|Annual Shareholders Meeting




May 27, 2008
|--------------------------------------------



---



##### 



|Forward Looking Statements

The following discussion will include forward-looking
statements.  Such statements are subject to factors,
risks and uncertainties that may cause actual results to
differ materially from those projected.



Important factors that might cause such a material
difference include, but are not limited to, the inability for
any reason of the Company and Magic Hat Brewing
Company to consummate the proposed merger
transaction, or a material adverse change in the
Company's business or financial affairs.



You should not place undue reliance on these forward-
looking statements.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---



##### 



|AGENDA

Objectives:

Provide perspective for proposed Magic Hat merger

Provide latest transaction timing and next steps



Agenda:

Historical Perspective  (G. Hancock)



Current and Future Environment (S. Barnum)



Transaction/Merger Update (S. Barnum)



Q&A (Both)
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---



##### 



|Historical

Retrospective
|-------------------------



---



##### 



|Historical Perspective - Revenue

We've been able to grow the top line...

Portland Brewing acquisition

TK Soda Sale

IPO
|--------------------------------------------------------------------------------------------------------------------------



---



##### 



|Historical Perspective - Profits

But we haven't been able to grow the bottom line...
|-------------------------------------------------------------------------------------



---



##### 



|Historical Perspective - Stock Price

1995 to Date

Price/share

IPO - 1995

Dividend Period

 2000 to 2004
|-----------------------------------------------------------------------------------------------------------



---



##### 



|Summary -  Key Learning

What We Did

Went Public to build national
brand/fund new breweries and
alehouses (1995)





Bought TK Soda brand (1997)

To diversify and grow







Tested expansion via
Alehouses (2001 -'04)


What We Learned

Building national brand very
difficult and expensive

Being public not much benefit
and increasingly problematic



Distribution and category
dynamics constrain growth

Only so far beer distributors
could take brand

Category growth limited



Required too much capital
and was big management
distraction
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---



##### 



|Summary -  Key Learning

What We Did

Distributed dividends ('00 - '04)







Explored strategic options ('05)









Tried geographic expansion

(mid 90's and '07)


What We Learned

Helped support stock price but
couldn't afford cash flow given
ever escalating operating costs



Minimal interest and low
valuations







Must have local sales
presence/oversight to work

But costly to do on our own
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---



##### 



|Current View
|------------



---



##### 



|2008

The Good

Business meeting expectations

Ahead of '07

Core market (WA) stabilized



Restructured organization

10% head count reduction





Took aggressive pricing

4-5%



Secured raw materials for beer

Availability/locked in prices



Installed new bottling line in BK

Significant savings

Our Challenges

Macro economy

Softening craft category



Cost Pressures

Raw materials / Energy

Freight

Alehouse Food Costs

Compliance requirements



Alehouse Settlement ($1.1MM)



Competitive Pressures

Blue Moon
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---



##### 



|Total West Craft Category

Volume Trends

Craft category in West slowing

YTD  Total US      +7%
        4 Weeks    13 Weeks    16 Weeks/YTD    52 Weeks
    GROWTH    -0.0139    0.0205    0.0293    0.044


Units/Case EQ

- Total West IRI:  ending 4/20/08
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---



##### 



|Brand Pyramid Performance

IRI Dollar Share of Craft ending 4/20/08

July '07 8.3%

April '08 8.1%
|--------------------------------------------------------------------------------------------------



---



##### 



|Growth of Blue Moon

IRI Total West - through 12/30/07
|------------------------------------------------------



---



##### 



|Pyramid vs. Blue Moon
        4 Weeks    13 Weeks    16 Weeks YTD    52 Weeks
    Pyramid Family    -1.92    -0.47    0    3.29
    Pyramid Hefe    -1.4    -3.5    -3    2.1
    Blue Moon Family    90.7    89.2    93.1    98.1
    Blue Moon White    57.5    58.7    63.9    73


IRI Total West  - Through 4/20/08

Blue Moon is "on fire" and dampening our growth
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---



##### 



|A Look Ahead
|------------



---



##### 



|The Future - Bigger Picture

Turbulent Beer Market/Macro Dynamics

"Better Beer" growing at expense of "Mainstream Beer"

"Premiumization" and trade-up affecting all categories

Craft Category getting even more crowded - a 'la mid/late '90's



Rapid consolidation and change

Brewers - Miller/Coors - A-B/InvBev - Widmer/Redhook

Wholesalers -- big and getting bigger

Miller/Coors JV to fuel consolidation

 Retailers - centralized buying/national programming pressures



Challenging economic environment - worst yet to come

Affects every tier (brewer, wholesaler, retailer, consumer)
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---



##### 



|The Future - Bigger Picture

Intensifying Competitive Dynamics

The Big Guys - making major moves at upper end

Coors - Blue Moon (#1 fastest growing brand)

Miller - Leinenkugels (Sunset Wheat/Honey Wheat)

A-B - Craft player investments and NPD "whirlwind"



The Imports - more aggressive than ever

Spending/new products - diverting distributor/retailer attention

Not taking pricing in '08

A-B firmly in the import business



Key Craft Players - expanding, spending, consolidating

Geographies, breweries and brands

Sam Adams, Magic Hat, Boulevard, Deschutes, Widmer/Redhook
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---



##### 



|The Future - Bigger Picture

Evolving Craft Category Dynamics

Craft category markedly slowing/er in West

Growth rate less than 50% the national rate

Pacific Northwest softer in particular - low single digit

Market penetration/maturation limiting growth

Cost pressures pushing craft retail prices to "uncharted waters"

The $10/six-pack



The big are getting bigger and spending more

Large craft brewers now represent 65% of total category sales

Top 10 = 50% of total category sales

Sam Adams spending $30MM/year in advertising
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---



##### 



|The Future - Bigger Picture

Challenging Internal Conditions

Operating cost pressures NOT likely to abate soon

Hops/malts - will take time to increase supply

Fuel/energy - what will stem the upward tend?

Pressure on labor costs to keep up with inflation

Costs and burdens of being public and a micro cap



Ever increasing pressures to be aggressive marketers

As markets mature it becomes a "share taking" game

Hard to afford/sustain both Sales and Marketing investment

The bigger you get the larger the demands for support
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---



##### 



|Bigger Picture

Summary

Challenges to attain/sustain profits will continue

Cost pressures won't lesson any time soon

Being public won't get any easier/cheaper





Industry dynamics putting heavy pressure on larger
craft players to:

Get bigger and national to gain mindshare/focus

Be low cost producers to leverage scale and increase margins to
increase ability to spend/support brands
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---



##### 



|Proposed

Magic Hat

Transaction
|--------------------------------



---



##### 



|What Is The Proposed Deal

Pyramid acquired at $2.75/share

All cash deal

Company to be taken private

Magic Hat's financial partner to facilitate



Pyramid and Magic Hat to merge

Will form a new single company

Magic Hat's CEO will lead the new company

Brands and facilities to largely remain
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---



##### 



|What's The Timing/Next Steps

Action               Estimated Timing

Sign definitive agreements         June



Shareholders tender shares      June

   Official notification/instructions forthcoming

   Redemption and payment in June



Unwind public company/merge      June/July



Official close/everything completed   August
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---



##### 



|Who Is Magic Hat

Who Is Magic Hat

 13th largest Craft Brewer in USA (Brewers Association)

-  # 3 regional brewer in the East

 Founded in 1994



 Based in Burlington, VT

- Distributed in 20+ states



 2nd fastest growing Craft Brewer in the Top 30 in USA

      - Tripled business since 2000 / Doubled since 2003



 Backed by financial partner - Basso Capital Management




www.magichat.net
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---



##### 



|Q&A
|---