WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE. <ARTICLE> 5 <LEGEND> The unaudited financial statements of Mendocino Brewing Company, Inc. as of September 30, 1997 </LEGEND> [TYPE] FDS <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JAN-01-1997 <PERIOD-END> SEP-30-1997 <CASH> 152,400 <SECURITIES> 0 <RECEIVABLES> 505,800 <ALLOWANCES> 0 <INVENTORY> 429,300 <CURRENT-ASSETS> 1,294,200 <PP&E> 11,888,900 <DEPRECIATION> 760,300 <TOTAL-ASSETS> 13,059,500 <CURRENT-LIABILITIES> 7,470,700 <BONDS> 0 <COMMON> 3,869,600 <PREFERRED-MANDATORY> 0 <PREFERRED> 227,600 <OTHER-SE> (149,100) <TOTAL-LIABILITY-AND-EQUITY> 13,059,500 <SALES> 3,593,500 <TOTAL-REVENUES> 3,792,200 <CGS> 2,240,600 <TOTAL-COSTS> 2,439,300 <OTHER-EXPENSES> (197,500) <LOSS-PROVISION> 0 <INTEREST-EXPENSE> (73,600) <INCOME-PRETAX> (596,800) <INCOME-TAX> (244,600) <INCOME-CONTINUING> (352,200) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (352,200) <EPS-PRIMARY> (0.15) <EPS-DILUTED> 0