SOURCE: Prime Restaurants, Inc.

October 30, 2007 08:57 ET

Prime Restaurants, Inc. Announces a Three Restaurant Acquisition/Establishment Deal

FT. MYERS, FL--(Marketwire - October 30, 2007) - Prime Restaurants, Inc. (PINKSHEETS: PRSU) today announced that it has entered into an agreement to acquire/establish three restaurants in the New York metropolitan area equal or better than its Flagship Ft. Meyers, Florida location.

The agreement calls for the three restaurants to be located (one each) in New York, New Jersey and Connecticut that will continue the already established brand name of The Sanibel-Palms Steakhouse and its previously announced growth plan.

The company has entered into this agreement with a prominent and established restaurant broker/dealer with the requirement of the acquisition being completed by year's end. It is the company's intent to grow the company's brand name through acquisitions and/or franchise/licensing agreements.

"It is the company's intent to establish 10 additional locations or better within the next year, the company intends to accomplish this with cash on hand and/or debt financing, this decision has been made so as not to dilute the share price of the company's securities. I as the CEO of the company believe that my business plan going forward will reward the shareholders along with myself at day's end," said Mr. Galo President and CEO of the company.

Mr. Galo also stated, "That it is still vigorously negotiating the acquisition of a multi-million dollar previously announced acquisition of a major supplier of restaurant equipment and builder of restaurants and expects the deal to be executed shortly, as it has taken longer than expected, I am confident that it will become reality."

About Prime Restaurants, Inc.

Prime Restaurants, Inc. is a Restaurant Holding Company devoted to the restaurant and food service industry, with an aggressive growth plan while continuing to build value for its shareholders. The company's capitalization is presented below:

Authorized Common Shares:              180,000,000
Restricted Common Shares:              155,733,240
Common Shares in the Public Float:      24,266,760

This press release does not constitute an offer of any securities for sale. This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the company's limited operating history and history of losses, the inability to successfully obtain further funding, the inability to raise capital on terms acceptable to the company, the inability to compete effectively in the marketplace, the inability to complete the proposed acquisition and such other risks that could cause the actual results to differ materially from those contained in the company's projections or forward-looking statements. All forward-looking statements in this press release are based on information available to the company as of the date hereof, and the company undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.

Contact Information

  • Contact:
    Prime Restaurants, Inc.
    Investor Relations
    Tel: 1-866-532-5908
    Fax: 1-239-437-5777