Ark Restaurants Announces Financial Results for the Fourth Quarter and Full Year 2008 and Suspends Next Quarterly Dividend

As of December 15, 2008, the Company had cash, cash equivalents and short term investments totaling $11,444,000. As of the same date, the Company had no long-term debt other than $657,000 remaining on a five year purchase money obligation undertaken in connection with the Company's January 8, 2007 acquisition of the Durgin Park Restaurant and the Black Horse Tavern in Boston, Massachusetts.

EBITDA from continuing operations before stock option expense for the three-month period ended September 27, 2008 was $3,977,000 versus $4,233,000 during the same three-month period last year. The Company's income from continuing operations for the three-month period ended September 27, 2008 was $2,016,000, or $0.56 per share ($0.56 per diluted share), as compared to $2,481,000, or $0.69 per share ($0.68 per diluted share), for the same three-month period last year.

Total revenues from continuing operations for the three-month period ended September 27, 2008 were $34,626,000 versus $32,384,000 in the three months ended September 29, 2007. Compared to the same three month period last year, same store sales in the Company's New York City operations increased by 4.3%, same store sales in the Company's Las Vegas operations decreased by 2.9%, same store sales in the Company's Washington D.C. operations decreased by 1.7%, same store sales in Atlantic City decreased 17.4%, same store sales in Connecticut decreased 6.8% and same store sales in Boston increased 4.5%. Company-wide same store sales decreased by 0.6%. Although the Company does not consolidate the sales or the financial results of the Company's managed Florida casino operations (the Company derives income from a management fee arrangement in part based on sales), same store sales at the Company's Hollywood, Florida operations increased by 8.6% and same store sales at the Company's Tampa, Florida operations decreased by 5.5% compared to the same three month period last year. Sales at the Company's Florida operations totaled $3,241,000 during the three month period ended September 27, 2008. Sales from the Company's Las Vegas operations represented 41.3% of the Company's total sales during the three-month period ended September 27, 2008.

For the year ended September 27, 2008, EBITDA from continuing operations before stock option expense was $13,594,000 versus $14,167,000 in fiscal 2007. The Company's income from continuing operations for the year ended September 27, 2008 was $6,978,000, or $1.94 per share ($1.93 per diluted share), as compared to $13,013,000, or $2.22 per share ($2.21 per diluted share), last year.

Total revenues from continuing operations for fiscal 2008 were $125,390,000 versus $117,821,000 in fiscal 2007. Compared to last year, same store sales in the Company's New York City operations increased by 4.3%, same store sales in the Company's Las Vegas operations decreased by 0.2% and same store sales in the Company's Washington D.C. operations decreased by 0.9%, same store sales in Atlantic City decreased 8.2%, same store sales in Connecticut increased 7.9% and same store sales in Boston increased 3.5%. Compared to last year, Company-wide same store sales increased by 0.9%. Same store sales at the Company's Hollywood, Florida operations decreased by 5.8% and same store sales at the Company's Tampa, Florida operations increased by 12.9% compared to last year. Sales at the Company's Florida operations totaled $12,454,000 during the year ended September 27, 2008. Sales from the Company's Las Vegas operations represented 47.1% of the Company's total sales during the year September 27, 2008.

During fiscal 2007, the Company had recognized a $7,814,000 pre-tax gain as a result of the sale of the Company's Lutece and Tsunami locations to Venetian Casino Resort, LLC.

Ark Restaurants owns and operates 20 restaurants and bars, 30 fast food concepts, catering operations and wholesale and retail bakeries. Seven restaurants are located in New York City, four are located in Washington, D.C., five are located in Las Vegas, Nevada, two are located in Atlantic City, New Jersey, one is located at the Foxwoods Resort Casino in Ledyard, Connecticut and one is located in Boston, Massachusetts. The Las Vegas operations include three restaurants within the New York-New York Hotel & Casino Resort and operation of the hotel's room service, banquet facilities, employee dining room and nine food court concepts, one bar within the Venetian Casino Resort as well as three food court concepts. The Florida operations under management include five fast food facilities in Tampa, Florida and seven fast food facilities in Hollywood, Florida, each at a Hard Rock Hotel and Casino operated by the Seminole Indian Tribe at these locations. In Atlantic City, New Jersey, the Company operates a restaurant and a bar in the Resorts Atlantic City Hotel and Casino. In Boston, Massachusetts, the Company operates a restaurant in the Faneuil Hall Marketplace.



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