Exhibit 99.3

FOR IMMEDIATE RELEASE--August 9, 1999

Contact: Kevin Brannon
         Frederick Brewing Co.
         (301) 694-7899 x 100

                          FREDERICK BREWING CO., SNYDER
                         INTERNATIONAL AGREEMENT LAPSES
                            But Negotiations Continue

FREDERICK, MD--Frederick Brewing Co. (OTCBB:BLUE) today announced that its
agreement giving Snyder International Brewing Group, LLC ("SIBG") the exclusive
right to negotiate a transaction with the Maryland brewer expired on Sunday,
August 8th. Under the deal, SIBG proposed to purchase newly-issued stock
amounting to a controlling interest in the Maryland beer maker.

According to Frederick's chief executive officer, Kevin Brannon, the companies
have not broken off negotiations and talks will continue. Brannon said, "We are
continuing to work toward completing the transaction without the exclusivity
agreement. We have made excellent progress in negotiations to restructure and
strengthen the Company's balance sheet and believe that process can be completed
within a few days." Brannon said that, while the Company is now free to explore
deals with other parties and had received some preliminary inquiries, he
continued to believe a deal with SIBG will be worked out. Frederick first
disclosed the talks with SIBG on June 30th and announced a two week extension of
the exclusivity agreement on July 26th.

On June 30th Frederick disclosed that it had given SIBG the exclusive right to
negotiate a strategic alliance that would call for SIBG to invest a substantial
amount of cash in the company in exchange for newly-issued shares constituting a
majority of the stock outstanding. SIBG would arrange to re-finance Frederick's
bank debt on more favorable terms and would purchase the brewery building from
its current owners. If the transaction is completed, Frederick's brewery might
contract brew 5,000 to 35,000 barrels per year of SIBG's brands, beginning as
soon as possible. On July 25th, SIBG agreed to pay an undisclosed fee to
Frederick to extend the exclusive talks through Sunday's deadline.
<PAGE>

C. David Snyder, SIBG's chairman, said "We are still enthusiastic about our
potential investment in Frederick and we are working hard to complete a deal in
the next few days."

Privately-held SIBG is based in Cleveland, Ohio and, since entering the beer
business in August of 1998, has acquired two Ohio breweries and several brands
which together are projected to ship as much as 70,000 barrels in 1999. Its
brands include Crooked River, Little Kings, Hudy Delight and Christian Moerlein.
Its strategy is to consolidate companies and brands in all segments of the
domestic beer industry.


Except for historical information, this press release contains forward-looking
statements that involve risks and uncertainties including, but not limited to,
the Company's financial condition and liquidity, the requirement that third
parties, including the Company's creditors and preferred stockholders, must
approve, consent to or otherwise cooperate as a condition to closing the
contemplated transactions, the lack of audited financial statements for SIBG,
SIBG's brief operating history, the potential difficulties inherent in shifting
and coordinating production among various facilities, probable management
changes, the effects of competition; the failure of the Company and SIBG to
enter into definitive agreements; the inability of the Company or SIBG to
satisfy any closing conditions contained in such agreements or otherwise fail to
complete the transactions contemplated by such agreements; and other risks
detailed in the Company's SEC filings. Actual results may differ materially from
the forward-looking information set out above.