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 2nd Quarter 2003 Results

MINNEAPOLIS, August 8, 2003 - Granite City Food & Brewery Ltd. (Nasdaq: GCFB) today reported the results of operations for the second quarter of 2003.

For the quarter ended June 29, 2003, total revenue was $3,111,026 compared to $3,162,279 for the second quarter of 2002. The Company reported a net loss of ($221,089), or ($0.10) per share for the quarter ended June 29, 2003, compared to net income of $5,175, or nil per share for the second quarter of 2002.

For the twenty-six weeks ended June 29, 2003, total revenue was $5,981,186 compared to $6,276,619 for the same period last year. The Company reported a net loss of ($405,711), or ($0.17) per share for the two quarters ended June 29, 2003 compared to a net loss of ($24,494), or ($0.01) per share for the same period one year ago.

"Although our revenues were down a bit without a 'honeymoon' period in the first half of 2003, we anticipate our revenues will continue to increase throughout the remainder of the patio season as they did in June and July," said Steve Wagenheim, Granite City Food & Brewery's President and CEO. Since the first of the year we have been adding personnel at the corporate level in order to prepare for our aggressive expansion. Although that has had a negative effect on our bottom line, we believe it will more than pay for itself with successful new restaurant openings." Wagenheim added, "We are very excited about the opening of our Des Moines, Iowa restaurant September 2nd. The market has great potential for us and we are looking forward to being part of the community. Additionally, with the opening of our Des Moines restaurant in September and our Cedar Rapids, Iowa restaurant in November, we are looking forward to a very strong second half of 2003."

Wagenheim said the company plans to open a Granite City Food & Brewery® in Davenport in January 2004 and continues to negotiate sites in Minnesota and Nebraska.

Granite City Food & Brewery Ltd. currently operates three Granite City Food & Brewery 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 29, 2002 as filed with the Securities and Exchange Commission.

-financial statements follow


GRANITE CITY FOOD & BREWERY LTD. CONDENSED STATEMENTS OF OPERATIONS (unaudited)

	Thirteen Weeks Ended			Twenty-six Weeks Ended
	June 30, 2002	June 29, 2003		June 30, 2002	June 29, 2003
Restaurant Revenues	$3,162,279	$3,111,026		$6,276,619	$5,981,186
Cost of Sales:
Food and beverage	908,625	909,316		1,815,378	3,520,107
Labor	1,076,435	1,061,028		2,151,562	2,046,861
Direct and occupancy	629,289	653,660		1,293,004	1,316,927
Total cost of sales	2,614,349	2,624,004		5,259,944	5,091,986
General and Administrative	203,977	412,806		419,398	706,423
Depreciation and amortization	191,535	197,159		382,320	390,195
Operating income (loss)	152,418	(122,943)		214,957	(207,418)
Interest
Income	312	23,581		470	46,882
Expense	(132,722)	(121,727)		(272,275)	(245,175)
Other income, net	(14,833)	-		32,354	-
Net other expense	(147,243)	(98,146)		(239,451)	(198,293)
Net income, (loss)	$5,175	($221,089)		($24,494)	($405,711)
Earnings (loss) per common share	$0.00	($0.10)		($0.01)	($0.17)
Earnings (loss) per common share, assuming dilution	$0.00	($0.10)		($0.01)	($0.17)
Weighted average shares outstanding	3,809,116	3,871,101		3,808,255	3,858,208
Weighted average shares outstanding, assuming dilution	3,882,238	3,871,101		3,808,255	3,858,208

BALANCE SHEET DATA JUNE 29, 2003:

Current Assets	$3,691,640
Total assets	13,638,119
Current liabilities	1,280,151
Total liabilities	6,265,164
Shareholders' equity	7,372,955

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