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NEWS RELEASE
SANTA BARBARA RESTAURANT GROUP, INC.
Contacts: Santa Barbara Restaurant Group, Inc.
Ted Abajian
Chief Financial Officer
(805) 563-3644, x110
LBW Investments, L.L.C.
Lynn Whiteford
President and Chief Executive Officer
(602) 426-2662
SANTA BARBARA RESTAURANT GROUP COMPLETES
DIVESTITURE OF JB'S FAMILY RESTAURANTS, INC.
SANTA BARBARA, CALIF. - November 14, 2000 - Santa Barbara Restaurant
Group, Inc. (NASDAQ:SBRG) ("SBRG") has completed the previously announced
sale of its JB's Family Restaurants, Inc. ("JB's") subsidiary which operates
JB's and Galaxy Diner restaurants and franchises JB's restaurants to LBW
Investments, L.L.C., a company controlled by Lynn Whiteford the former chief
operating officer of JB's. SBRG received cash proceeds of $8.0 million and a
note for $1.3 million from the buyer. In addition, the buyer assumed JB's
trade payables of $3.5 million, debt obligations of approximately $5.0
million and other long term liabilities of $2.0 million. SBRG will record an
after-tax loss of $3.7 million on this transaction during its fiscal third
quarter of 2000.
William P. Foley II, chairman of the board of directors of SBRG,
stated, "I am very pleased that we have finally completed this very lengthy
transaction. JB's was eroding our profitability having generated net
operating losses of $1.1 million in fiscal 2000." Foley added, "In spite of
the $3.7 million charge resulting from the sale, we have significantly
improved our balance sheet by eliminating $10.0 million of goodwill and $10.5
million of debt and other liabilities. Our management team can now narrow its
focus to developing our core brands."
Lynn Whiteford, president and chief executive officer of JB's stated,
"We believe this is a good transaction for both parties. SBRG has divested an
asset that does not fit their portfolio and we have acquired an 87 unit
regional chain with significant assets that I believe will have improved
results as a private organization."
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Santa Barbara Restaurant Group, Inc.
Press Release
Page 2
SBRG operates 46 La Salsa restaurants, 23 Timber Lodge Steakhouse
restaurants, and five Green Burrito restaurants. The Company also franchises
48 La Salsa restaurants, one Timber Lodge Steakhouse restaurant, 35 Green
Burrito stand-alone restaurants and 214 dual-concept restaurants for a total
of 372 restaurants controlled by SBRG.
"Safe Harbor" Statements under the Private Securities Litigation
Reform Act of 1995: Statements which are not historical facts contained in
this release including the company's ability to complete the sale of JB's
restaurants, achieve growth in the La Salsa brand, open or remodel
restaurants, or the ability of the company to enhance the La Salsa brand are
forward-looking statements that involve risks and uncertainties, including,
but not limited to, product demand and market acceptance risks; the effect of
economic conditions; construction delays; the impact of competitive products
and pricing; and the results of financing efforts and other risks detailed in
the Company's Securities and Exchange Commission filings.
