EXHIBIT 4.1

Contacts:    P.A. Murali, CFO  (707) 463-6610              For Immediate Release
             Yashpal Singh, President  (707) 463-2087

                                  News Release

     MENDOCINO BREWING COMPANY ANNOUNCES INTENT TO ACQUIRE UBSN LTD. UK, THE
         EUROPEAN DISTRIBUTOR OF KINGFISHER PREMIUM LAGER, AND THE U.S.
                 DISTRIBUTION RIGHTS TO KINGFISHER PREMIUM LAGER

Ukiah,  California,  March 29, 2000. Mendocino Brewing Company,  Inc. (PSE: MBR)
announced today that it intends to enter into two  transactions  with affiliates
of its largest shareholder, United Breweries of America Inc.

In the first transaction, Mendocino Brewing Company intends to acquire UBSN Ltd.
UK,  which  is  the  European  distributor  of the UB  Group's  flagship  brand,
Kingfisher Premium Lager. In the second  transaction,  Mendocino Brewing Company
announced  that it intends  to acquire  the  distribution  rights to  Kingfisher
Premium Lager Beer in the United States from United Breweries International,  UK
Ltd. ("UBI, UK Ltd.")

The two  transactions  are  expected  to be  finalized  by the end of May  2000,
subject to the necessary due diligence and regulatory approvals. Once completed,
the  acquisitions  will provide  Mendocino  Brewing  Company with the  exclusive
rights to distribute Kingfisher Premium Lager Beer in the United States.

In 1999, UBSN's U.S. dollar equivalent  revenues were $12.4 million and earnings
before  taxes  were  $314,500 (computed at $1.70 to  (UK lb.) 1.00).  UBSN  Ltd.
distributed approximately 47,500 barrels of beer in 1999; 80%, of which was sold
in the  United  Kingdom;  the  balance  was sold in Europe,  the United  States,
Canada, and Japan.

Dr. Vijay Mallya, Chairman of Mendocino Brewing Company states, "The acquisition
of UBSN Ltd. UK, and securing the US distribution  rights for Kingfisher Premium
Lager by Mendocino  Brewing Company,  will present the company several strategic
benefits.  The  addition  of  Kingfisher,   a  two-time  World  Champion  lager,
strengthens our current brand portfolio and allows Mendocino  Brewing Company to
maximize our base of consumers.  Also,  UBSN with its strong presence in Europe,
presents us with the  possibility  of exporting  our Red Tail Ale and Eye of the
Hawk Select Ale brands to new markets.  We intend to take full  advantage of the
new opportunities before us."

Mendocino  Brewing  Company  has  historically  brewed  four  ales  and a  stout
year-round,  one seasonal ale, and one seasonal  porter.  The brands include Red
Tail Ale,  Blue Heron Pale Ale,  Eye of the Hawk Select  Ale,  Black Hawk Stout,
Peregrine Golden Ale, and two seasonals for the domestic craft beer market.  The
Corporation's  common  stock is publicly  traded on the Pacific  Stock  Exchange
under the symbol "MBR."