Brown Jug agrees to be sold to Liquor Stores Income Fund

ANCHORAGE, AK, July 22 /PRNewswire/ - Brown Jug Inc. ("Brown Jug"), Alaska's
premier retailer of fine wine, spirits and beer, has agreed to sell its liquor
stores to a wholly-owned subsidiary of Liquor Stores Income Fund ("Liquor
Stores Group") of Edmonton, Alberta. All 19 of Brown Jug's stores in
Anchorage, Eagle River, and Wasilla, including one under construction, will be
acquired.
Brown Jug and its predecessors have been in the liquor retailing business in
greater Anchorage for over 50 years. Brown Jug currently employs approximately
170 people in Alaska. The sale will not result in a change to the number of
job positions.
To assist with the transition, Brown Jug co-owners Lowell Shinn, President,
and Ed O'Neill, Vice Chairman, have agreed to remain in the business in a
consulting capacity following completion of the sale. In addition, Mr. O'Neill
has agreed to serve as an officer of the group's new company, in order to
maintain Brown Jug's community involvement.
"Brown Jug looks forward to continuing to serve Alaskans under the stewardship
of Canada's leading private liquor retailer," said Mr. O'Neill. "We are very
pleased that Liquor Stores Group intends to continue with Brown Jug's approach
to operational excellence, employee satisfaction and social responsibility."
Irv Kipnes, Chief Executive Officer of Liquor Stores Group, added, "We are
very pleased with the opportunity to make a significant first acquisition of
one of the U.S.'s best operated private liquor companies. We intend to build
on Brown Jug's admirable reputation in Alaska for community activism and
responsible retailing. This includes a continued commitment to help eliminate
underage drinking, fight drunk driving and assist in the many social and
community programs which Brown Jug supports. We look forward to becoming part
of the Alaskan community."
"We will continue the policy of special alcohol server training and paying
bonuses to employees for seizing fraudulent and underage ID cards from
minors," said Mr. Kipnes. "And we will continue to sponsor cleaning efforts at
camps for the homeless, as well as to donate time and money to Alaska
organizations and fundraisers."
"Like Brown Jug, Liquor Stores Group is dedicated to providing our employees
with a great work environment and equal opportunity for learning and
professional growth. Liquor Stores Group strongly believes that a commitment
to diversity ensures that all employees and customers are treated with respect
and dignity."
Subject to regulatory approvals and other customary conditions, the
transaction is expected to close before December, 2008. Financial terms of the
transaction were not disclosed.

About Brown Jug
---------------
With 19 locations throughout Anchorage, Eagle River, and Wasilla, Brown Jug is
Alaska's premier retailer of fine wine, spirits and beer, and is the recipient
of numerous community and industry awards. Brown Jug and its employees are a
past winner of the Anchorage School District Community Leadership Award and a
recipient of the 2007 National Market Watch Community Service Award. Further,
Brown Jug was awarded the "Licensee of the Year" award in 2007 by the
Association of American Beverage Licensees for its unique approach to
preventing underage drinking. Since 1998, Brown Jug employees have seized
almost 2000 ID's from minors attempting to purchase, more than all of the
other package stores in Alaska combined.
All Brown Jug employees are required to complete a "Training for Intervention
Procedures by Servers of Alcohol" class, (TIPS), within 30 days of starting to
work in a store. Among other things, training covers refusing the sale of
alcohol to known public inebriates, or anyone else whom we believe may harm
themselves or others by using alcohol. Brown Jug store employees are
re-certified through TIPS every 12 to 18 months. Brown Jug currently has
4 certified TIPS trainers on staff, the senior trainer has been certified for
over 20 years.
The Security department at Brown Jug has made over 120 arrests of adults
purchasing alcohol for minors, and minors soliciting adults to buy alcohol for
them. These arrests are the result of specific surveillance details designed
to intercept alcohol purchased for minors. The Anchorage Chief of Police
presented the Security department with an award for these efforts in 2002.
Brown Jug employees routinely advise the Anchorage Police Department of
persons who appear to be driving under the influence. Brown Jug was awarded
the "Platinum Key of Life" award by Doctors for Designated Driving to
recognize company efforts to prevent drunk driving.
Brown Jug supports numerous community programs, including the Anchorage
Neighborhood Housing Association, Anchorage Responsible Beverage Retailers
Association, Brother Francis Shelter, Catholic Social Services, Covenant
House, Community Patrols, Eagle River Nature Center, Homeward Bound,
Intervention Helpline, MADD, Mother Lawrence Food for the Needy, Reclaiming
Futures, Safe City Program, and the Salvation Army Adult Rehabilitation
Program to list but a few.
For additional information about Brown Jug please visit the company's website
at http://www.brownjugalaska.net/.

About Liquor Stores Group
-------------------------
Liquor Stores Income Fund is a publicly traded Canadian income trust with
stores in large and small communities in Alberta, British Columbia and
Nova Scotia. It is heavily involved in both community and industry activities
and sees significant synergies with Brown Jug. For additional information
about Liquor Stores Group, please visit their website at
www.liquorstoresincomefund.ca.

SOURCE Brown Jug Inc.

For Brown Jug: Ed O'Neill, Vice Chairman, Tel: (907) 563-3815 ext. 225; For
Liquor Stores Group: Irving Kipnes, Chief Executive Officer, Tel: (780)
944-9994 ext. 8, Email: ikipnes@lsgp.ca; Rick Crook, President, Tel: (780)
944-9994 ext. 7, Email: rcrook@lsgp.ca; Or: Longview Communications Inc., Alan
Bayless, Tel: (604) 694-6035, Email: abayless@longviewcomms.ca