SLEEMAN RETRACTS EARLIER PRICING PROJECTIONS

Sleeman Breweries, the third largest in Canada, warned that 2005 profits may not be up to what they originally projected, blaming the difference on competitive pricing. They initially thought earnings per share would fall somewhere in the $0.81 to $0.85 range but now expect it to be between $0.60 and $0.64. "The industry experienced compressed margins during the quarter, most notably in the province of Quebec. On a positive note, Sleeman market share and volumes remained consistent with prior year levels in the face of this pricing environment," said John Sleeman, Chairman and chief of the brewery. He maintained that Sleeman would continue to “look for additional cost reductions” and “focus on the premium beer category.”