OSI Restaurant Partners, Inc. Reports First Quarter Results

Revenues for the quarter increased by 7.5% to $1,066,616,000 compared with $992,360,000 during the same quarter last year.

Quarterly Results and Other Information:

• For the three months ended March 31, 2007, adjusting for the conversion costs related to the implementation of the Company's new Partner Equity Program ("PEP"), impairment loss on a corporate plane and certain transaction costs associated with the Company's proposed merger with Kangaroo Acquisition, Inc., diluted earnings per share on an adjusted basis were $0.43. For the three months ended March 31, 2006, diluted earnings per share on an adjusted basis were $0.50, adjusting for the conversion costs related to the implementation of the PEP. Adjusted first quarter diluted earnings per share for both periods do not eliminate what the Company considers to be the ongoing expenses resulting from the implementation of the PEP. These adjusted results are non-GAAP financial measures that are intended to provide comparability between the periods. A reconciliation of reported and adjusted results is included in the following tables.

• For the 2007 quarter compared to 2006, cost of sales decreased by 1.1% as a percentage of restaurant sales, primarily as a result of the impact of certain Outback Steakhouse efficiency initiatives and general price increases, partially offset by increases in beef and produce costs. The Outback Steakhouse efficiency initiatives announced in 2006 reduced cost of sales by 0.7% as a percentage of restaurant sales. Beginning in February 2007, the Company experienced increases in beef costs of approximately 5%, which negatively impacted cost of sales by 0.4% as a percentage of restaurant sales, while all other commodities provided a net 0.1% benefit. The remaining decrease in cost of sales as a percentage of restaurant sales was driven by price increases.

• For the 2007 quarter compared to 2006, labor costs increased by 0.2% as a percentage of restaurant sales due to minimum wage initiatives in several states, which were partially offset by Outback Steakhouse labor efficiencies, a reduction in the conversion costs of PEP (as described previously), as well as general price increases.

• Other restaurant operating expenses for the 2007 quarter were up by 0.5% as a percentage of restaurant sales over the 2006 quarter, primarily as a result of increased advertising at Outback Steakhouse.

• General and administrative costs for the 2007 quarter increased by 0.8% as a percentage of total revenues, primarily as a result of costs associated with the proposed merger transaction, which were 0.6% as a percentage of total revenues and for increases in professional fees for the Outback Steakhouse re-branding initiative and accounting remediation, which were 0.3% as a percentage of total revenues.

• During 2006, the Company communicated a plan at Outback Steakhouse to improve efficiency and revenue through a number of operations initiatives including, but not limited to, improved labor productivity and food cost savings via improved purchasing and reduction of select side item and sauce portions (a plateware initiative). This initiative produced total savings of 0.8% of consolidated restaurant sales during the first quarter of 2007. The Outback Steakhouse efficiency initiative was not fully implemented across all restaurants in the first quarter based on rollout plans that will result in full implementation during the remainder of 2007.

First Quarter - Comparable Store Sales

Sales information for the first quarter was previously released April 5, 2007 on a preliminary basis, as it was subject to final determination of gift card sales. Final sales results are below. Comparable store sales and average unit volumes for the Company's significant restaurant brands for the quarter ended March 31, 2007 compared to the same quarter in 2006 changed by approximately:

                                                   Franchise and

                                         Company-   development  System-wide

                                          owned    joint venture



  Quarter ended March 31, 2007

  Domestic comparable store sales

   (stores open 18 months or more)

     Outback Steakhouses                 -0.3 %        -1.9 %      -0.5 %

     Carrabba's Italian Grills           -1.3 %         n/a        -1.3 %

     Bonefish Grills                     -0.6 %         0.3 %      -0.6 %

     Fleming's Prime Steakhouse and

      Wine Bars                           3.3 %         n/a         3.3 %

     Roy's                               -2.2 %         n/a        -2.2 %



  Domestic average unit volumes

     Outback Steakhouses                  0.0 %        -2.3 %      -0.3 %

     Carrabba's Italian Grills           -2.8 %         n/a        -2.8 %

     Bonefish Grills                     -3.8 %         1.3 %      -3.4 %

     Fleming's Prime Steakhouse and

      Wine Bars                          -1.7 %         n/a        -1.7 %

     Roy's                               -2.6 %         n/a        -2.6 %

Changes in comparable store sales and average unit volumes for domestic, Company-owned restaurants for the quarter include year-to-year menu price changes of approximately:

                                                         Company-owned menu

  Quarter ended March 31, 2007                           price changes (1)

     Outback Steakhouses                                        0.4 %

     Carrabba's Italian Grills                                  3.2 %

     Bonefish Grills                                            1.9 %

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