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, ---------------------- ----------------------- 1997 1996 1997 1996 ------- ------- ------- ------- Weighted average common shares outstanding for the period ...... 10,769 10,665 10,756 10,647 Common equivalent shares assuming conversion of stock options and warrants under the treasury stock method .......................... 58 390 -0- 371 ------- ------- ------- ------- Shares used in per share calculation 10,827 11,055 10,756 11,018 ======= ======= ======= ======= Net income (loss) ................... $ 99 $ 881 $(2,721) $ 1,347 ======= ======= ======= ======= Net income (loss) per share ......... $ 0.01 $ 0.08 $ (.25) $ 0.12 ======= ======= ======= =======