Buffets Holdings, Inc. Total revenues down 2.4% in the first quarter

HIGHLIGHTS:

• Total revenues down 2.4% in the first quarter;

• Same store sales down 0.4% for the quarter;

• Previously announced Merger with Ryan's Restaurant Group closed on November 1, 2006

Buffets Holdings, Inc., the parent company of Buffets, Inc., today reported operating results for its 12-week, first quarter ended September 20, 2006.

Buffets Holdings reported a 2.4% decrease in total sales for the first quarter ended September 20, 2006, as sales decreased to $221.3 million compared to $226.7 million for the comparable prior year period. Average weekly sales for the first quarter of fiscal 2007 increased 2.1% over the comparable prior year period to $54,596. The improvement in average weekly sales reflects positive guest response to the introduction of display grills in 20 restaurants, and the closure of 22 low sales volume restaurants over the past year. Same-store sales for the first quarter of fiscal 2007 decreased by 0.4% as compared to those reported for the prior year period. This decrease was primarily attributable to a 3.0% increase in average check, offset by a 3.4% decline in guest traffic.

Net loss for the first quarter of fiscal 2007 was $1.1 million, as compared to a net income of $3.1 million for the first quarter of fiscal 2006. The decrease in net income was primarily attributable to lower total sales in the first quarter of fiscal 2007 compared with the comparable prior year period, resulting from the closure of 22 underperforming restaurants over the past year, higher interest expense related to rising interest rates on our term loans, the impact of higher accretion of non-cash interest expense on our 137/8% senior discount notes, and merger integration costs related to the merger with Ryan's Restaurant Group.

Merger with Ryan's Restaurant Group Completed

Buffets Holdings' previously announced merger with Ryan's Restaurant Group was completed on November 1, 2006. The combined company, called Buffets, Inc. and headquartered in Eagan, Minnesota, is the nation's largest buffet restaurant chain and one of the five largest companies in the casual and mid-scale dining segment. It has annual revenues greater than $1.7 billion, and operates 672 restaurants in 39 states, principally under the well-respected Ryan's(R), Fire Mountain(R), Old Country Buffet(R) and HomeTown Buffet(R) brands. Ryan's operates as a separate division of Buffets and continues to be based in Greer, South Carolina.

Continued Focus on Key Initiatives

Old Country Buffet(R) and HomeTown Buffet(R) now serve steak in every restaurant six or seven days a week and have received favorable guest response to their fall 'Steakhouse Classics' promotion and related advertising campaign, which was launched in late September. We have continued the testing and installation of our display grill cooking stations and now have twenty units with this retrofit. In addition, Fire Mountain(R), acquired in the merger with Ryan's Restaurant Group, has over 200 display grills in operation.

About Buffet Holdings

Buffets, Inc. currently operates 672 restaurants in 39 states comprised of 663 buffet restaurants and nine Tahoe Joe's Famous Steakhouse(R) restaurants. The buffet restaurants are principally operated under the Old Country Buffet(R), HomeTown Buffet(R), Ryan's(R) and Fire Mountain(R) brands. Buffets also franchises 18 buffet restaurants in seven states. Buffets, Inc. employs approximately 43,000 team members and serves more than 220 million customers annually.



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