Exhibit 99.2


[Blueridge LOGO]


                   [Stationery of Frederick Brewing Company]





                             THIRD QUARTER RESULTS

                                    --------

     The Company will report a third quarter 1996 loss of $475,018 ($0.24 per
share) compared to net income of $26,186 ($0.02 per share) for the corresponding
quarter of 1995. The year-to-date 1996 loss increased to $1,117,314 ($0.68 per
share) compared to a loss of $88,303 ($0.07) for the first nine months of 1995.
The per share calculations were affected by an increase in the number of shares
outstanding as the result of the Company's initial public offering in March of
1996. The loss reflects planned increases in overhead expenses associated with
expanding sales and management staffing, production of new marketing materials,
the increased professional fees, insurance and other costs associated with being
a public company and higher production costs associated with a contract brewing
arrangement with a non-owned brewery (which was terminated as of September 30);
as well as an expense associated with adjusting certain accounts payable
cut-offs and a below-cost sale of dated and returned beer to a liquidator in
Nevada.

     Gross revenues for the quarter were $506,450, an increase of 3.8% over the
$492,445 recorded in the third quarter of 1995 on shipments of 2998 barrels, a
10.5% increase over 1995 shipments of 2713 barrels. Gross revenues for the first
nine months of 1996 were $1,375,302, an increase of 2.1% over the $1,346,644 in
the same period in 1995, on shipments of 7,975 barrels, an increase of 4.9% over
1995 sales of 7,603 barrels. Shipments continue to be constrained by the lack of
production capacity--finished goods inventories at September 30 were 461
barrels, about 14 days' shipments, down from 1085 barrels at June 30, 1996,
indicating that the Company was selling all the beer it was capable of producing
in its current facilities. Depletions (sales by the Company's wholesale
distributors) in the core markets of Maryland and Washington, DC increased by
nearly 15% over the same period in 1995, reflecting the Company's success in
increasing market share in its core market, while sales to several markets,
including Chicago and New Jersey, were suspended to allow the Company to meet
increased demand in its core markets and in preparation for alligning its
distribution with stronger wholesalers when the Company's new brewery comes on
line.


                              NEW BREWERY EQUIPMENT
                                BEGINS TO ARRIVE,
                              CONSTRUCTION PROCEEDS
                                    --------

     The first of about 25 truckloads of new brewery equipment began to arrive
at the Company's new brewery in September. The remaining new equipment is
scheduled to arrive by December 10th. Installation of the equipment should be
complete by December 31st. Barring unforeseen problems, management anticipates
shipping up to 1,000 barrels of beer from the new brewery by the end of January.
The Company's offices will move to the new facility during February. Extremely
wet spring and summer weather delayed building construction by six to eight
weeks. The building is now under roof, however, and further weather-related
delays should not be significant. The new brewery expands the Company's
production capacity by 500%, provides efficient office and meeting space and
features an attractive tap room where wholesalers, retailers and consumers can
meet and sample Blue Ridge beers.

     In a related development, the Board of Directors has decided to close the
existing brewery in downtown Frederick as soon as practicable after the new
brewery is operational, in order to permit the Company's employees to focus on
the start-up of the new brewery and because production costs at the new brewery
are expected to be much lower than at the current brewery. The existing
equipment will be sold for cash, but the Company will take a significant fourth
quarter charge, reflecting the write-off of undepreciated leasehold improvements
and equipment.

<PAGE>

                             FREDERICK BREWING CO.
                                 Balance Sheet
                                                
                                                
                                                          September 30, 1996
                                                              (Unaudited)     
ASSETS                                          
Current assets:                                         
        Cash and cash equivalents                             $1,061,795 
        Trade receivables                                        410,298 
        Inventories, net                                         198,361 
        Prepaids and other current assets                         71,441 
                                                               ---------
        Total current assets                                   1,741,895 
                                                
Property and equipment, net                                    1,042,779 
Deposits                                                       1,682,966 
Intangibles, net                                                 145,858 
Other assets                                                          --
        Total assets                                          $4,613,498 
                                                              ----------
LIABILITIES AND STOCKHOLDERS' EQUITY                                            
                                                
Current liabilities:                                            
        Current maturities of long-term debt                  $   52,976 
        Current maturities of capital leases                      13,385 
        Accounts payable and accrued liabilities                 102,071 
                                                              ----------
        Total current liabilities                                168,432 
                                                
Long-term debt                                                 1,054,888 
Obligations under capital leases                                  68,932
                                                              ----------
        Total liabilities                                      1,292,252 
                                                
Stockholders' equity:                                           
        Common stock                                                  72 
        Additional paid-in capital                             4,901,424 
        Accumulated deficit                                   (1,580,250)
                                                              ----------
        Total stockholders' equity                             3,321,246
                                                              ----------      
        Total liabilities and stockholders' equity            $4,613,498 
                                                              ----------
<PAGE>


                             FREDERICK BREWING CO.
                            Statement of Operations


<TABLE>
<CAPTION>


                                         Three Months Ended Sept. 30,         Nine Months Ended Sept. 30,             
                                                1996      1995                       1996        1995    
                                                ----      ----                       ----        ----    

<S>                                           <C>          <C>                <C>             <C>    
                                                                                                   
Gross sales                                   515,376      502,225             1,390,119       1,364,923
Less returns and allowances                    48,690       (4,583)               84,576          15,365
Less excise taxes                              32,156       19,246                73,643          60,194
                                               ------       ------                ------          ------
  Net sales                                   434,530      487,562             1,231,900       1,289,364

Cost of sales                                 475,644      319,973             1,353,843         906,963
                                              -------      -------             ---------         -------
  Gross profit                                (41,114)     167,589              (121,943)        382,401

Selling, general and administrative expenses  439,913      126,958               996,472         415,297
                                              -------      -------               -------         -------
  (Loss) income from operations              (481,027)      40,631            (1,118,415)        (32,896)

Interest (income) expense, net                 (6,009)      14,445                (1,101)         43,016
Other expenses                                     --           --                    --          12,391
  (Loss) income before income taxes          (475,018)      26,186            (1,117,314)        (88,303)

Provision for income taxes                         --           --                    --              --
  Net (loss) income                          (475,018)      26,186            (1,117,314)        (88,303)
                                             ---------      ------            -----------        --------
  
Net loss per common share                       (0.24)        0.02                 (.064)          (0.07)
                                                ------        ----                 ------          ------

Weighted average common shares              
   and common share equivalents outstanding  1,954,876   1,204,719             1,754,013       1,204,719
                                             ---------   ---------             ---------       ---------
</TABLE>