months ended March 31, 2006 but they do not change previously reported net loss or deficit. In addition due to an error of recording of sales in the nine months ended March 31, 2006, a prior period adjustment of $63,237 has been recorded in the nine months ended March 31, 2007. In addition net revenues for the nine months ended March 31, 2006 and accounts receivable as at March 31, 2006 are reduced by $63,237.

Gross margin for the three months ended March 31, 2007 was $240,114 up 80.9% compared to $132,748 in the three months ended March 31, 2006. Gross margin for the nine months ended March 31, 2007 was $629,928 (restated) up 29% compared to $488,161 (restated) for the nine months ended March 31, 2006 reflecting the increase in net revenues.

Selling, general and administration expense for the three months ended March 31, 2007 increased $128,839 or 55.2% to $362,104 compared to $233,265 (restated) for the three months ended March 31, 2006. Selling, general and administration expense increased $432,329 or 92.2% to $1,196,743 (restated) compared to $622,647 (restated) for the nine months ended March 31, 2006 reflecting an in-progress brewery expansion, increased sales activity, migration from the CNQ to the TSX Venture Exchange and completion of a major financing, as well as non cash stock compensation expense of $86,976.

The Company incurred a net loss of $170,068 or $0.01 per share for the three months ended March 31, 2007 compared to the net loss of $142,870 (restated) or $0.01 (restated) per share in the three months ended March 31, 2006. The Company incurred a net loss of $695,824 (restated) in the nine months ended March 31, 2007. Increased net sales were offset by increased selling, general and administration expense.

Commenting on the quarter and nine months results Andrew Harris, President said “the 85% growth in the quarter over comparative 2006 quarter and 38% year to date growth over the comparative 2006 period were achieved against a back-drop of tremendous operating change and corporate activity. We are now well positioned to enter into our strong seasonal period which also includes the new BC Lions and BC Place contract.”

Russell Brewing Company produces premium draught beer for fine pubs and eateries located in British Columbia. In 2006, Russell was recognized as BC’s fastest growing brewery. Using all natural ingredients and traditional beer-making techniques, Russell beer is brewed for people who love beer. Products include: Russell Cream Ale, Russell Pale Ale, Russell Honey Blonde Ale, Russell Extra Special Lager plus two seasonal brews, Russell Lemon Ale and Russell Winter Porter. Russell Brewing Company is a wholly owned subsidiary of Russell Breweries Inc. (TSX.V: RB).

The Company’s complete interim consolidated financial statements for the three and nine months ended together with complete Management Discussion and Analysis will be available on SEDAR at www.sedar.com and on the Company’s web site at www.russellbeer.com.