Granite City Food & Brewery Ltd. Receives Notice of Non-Compliance from NASDAQ

Suspension of Enforcement Allows Company Until July 20, 2009 to
Regain Compliance
MINNEAPOLIS--(Business Wire)--
Granite City Food & Brewery Ltd. (NASDAQ:GCFB), a Modern American
upscale casual restaurant chain, today announced that it has received
a notice from NASDAQ regarding its non-compliance with the $1.00 per
share minimum requirement for continued listing of its common stock
under Marketplace Rule 4450(a)(5).

NASDAQ further advised that it has determined to suspend
enforcement of its bid price and market value of publicly held shares
requirements through January 16, 2009. Following reinstatement of
these rules, Granite City will be provided until July 20, 2009 to
regain compliance.

If Granite City has not regained compliance by the expiration of
the temporary rule suspension, management anticipates that it will
prepare a plan to achieve compliance with NASDAQ listing requirements.
Such plan may include a request to transfer the listing of the
company's common stock to the NASDAQ Capital Market, which would, if
the company's application is approved, provide the company with a
second period of 180 calendar days to regain compliance.

If NASDAQ determines that Granite City's plan does not adequately
address the noted non-compliance, or if Granite City fails to maintain
compliance with any other listing requirement, Granite City will
receive notice that its securities will be delisted from NASDAQ. At
that time, Granite City would have the ability to appeal the decision
to a NASDAQ Listing Qualifications Panel.

If Granite City's securities do not continue to be listed on
NASDAQ, such securities would become subject to certain rules of the
SEC relating to "penny stocks." Such rules require broker-dealers to
make a suitability determination for purchasers and to receive a
purchaser's prior written consent for a purchase transaction, thus
restricting the ability to purchase or sell the securities in the open
market. In addition, trading, if any, would be conducted in the
over-the-counter market in the so-called "pink sheets" or on the OTC
Bulletin Board, which was established for securities that do not meet
NASDAQ listing requirements. Consequently, selling Granite City's
securities would be more difficult because smaller quantities of
securities could be bought and sold, transactions could be delayed,
and security analyst and news media coverage of Granite City may be
reduced. These factors could result in lower prices and larger spreads
in the bid and ask prices for Granite City securities. There can be no
assurance that Granite City securities will continue to be listed on
NASDAQ.

Granite City Food & Brewery Ltd. is a Modern American upscale
casual restaurant chain that operates 25 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 1999. Additional information about Granite
City Food & Brewery Ltd. can be found at the company's website
(www.gcfb.net).

Granite City Food & Brewery Ltd.
James G. Gilbertson, 952-215-0676
Chief Financial Officer

Copyright Business Wire 2008