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 3rd Quarter 2002 Results Revenues Increase 43% Over 3rd Quarter 2001

MINNEAPOLIS, November 12, 2002 - Granite City Food & Brewery Ltd. (Nasdaq: GCFB) today reported its results of operations for the third quarter of 2002.

For the quarter ended September 29, 2002, total revenue grew 43% to $3,159,837 compared to $2,217,228 for the third quarter of 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 ($23,195), or ($0.01) per share for the quarter ended September 29, 2002, compared to a net loss of ($70,628), or ($0.02) per share for the third quarter of 2001.

For the thirty-nine weeks ended September 29, 2002, total revenue grew 49% to $9,436,453 compared to $6,350,143 for the same period last year. The Company reported a net loss of ($47,684), or ($0.01) per share for the three quarters ended September 29, 2002 compared to a net loss of ($99,122), or ($0.03) per share for the same period one year ago.

"As our revenues continue to grow, we are very pleased with the growth we have seen in income from restaurant operations as well as operating income," said Steve Wagenheim, Granite City Food & Brewery's President and CEO. "Our total restaurant costs and our corporate overhead continue to decrease as a percent of revenue due to our increased purchasing power and the greater economies of scale afforded us through the operation of multiple units. We are excited about the expansion strategy we intend to pursue as we believe it will enable us to continue to reduce our costs as a percent of revenue, thereby further increasing our gross profit and operating income."

Granite City Food & Brewery Ltd. 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 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 Form 10-KSB Report for the year ended December 30, 2001 as filed with the Securities and Exchange Commission.

-financial statements follow


FOUNDERS FOOD & FIRKINS LTD CONDENSED STATEMENTS OF OPERATIONS (unaudited)

	Thirteen Weeks Ended			Thirty-nine Weeks Ended
	September 30, 2001	September 29, 2002		September 30, 2001	September 29, 2002
Restaurant Revenues	$2,217,228	$3,159,837		$6,350,143	$9,436,453
Restaurant Costs:
Food and beverage	645,667	895,748		1,882,416	2,711,118
Labor	732,908	1,046,846		2,092,168	3,198,404
>Direct and occupancy	468,424	661,931		1,326,056	1,954,940
Total restaurant costs	1,846,999	2,604,525		5,300,640	7,864,462
Income from Restaurant Operations	370,229	555,312		1,049,503	1,571,991
Pre-opening Costs	18,420	-		18,420	-
General and Administrative	206,050	254,380		536,885	673,778
Depreciation and amortization	119,420	192,053		352,098	574,373
Operating income	26,339	108,879		142,100	323,840
Interest
Income	4,472	17		29,845	487
Expense	(101,439)	(132,091)		(271,067)	(404,366)
Other income, net	-	-		-	32,355
Net other expense	(96,967)	(132,074)		(241,222)	(371,524)
Net Loss	($70,628)	($23,195)		($99,122)	($47,684)
Loss per common share, basic and diluted	($0.02)	($0.01)		($0.03)	($0.01)
Weighted average shares outstanding, basic and diluted	3,807,350	3,819,825		3,807,350	3,812,108

BALANCE SHEET DATA SEPTEMBER 29, 2002:

Current Assets	$ 402,297
Total assets	$10,117,750
Current liabilities	1,674,098
Total liabilities	6,889,936
Shareholders' equity	3,227,814

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