Court Confirms Buffets Holdings, Inc. Plan of Reorganization

Buffets Holdings, Inc. today announced that the U.S. Bankruptcy Court for the District of Delaware has entered an order confirming the company's Plan of Reorganization. The Plan will become effective - and the company will exit bankruptcy protection - as soon as all closing conditions to the Plan and to the company's exit financing have been met. Buffets expects to emerge from Chapter 11 shortly.

Buffets has received commitments totaling $117.5 million in new first lien exit financing from various lenders, which will enable the Company to satisfy its Chapter 11 Plan obligations and provide working capital for ongoing operations. In addition, $139.8 million in second lien rollover financing will remain from the prepetition lenders.

'We are very pleased to have passed this milestone of the Chapter 11 process, and that our emergence from bankruptcy protection is imminent,' said Mike Andrews, Chief Executive Officer of Buffets Holdings. 'We will emerge a stronger and more financially secure enterprise, and we look forward to building on the groundwork laid by our approved Plan of Reorganization by continuing to improve our operations and invest in our business.'

Buffets expects to emerge from its reorganization with a stronger balance sheet, significantly less debt, and greater resources to operate effectively and make investments that ensure it can continue to deliver the highest quality food, service, and value to its guests. Over the past fifteen months, Buffets Holdings has focused its efforts on right-sizing the organization, including streamlining its portfolio of restaurants and reducing operating expenses across the business.

Andrews continued: 'We are very appreciative of all of our Team Members for their tireless commitment to this company. It is largely due to their hard work and dedication that we were able to achieve what we did during the Chapter 11 process. We are also grateful to our creditor groups for their strong endorsement of our Plan of Reorganization. Finally, we thank our guests and our business partners for their support throughout this challenging process.'

Buffets Holdings, Inc. and all of its subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code on January 22, 2008. More information about Buffets Holdings' reorganization is available in the Company Information section of the Company's Web site at www.Buffet.com. Claims information and court filings, including the proposed Plan of Reorganization and Disclosure Statement, are available at http://chapter11.epiqsystems.com/buf.

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