Prime Restaurants Inc.
TSX : EAT

Prime Restaurants Inc.

January 10, 2012 14:38 ET

Prime Restaurants Inc. Completes Sale to Fairfax

MISSISSAUGA, ONTARIO--(Marketwire - Jan. 10, 2012) - Prime Restaurants Inc. ("PRI" or the "Company") (TSX:EAT) is pleased to announce the successful completion of the previously announced plan of arrangement pursuant to which 7948883 Canada Inc. (the "Purchaser"), a wholly-owned subsidiary of Fairfax Financial Holdings Limited ("Fairfax"), acquired all of the issued and outstanding class A limited voting shares ("Shares") of the Company (the "Transaction"). Pursuant to the Transaction, holders of Shares received $7.50 per Share in cash from the Purchaser and a special dividend in the amount of $0.08 per Share from the Company.

"The completion of the sale of Prime to Fairfax marks the culmination of the respective contributions of Prime's employees, franchisees, management team, board of directors and everyone else who has played a role in the Company's significant success over the past 30 years. We look forward to continuing to welcome the public to all of our restaurants as we move forward with Fairfax," stated John A. Rothschild, Chief Executive Officer of the Company.

With the completion of the Transaction, the Company's Shares will cease to be listed on the Toronto Stock Exchange on or about the close of business on January 10, 2012. The Company intends to apply to the relevant securities regulatory authorities to cease to be a reporting issuer in the applicable jurisdictions in Canada.

Details of the Transaction are contained in the amended and restated management information circular of the Company dated December 5, 2011, which can be found at www.sedar.com.

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.

About Fairfax Financial Holdings Limited

Fairfax is a financial services holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management. Additional information about Fairfax can be found at www.fairfax.ca.

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 2011 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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