Pyramid Breweries Inc. (Nasdaq:PMID) today announced its Board of Directors has declared a quarterly cash dividend of $.04 per common share, payable on July 14, 2000 to shareholders of record on June 30, 2000.

In December, the company initiated a stock buyback plan to repurchase up to $2 million worth of Pyramid's outstanding common stock from time to time on the open market. To date, the company has repurchased 368,400 of its common shares.

"Paying a cash dividend is one of the most tangible ways we can demonstrate our Board's confidence in Pyramid's future prospects, as well as improve returns for Pyramid shareholders," said Martin Kelly, President and Chief Executive Officer. Reflecting growth in restaurant patronage and higher soda sales, Pyramid recently reported first quarter net sales increased 5% to $6.2 million -- the sixth consecutive quarter in which the company showed sales gains over the prior year. The company also reported an 85% increase in EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter.

"Operating efficiency is improving and our assets and investments are being used more productively," Kelly added. "We are confident Pyramid has the financial capacity to fund any opportunities that may fit our strategy of growing our beer and soda portfolio, as well as expanding our Alehouse Division. In addition, improving the company's cost structure remains one of our primary goals."

Pyramid Breweries Inc. is a leading brewer of specialty, full-flavored beers and sodas. The company brews more than 20 styles of ales and lagers under its Pyramid Ales and Thomas Kemper Brewing Company brands as well as four styles of old-fashioned sodas under the Thomas Kemper Soda Company label. Pyramid operates two local breweries and two restaurants, the Pyramid Alehouse in Seattle, Washington and the Pyramid Alehouse in Berkeley, California. For more information, visit www.PyramidBrew.com.

Statements concerning future performance, developments or events constitute forward-looking statements that are subject to a number of risks and uncertainties, which are described in the company's filings with the Securities & Exchange Commission, press releases and other communications. Actual events and results may differ materially from stated expectations.