To any regular or occasional patron of the Southampton Publick House, the
company's self-brewed beer is a familiar libation. For the general public of
Long Island and beyond, however, the local brewpub's award-winning ales, lagers
and porters remain a pleasure unknown to all but the most discerning beer connoisseurs.

Publick House owner Don Sullivan and brewer Phil Markowski are working to
change that.

Last Friday, Mr. Sullivan announced that his holding company, Southampton
Bottling, is entering into a distribution partnership with Texas-based Pabst
Brewing Company. With 37 brands and 1000 marketing employees, Pabst is positioned
to improve and broaden its new partner's distribution, with a focus on the
Northeast market, beginning this spring.

"This is unusual," Mr. Sullivan said. "It's rare you see a microbrewer joining
with a macrobrewer."

Mr. Sullivan explained that the had not expected to be approached by such
an industry leader. "It was flattering and surprising when they came to us
in July," he said. "We thought they were approaching a lot of microbreweries,
but they were specifically interested in us."

Officials with Pabst Company could not be reached for comment.

Southampton Publick House currently distributes 10 different beers that are
divided into three categories: sessions, XXII series and Farmhouse 750 series.
The distribution deal with Pabst will focus on the sessions and XXII series
beers.

The three sessions brews, described by Mr. Sullivan as a "smooth, easy beer"
and sold in six-packs, are Secret Ale, Double White Ale and India Pale Ale.
The XXII series beers, which include Imperial Porter, Triple Abbey Style Ale
and Pumpkin Ale are "single batch" brews and generally seasonal. "Each is what
we call 'true to style,'" Mr. Sullivan said of the seasonal offerings. "Each
is what it's supposed to be."

The four beers of the Farmhouse 750 series are sold in dark, corked 750-mililiter
bottles, comparable in quantity to a fifth of whiskey. These are produced and
distributed in limited amounts and are highly regarded by beer authorities.
"This series is our best known in the beer community, but our least known in
the general market," Mr. Sullivan said. The Farmhouse beers will be largely
unaffected by the Pabst partnership as Mr. Sullivan plans to continue distributing
them independently.

The Southampton brewery itself will remain independent and solely responsible
for production. Mr. Sullivan insists that his beers will not get lost in a
large portfolio, but will benefit from Pabst's enormous marketing resources
and 165 distributorships. "They told us, 'We're going to let you guys do what
you do best, and we'll do what we do best.'" Mr. Sullivan recalled.

These benefits will likely include a much higher profile in the northeastern
United States and larger market exposure. In fact, Mr. Sullivan said his current
distributors are delighted with a new partnership.

Although Mr. Sullivan described Southampton Bottling's previous distribution
scale as small even by microbrewery standards--the company distributed 22,000
cased in 2006 and expect to move between 45,000 and 50,000 cases this year--the
company was doing perfectly well before Pabst made its first overtures.

Mr. Sullivan is quick to point out that Pabst's association presents an opportunity
and is not a free gift. "Our problem has always been volume and production,"
he cautioned. "To increase our sales, we need to increase our production and
to increase our production, we need to increase our sales. It's kind of a catch-22
situation."

Although he is confident that Pabst will be very helpful in resolving this
dilemma, Mr. Sullivan noted that expansion will still need to be responsible
and controlled. "We need to grow in measured steps, baby steps," he explained.

No unreasonable strain will be placed on Southampton Bottling's three breweries,
which are located upstate in Saratoga, in Pennsylvania, and of course, on the
premises of Southampton Publick House.

When Pabst begins distributing the Southampton product in April, expansion
should be gradual, but steady, Mr. Sullivan predicted. "We'll strategically
introduce it to more beer markets," he said."The first year and a half will
bring bigger sales and bigger marketing resources. It's reasonable to think
we'll distribute over 100,000 cases in 2008."

The Pabst partnership is expected to included a 24-month advertising campaign
designed to increase the Southampton brands' name recognition in several important
markets.

"It;s going to to take time and effort," Mr. Sullivan speculated. "But after
two to three years of this, I think we'll be a well-known regional brand."

Mr. Sullivan concluded by adding that the Pabst deal shows just how much there
is left for him and Mr. Markowski to accomplish. "In some ways I think we've
just gotten going," he said, "but I think this shows the beers here are equal
to what you'll find anywhere."