1 Exhibit 11.1 PETE'S BREWING COMPANY AND SUBSIDIARY COMPUTATION OF NET INCOME PER SHARE IN ACCORDANCE WITH INTERPRETIVE RELEASE NO. 34-9083 (in thousands, except per-share amounts) For the three For the six months ended months ended June 30, June 30, ------------------ ------------------ 1996 1995 1996 1995 ------------------ ------------------ Weighted average common shares outstanding for the period.................... 10,665 4,200 10,647 4,158 Preferred stock................................... -- 3,304 -- 3,304 Common equivalent shares assuming conversion of stock options and warrants under the treasury stock method........................................ 390 550 371 592 ------- ------ ------- ------ Shares used in per share calculation.............. 11,055 8,054 11,018 8,054 ======= ====== ======= ====== Net income........................................ $ 881 $ 25 $ 1,347 $ 237 ======= ====== ======= ====== Net income per share.............................. $ 0.08 $ 0.00 $ 0.12 $ 0.03 ======= ====== ======= ======