Molson Coors Reports Higher Sales Volume, Net Sales and Earnings Per Share in First Quarter 2008

Market Wire, May, 2008

Molson Coors Brewing Company (TSX: TAP.A)(TSX: TAP.B)(NYSE: TAP) today reported higher sales volume, net sales and earnings per share for the fiscal first quarter ending March 30, 2008.

First Quarter Highlights

Key results for the Company's fiscal first quarter ended March 30, 2008, compared to the fiscal first quarter ended April 1, 2007, include the following:

- Net sales increased 10.4 percent to $1.36 billion.

- Net sales per barrel increased 7.4 percent.

- Sales volume increased 2.8 percent to 9.1 million barrels, or 10.7 million hectoliters (HLs).

- Total Company sales-to-retail (STRs) rose 4.6 percent. U.S. STRs rose 6.6 percent, while Canada STRs were up 2.5 percent. U.K. sales volume increased 1.0 percent.

- Cost of goods sold per barrel increased 5.5 percent.

- Marketing, general and administrative expenses rose 10.0 percent to $436.6 million.

- After-tax income from continuing operations, a U.S. GAAP earnings measure, was $46.1 million, up 140.1 percent from $19.2 million in the first quarter of 2007. This increase was attributable to strong business performance in the U.S. and Canada and a lower effective tax rate, partially offset by accelerated incentive compensation expense and one-time debt extinguishment costs.

- Underlying after-tax earnings were $59.1 million, or $0.32 per diluted share, a 135.5 percent increase compared to $25.1 million, or $0.14 per diluted share, in the first quarter 2007. The company calculates non-GAAP underlying earnings by excluding special and other one-time items from the nearest U.S. GAAP earnings measure. To calculate underlying earnings in the first quarter of 2008, the company excluded net special charges of $7.3 million pretax and one-time debt extinguishment costs of $12.4 million pretax. (See "Special and Other One-Time Items" and "Discontinued Operations" below.)

- Based on the strong performance by the Company during the past four quarters, Molson Coors successfully met the financial target for the Company's primary long-term incentive compensation plan in the first quarter. This achievement had the effect of accelerating $25 million, or $0.10 per share, of non-cash expense related to the incentive plan into the first quarter.

All $ amounts are in U.S. Dollars. See tables below for reconciliations to nearest U.S. GAAP measures.

Leo Kiely, Molson Coors president and chief executive officer, said, "We are very pleased with our first quarter results, which reflect continued strong momentum. Across the board, our teams have remained focused on creating profitable growth by building brands and reducing costs. Based on the strength of our brands, sales execution and cost-reduction initiatives, our U.S. and Canadian businesses once again delivered positive pricing and strong sales-to-retail and bottom-line growth. In the U.K., where challenging conditions still dominate the brewing industry, our team grew overall market share and net pricing.

Mr. Kiely underlined: "The disciplined focus on building our brands and reducing costs has enabled us to achieve our long-term profit target much earlier than expected. Reaching this milestone in financial performance is a testament to the hard work and dedication of leaders throughout the company, who have consistently delivered results above expectations to the benefit of our shareholders."

During the quarter, Molson Coors achieved approximately $29 million in cost reductions as part of its three-year, $250 million Resources for Growth program. Foreign exchange rate movements increased total-company pretax income by approximately $4 million in the quarter.

The Company's effective tax rate during the first quarter 2008 for income from continuing operations was negative 12 percent including special items and positive 2 percent on an underlying basis, compared to positive 19 percent and 21 percent, respectively, during the first quarter a year ago. The Company's first quarter 2008 tax rate was reduced by the release of unrecognized tax benefits during the quarter due to certain tax years closing or being effectively settled. The Company now estimates that its full-year 2008 effective tax rate will be in the range of 14 percent to 18 percent on an underlying basis.

Business Segments

On March 5, 2008, Molson Coors Brewing Company announced the appointment of Dave Perkins as President, Global Brand and Market Development, with responsibility for growth and expansion of the Company's business and brand portfolios in global development markets. As a result of this decision, the Company's current business in Asia, Continental Europe, Mexico and the Caribbean (not including Puerto Rico) are now included in Global Markets and Corporate. In order to reflect this change, the former Europe segment has been re-named and now includes only the United Kingdom and Republic of Ireland. The U.S. segment now represents only the United States and Puerto Rico.

Following are the Company's 2008 first quarter results by business segment:

Canada Business