Molson Inc. (TSE: MOL.A) announced today earnings for the first quarter ending June 30, 2000.

Molson First Quarter Highlights
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- Earnings from continuing operations up 49% to $32.5 million
- Earnings per share from continuing operations increases 49% to $0.55 from $0.37 per share
- Revenue for the quarter increases 4% to $697.5 million
- Brewing operating profit up 15.5%
- Estimated Brewing National Market Share increases 0.2 share points to 45.0%
- Cash flow from continuing operations increases 9% to $70.3 million
- Cash flow per share from continuing operations increases 9% from $1.09 to $1.19 per share

For the first quarter ending June 30, 2000, earnings from continuing operations were $32.5 million, a 49% increase from $21.8 million for the same period last year. Earnings per share from continuing operations for the first quarter increased 49% to $0.55 per share from $0.37 per share in fiscal year 2000. Excluding the benefit of NHL expansion proceeds, net earnings from continuing operations for the quarter increased by 41% to $26.2 million or $0.44 per share compared to 18.6 million, and $0.31 per share in fiscal 2000. Revenues for the quarter increased 4% to $697.5 million compared to $673.7 million for the first quarter of fiscal year 2000.
Cash flow from continuing operations, before working capital adjustments, was $70.3 million for the first quarter ended June 30, 2000, an increase of 9% compared to the same period last year. Cash flow per share from continuing operations was $1.19, compared to $1.09 for the prior year.

Despite the total beer industry sales volume decline of 1.4%, Molson volume outperformed the category by declining only 1% resulting in an estimated national share increase for the first quarter of 0.2 share points to 45.0%. Brewing operating profit increased by 15.5%, exceeding Molson's EBIT growth commitment.

"This is a great way to start off the new fiscal year," said Daniel J. O'Neill, President and Chief Executive Officer of Molson. "Even with the category decline we have shown an increase in net sales, operating profit and market share. Our cost savings plan of $120 million is on track. The core Canadian brewing operation continues to improve allowing us to focus on our US operations and our international brewing strategy. We are positioning Molson for future sustainable growth for the benefit of our shareholders," he added.

The strong first quarter earnings are the result of Molson's commitment to the reinvention of the Company along four strategic long-term business objectives: aligning the interests of employees with shareholders, establishing a strategic business focus, reducing the cost base while improving productivity, and profitable growth.

As part of its ongoing commitment to growing its market share in Canada, Molson announced in the first quarter that the Company regained control of its brands in the Maritime Provinces. The new agreement with Moosehead will allow for the brewing, bottling, and distribution of the Molson brands in the Maritime Provinces by the Moosehead Brewery in Saint John, New Brunswick, while Molson controls all sales and marketing. Molson will significantly increase its Maritime sales and marketing team as well as brand activity throughout the region with a strong brand portfolio including Molson Canadian, Molson Export, Molson Dry, Coors Light, Miller and leading imports Corona and Heineken.

During the first quarter, Molson also announced its intention to sell a controlling interest in the Montreal Canadiens Hockey Club and the Molson Centre. The process to identifying a controlling shareholder is proceeding and a transaction is expected to be completed within six months.

The Board of Directors declared a dividend of $0.18 per share on the Class "A" non-voting shares and the Class "B" common shares. This dividend is payable on October 1, 2000 to shareholders of record at the close of business on September 14, 2000.

Montreal-based Molson is Canada's pre-eminent brewer with more than $2 billion in annual sales. Founded in 1786, Molson is North America's oldest beer brand and a global brand name with products that include Molson Canadian, Molson Export, Molson Dry, and Rickard's Red.


OVERVIEW

($ millions, except per share amounts)
Three months ended June 30 2000 1999
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Sales and other revenues(i) 697.5 673.7
Brewing excise and sales taxes 170.9 171.3
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526.6 502.4
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Earnings before interest, income
taxes and amortization (EBITDA)(i) 102.2 87.9

Amortization of property, plant
and equipment 16.5 16.6
Amortization of intangible assets 9.4 8.7
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Earnings before interest and
income taxes (EBIT) (i) 76.3 62.6
Net interest expense 18.3 20.0
Income taxes 25.5 20.8
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Net earnings from continuing
operations 32.5 21.8
Net earnings from discontinued
operations - 0.8
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Net earnings 32.5 22.6
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Basic net earnings per share
Continuing operations 0.55 0.37
Discontinued operations - 0.01
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Total 0.55 0.38
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Cash flow from continuing
operations 70.3 64.3
Cash flow per share from
continuing operations 1.19 1.09
Dividends per share 0.18 0.18

Outstanding shares (millions)(ii) 59.3 59.1
Fully-diluted shares outstanding(ii) 62.1 61.9
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(i) Includes NHL expansion proceeds of $9.0 million in the current
quarter and $4.5 million for the comparable period last year.
(ii) Weighted average number of outstanding Class "A" non-voting
shares and Class "B" common shares.



REVIEW OF OPERATIONS

The following tables summarize the sales and other revenues, EBITDA and
EBIT of the Corporation's two business segments -- Brewing, and Sports
and Entertainment -- as well as the net costs of operating the public
company and other items not allocated to the business segments.


SALES AND OTHER REVENUES

($ millions)

Three months ended June 30 2000 1999
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Brewing 678.1 661.2
Excise and sales taxes 170.9 171.3
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507.2 489.9
Sports and Entertainment(i) 19.3 12.4
Other 0.1 0.1
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526.6 502.4
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EBITDA EBIT
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($ millions)

Three months ended June 30 2000 1999 2000 1999
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Brewing 105.6 94.0 82.0 71.0
Sports and Entertainment(i) 3.5 (1.5) 1.3 (3.7)
Other (6.9) (4.6) (7.0) (4.7)
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102.2 87.9 76.3 62.6
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(i) Includes expansion proceeds of $9.0 million (three months ended
June 30, 1999 - $4.5 million).


BREWING

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($ millions)
Three months ended June 30 2000 1999 Change
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Sales and other revenues 678.1 661.2 2.6%
Brewing excise and sales taxes 170.9 171.3 (0.2%)
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507.2 489.9 3.5%
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Earnings before interest,
income taxes and amortization 105.6 94.0 12.3%
Amortization of property, plant and
equipment 14.3 14.4 (0.7%)
Amortization of intangible assets 9.3 8.6 8.1%
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Earning before interest and
income taxes (EBIT) 82.0 71.0 15.5%
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SPORTS AND ENTERTAINMENT

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($ millions)
Three months ended June 30 2000 1999 Change
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Sales and other revenues 19.3 12.4 55.6%
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Loss before interest, income taxes,
amortization and expansion proceeds (5.5) (6.0) (8.3%)

Amortization of property, plant and
equipment 2.1 2.1 -
Amortization of intangible assets 0.1 0.1 -
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Operating loss from hockey operations and
Molson Centre activities before expansion
proceeds (7.7) (8.2) (6.1%)
Expansion proceeds 9.0 4.5 100.0%
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Earnings (loss) before interest
and income taxes 1.3 (3.7) n/m
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n/m equals not meaningful



MOLSON INC.

CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED

($ millions, except per share amounts)
Three months ended June 30 2000 1999
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Sales and other revenues $ 697.5 $ 673.7
Brewing excise and sales taxes 170.9 171.3
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526.6 502.4

Cost of sales, selling and administrative costs 424.4 414.5
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Earnings before interest, income taxes 102.2 87.9
and amortization
Amortization of property, plant and equipment 16.5 16.6
Amortization of intangible assets 9.4 8.7
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Earnings before interest and income taxes 76.3 62.6
Net interest expense 18.3 20.0
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Earnings before income taxes 58.0 42.6
Income taxes 25.5 20.8
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Net earnings from continuing operations 32.5 21.8
Net earnings from discontinued operations - 0.8
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Net earnings $ 32.5 $ 22.6
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Net earnings per share from continuing
operations $ 0.55 $ 0.37

Net earnings per share $ 0.55 $ 0.38
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MOLSON INC.

CONSOLIDATED STATEMENTS OF RETAINED EARNINGS - UNAUDITED

($ millions)
2000 1999
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Retained earnings at end of prior year $ 557.1 $ 643.8

Charge against retained earnings as a result
of implementation of new accounting rules (320.0) -
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Retained earnings at beginning of year $ 237.1 $ 643.8

Net earnings for the current period 32.5 22.6

Dividends (10.7) (10.7)
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Retained earnings at June 30 $ 258.9 $ 655.7
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MOLSON INC.

CONSOLIDATED BALANCE SHEETS - UNAUDITED
($ millions)
As at June 30 2000 1999
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Assets
Current assets
Cash and short-term investments $ 30.8 $ 28.8
Accounts receivable 218.9 218.0
Inventories 142.3 139.3
Prepaid expenses 43.5 68.6
Current assets of discontinued operations 15.8 162.0
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451.3 616.7

Investments and other assets 157.6 252.1
Property, plant and equipment 1,070.5 1,201.8
Intangible assets 1,389.2 1,301.8
Non-current assets of discontinued operations 27.7 104.2
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$ 3,096.3 $ 3,476.6
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Liabilities
Current liabilities
Bank indebtedness $ 37.0 $ 9.8
Accounts payable and accruals 306.1 285.4
Provision for rationalization costs 91.0 33.9
Taxes payable 128.8 139.7
Dividends payable 10.7 10.6
Deferred income taxes 16.6 35.9
Current liabilities of discontinued operations 5.9 145.1
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596.1 660.4
Long-term debt 1,111.7 1,283.8
Deferred gain 55.4 61.5
Deferred liabilities 136.0 95.7
Deferred income taxes 411.9 131.9
Non-current liabilities of discontinued operations 56.8 121.6
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2,367.9 2,354.9

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Shareholders' equity
Capital stock 469.5 466.0
Retained earnings 258.9 655.7
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728.4 1,121.7
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$ 3,096.3 $ 3,476.6
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MOLSON INC.

CONSOLIDATED CASH FLOW STATEMENTS - UNAUDITED

($ millions)
Three months ended June 30 2000 1999
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Operating activities
Net earnings from continuing operations $ 32.5 $ 21.8
Amortization of property, plant and equipment 16.5 16.6
Amortization of intangible assets 9.4 8.7
Deferred income taxes 15.3 19.7
Other (3.4) (2.5)
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Cash provided from operations 70.3 64.3
Used for working capital (24.2) (65.7)
Rationalization costs (6.4) (10.5)
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Cash provided from (used for) operating activities 39.7 (11.9)
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Investing activities
Additions to property, plant and equipment (6.2) (6.3)
Additions to investments and other assets (4.6) (3.7)
Proceeds from disposal of investments and
other assets 4.2 4.9
Other (6.2) -
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Cash used for investing activities (12.8) (5.1)
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Financing activities
Increase in long-term debt - 300.0
Reduction in long-term debt (50.4) (290.9)
Cash dividends paid (9.7) (9.0)
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Cash provided from (used for) financing
activities (60.1) 0.1
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Decrease in net cash from continuing operations (33.2) (16.9)
Increase (decrease) in net cash from
discontinued operations 1.8 (5.1)
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Decrease in net cash (31.4) (22.0)
Net cash, beginning of period 25.2 42.5
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Net cash (bank overdraft), end of period $ (6.2) $ 20.5
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Net cash (bank overdraft) consists of:
Cash and cash equivalents $ 30.8 $ 28.8
Bank overdraft (37.0) (9.8)
Cash and cash equivalents of discontinued
operations - 1.5
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Net cash (bank overdraft), end of period $ (6.2) $ 20.5
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