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                                                                    EXHIBIT 11.1

                             PYRAMID BREWERIES INC.

                         EARNINGS PER SHARE COMPUTATION


<TABLE>
<CAPTION>
                                          THREE MONTHS ENDED                   NINE MONTHS ENDED
                                             SEPTEMBER 30                        SEPTEMBER 30,
                                     ----------------------------------------------------------------
                                                         1995                                 1995
                                        1996          (PRO FORMA)            1996          (PRO FORMA)
                                     ----------       ----------          ----------       ----------
<S>                                 <C>              <C>                 <C>              <C>
Income Before Income Taxes .......   $1,293,290       $1,621,408          $3,778,216       $4,220,297
Plus Interest Expense ............         --             68,429                --            189,387
                                     ----------       ----------          ----------       ----------
Income Before Income Taxes .......    1,293,290        1,689,837(1)        3,778,216        4,409,684(1)
Income Tax Provision .............      362,499          589,753(1)        1,102,881        1,538,980(1)
                                     ----------       ----------          ----------       ----------
Net Income for EPS Calculation ...   $  930,791       $1,100,084          $2,675,335       $2,870,704
                                     ==========       ==========          ==========       ==========
Weighted average common shares
outstanding ......................    8,200,000        6,200,000           8,200,000        6,200,000
Pro Forma shares issued to
 retire debt and repay
 stockholder notes ...............         --            578,125(2)             --            578,125(2)
                                     ----------       ----------          ----------       ----------
Shares Outstanding ...............    8,200,000        6,778,125           8,200,000        6,778,125
                                     ==========       ==========          ==========       ==========

Earnings per Share ...............   $     0.11       $     0.16          $     0.32       $     0.42
                                     ==========       ==========          ==========       ==========
</TABLE>


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(1)  Pro forma net income represents the Company's reported income before income
     taxes, plus interest expense, less a pro forma income tax provision that
     would have been applicable had the Company been taxed as a C corporation.
     The Company had elected to be treated as an S corporation from January 1,
     1993 until prior to the closing date of the Offering and, as a result, was
     not subject to federal and certain state income taxes.

(2)  Pro forma shares issued to retire debt and repay stockholder notes
     represents the number of shares of Common Stock which would be required to
     be sold to repay the $6.0 million notes issued by the Company to its
     stockholders in payment of a dividend representing the distribution of
     retained S corporation earnings and retire outstanding debt.


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