Edward B. Alexander
Vice President of Finance
(904) 249-4197 September 8, 1997
Family Steak Houses of Florida, Inc. (NASD:RYFL) announced today that it
has filed suit against Bisco Industries, Inc., Glen F. Ceiley and the
Bisco Industries, Inc. Profit Sharing and Savings Plan. The suit
alleges that Bisco violated numerous federal securities laws in its hostile
bid to take over Family Steak Houses of Florida, Inc. The suit also asks the
Court to declare that Bisco, Ceiley and certain other shareholders have been
acting in concert with respect to the takeover, and have therefore triggered
certain provisions of the Company's Shareholder Rights Agreement.
Lewis E. Christman, Jr., President and CEO of Family Steak Houses of
Florida, Inc., stated that: "The Company regrets having to resort to
litigation. However, since Bisco and Ceiley have apparently violated
federal securities laws, and we believe such activities will continue,
the Company has no alternative but to pursue litigation in order to protect
the Company and its shareholders. Bisco's efforts have resulted in a waste
of the Company's time and money, which resources could have been better
used to benefit the Company and its shareholders. As a result, the Board of
Directors has determined that it is in the Company's best interest to seek
to put a stop to Bisco's ongoing, harassing and costly takeover efforts.
In light of the fact that litigation is now pending, the Company is unable to
comment further on the matter at this time.
