Granite City Food & Brewery Ltd. Moves to Nasdaq Capital Market

Granite City Food & Brewery Ltd. (NASDAQ: GCFB) received notice from the Nasdaq Listing Qualification group that is application to list its common stock on The Nasdaq Capital Market has been approved. The Company’s securities will be transferred to The Nasdaq Capital Market at the opening of business on December 14, 2009.

The Company previously announced on October 2, 2009 that it had received a deficiency letter from the Nasdaq Listing Qualifications Department notifying it that the market value of its publicly held shares has been below the minimum $15.0 million requirement for continued inclusion on the Nasdaq Global Market under Listing Rules 5450(b)(2)(C) or 5450(b)(3)(C). The Company previously disclosed that Nasdaq Listing Rules require that market capitalization be calculated based on the public float, which excludes insiders. Following a debt conversion transaction with DHW Leasing, insiders of the Company owned approximately two-thirds of the Company’s outstanding shares. In lieu of seeking to remain on the Nasdaq Global Market, the Company elected to move its listing to the Nasdaq Capital Market, which has a lower threshold for the minimum market capitalization. The Company also previously announced that it has until January 29, 2010 to satisfy our previously a disclosed minimum bid price ($1.00) deficiency. The Company intends to prepare a plan to achieve compliance with the Nasdaq minimum bid price requirement. Such plan may include a reverse stock split.

Granite City Food & Brewery Ltd. is a Modern American upscale casual restaurant chain that operates 26 restaurants in 11 states. The menu features affordable yet high quality family favorite menu items prepared from made-from-scratch recipes and served in generous portions. The sophisticated yet unpretentious restaurants, proprietary food and beverage products, attractive price points and high service standards combine for a great dining experience. Granite City opened its first restaurant in St. Cloud, Minnesota in 1999.