Prime Restaurants Inc.
TSX : EAT

Prime Restaurants Inc.

June 20, 2011 17:00 ET

Prime Restaurants Inc. Announces Normal Course Issuer Bid

MISSISSAUGA, ONTARIO--(Marketwire - June 20, 2011) - Prime Restaurants Inc. ("PRI" or the "Company") (TSX:EAT) announced today that the Toronto Stock Exchange ("TSX") has accepted its notice of intention to make a normal course issuer bid ("NCIB").

The notice provides that the Company may, during the 12-month period commencing June 23, 2011 and ending June 22, 2012, purchase on the TSX the lesser of (i) 147,571 class A limited voting Shares in total, being approximately 2.00% of the Company's outstanding class A limited voting shares and (ii) the amount of class A limited voting shares that can be acquired for $500,000 during the course of the NCIB. As of the date hereof, 7,378,552 class A limited voting shares are outstanding. The aggregate number of class A limited voting shares that the Company may purchase during any trading day will not exceed 1,328 class A limited voting shares, being 25% of the average daily volume of the class A limited voting shares based on the trading volume of the TSX for the most recently completed six calendar months preceding the date of the Company's notice of intention, subject to the Company's ability to make block purchases through the facilities of the TSX in accordance with the TSX rules. Any class A limited voting shares purchased pursuant to this NCIB will be cancelled by PRI.

Purchases will be made at market prices through the facilities of the TSX as appropriate opportunities arise from time to time. The Company intends to fund the purchases out of its available cash. The Company believes that the purchase of its class A limited voting shares represents an investment opportunity and a worthwhile use of its resources.

The Company also entered into a pre-defined plan (the "Automatic Share Purchase Plan") with its designated broker to allow for the repurchase of class A limited voting shares at times throughout its NCIB when it ordinarily would not be permitted to repurchase class A limited voting shares in the market due to its own internal trading blackout periods, insider trading rules or otherwise. Subject to certain parameters and restrictions, the Company's broker may purchase class A limited voting shares under the Automatic Share Purchase Plan, during such times referred to above, provided that the Broker is not, at such times, in possession of undisclosed material information about the Company.

About Prime Restaurants Inc.

PRI franchises, owns and operates one of Canada's leading networks of casual dining restaurants and pubs. With such well-respected brands as East Side Mario's, Casey's, Fionn MacCool's, D'Arcy McGee's, Paddy Flaherty's, Tir nan Óg, and Bier Markt, Prime has been delivering quality, value and a superior guest experience for more than thirty years. Prime's class A limited voting shares are listed on the Toronto Stock Exchange under the symbol "EAT".

Forward-Looking Statements

The public communications of PRI often include written or oral forward-looking statements. Statements of this type are included in this news release, and may be included in filings with Canadian securities regulators, or in other communications. Forward-looking statements may involve, but are not limited to, comments with respect to our objectives for 2010 and beyond, our strategies or planned future actions, and our targets or expectations for our financial performance and condition. All statements, other than statements of historical fact, contained in this news release are forward-looking statements, including, without limitation, statements regarding the future financial position and operations, business strategy, plans and objectives of or involving PRI. Readers can identify many of these statements by looking for words such as "believe", "expects", "will", "intends", "projects", "anticipates", "estimates", "continues" and similar words or the negative thereof. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.

The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this news release are made as of the date of this news release. Except as required by applicable securities laws, PRI does not undertake to update any forward-looking statement, whether written or oral, that may make or that may be made, from time to time.

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