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 Reports Third Quarter Profits on Increased Revenue

MINNEAPOLIS, November 1, 2004 - Granite City Food & Brewery Ltd. (Nasdaq: GCFB) today reported net income of $221,059 on revenues of $9,279,191 for the third quarter ended September 26, 2004, resulting in earnings per share of $0.03.

For the quarter ended September 26, 2004, total revenue was $9,279,191 compared to $3,786,885 for the third quarter of 2003. The Company reported net income of $221,059, or $0.03 per share for the quarter ended September 26, 2004, compared to a net loss of ($431,510), or ($0.15) per share for the third quarter of 2003.

"We are very excited about the results of our third quarter performance -- strong revenues, profits and cash flow from operations," said Steve Wagenheim, Granite City Food & Brewery's President and CEO. "We ended the summer season strong with all units filled to capacity both indoors and on our outdoor patios, further validating our belief that we are volume leaders in each of our markets." "Fresh on the heels of our strongest quarter to date," Wagenheim said, "we are utilizing the proceeds from our private placement to continue our aggressive expansion including four new units in 2005, six new units in 2006 and eight additional units in 2007. We are looking forward to the opportunity to introduce the Granite City concept to new markets and to expand our presence in existing markets."

For the thirty-nine weeks ended September 26, 2004, total revenue was $23,197,994 compared to $9,768,071 for the same period last year. The Company reported a net loss of ($451,333), or ($0.24) per share for the three quarters ended September 26, 2004 compared to a net loss of ($837,221), or ($0.33) per share for the same period one year ago.

With declarations of preferred stock dividends valued at $108,710, the Company's net income available to common shareholders was $112,349 for the third quarter of 2004, while declaration of preferred stock dividends valued at $168,854 resulted in a net loss available to common shareholders of ($600,364) for the same period in 2003. The preferred stock dividends declarations of $564,526 and $433,935 in the first three quarters of 2004 and 2003, respectively, resulted in a net loss available to common shareholders of ($1,015,859) and ($1,271,156) in the first three quarters of 2004 and 2003, respectively.

Wagenheim said the company is currently finalizing negotiations on five proposed new sites in the Midwest.

Granite City Food & Brewery Ltd. currently operates eight 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. Subsequently, the Company opened restaurants in Sioux Falls, SD, Fargo, ND, West Des Moines, IA, Cedar Rapids, IA, Davenport, IA, Lincoln, NE and Minneapolis, MN.

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 28, 2003 as filed with the Securities and Exchange Commission.

-financial statements follow

GRANITE CITY FOOD & BREWERY LTD. CONDENSED STATEMENTS OF OPERATIONS

	Thirteen Weeks Ended			Thirty-nine Weeks Ended
	September 28, 2003	September 26, 2004		September 28, 2003	September 26, 2004
Restaurant Revenues	$3,786,885	$9,279,191		$9,768,071	$23,197,994
Cost of Sales:
Food, beverage, & retail	1,094,291	2,819,515		2,822,489	7,029,332
Labor	1,274,087	3,096,410		3,320,948	7,666,094
Direct and Occupancy	804,760	1,710,215		2,121,687	4,357,408
Total Cost of Sales	3,173,138	7,626,140		8,265,124	19,052,834
Pre-opening	270,729	-		270,729	748,323
General & Administrative	449,833	619,888		1,156,256	1,813,950
Depreciation & amortization	206,276	463,263		596,471	1,178,273
Operating loss	(313,091)	569,900		(520,509)	404,614
Interest:
Income	15,266	749		62,148	4,941
Expense	(133,685)	(326,070)		(378,860)	(837,368)
Other expense, net	-	(23,520)		-	(23,520)
Net other expense	(118,419)	(348,841)		(316,712)	(855,947)
Net income (loss)	(431,510)	221,059		(837,221)	(451,333)
Less preferred stock dividends declared	(168,854)	(108,710)		(433,935)	(564,526)
Net income (loss) available to common shareholders	($600,364)	($112,349 )		($1,271,156)	($1,015,859)
Income (loss) per common share, basic	($0.15)	$0.03		($0.33)	($0.33)
Income (loss) per common share, diluted	($0.15)	$0.02		($0.33)	($0.24)
Weighted average shares outstanding, basic	3,947,700	4,378,774		3,888,038	4,261,048
Weighted average shares outstanding, diluted	3,947,700	9,296,411		3,888,038	4,261,048

BALANCE SHEET DATA SEPTEMBER 26, 2004:

Current Assets	$2,692,762
Total assets	25,118,915
Current liabilities	3,131,163
Total liabilities	17,578,414
Shareholders' equity	7,540,501

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