SOURCE: Prime Restaurants, Inc.

August 20, 2007 08:18 ET

Prime Restaurants, Inc. Has Entered Into Negotiations to Acquire a Well-Established Restaurant Developer and Supplier of Restaurant Equipment in the Tri-State Area

FT. MYERS, FL--(Marketwire - August 20, 2007) - Prime Restaurants, Inc. (PINKSHEETS: PRSU) today announced that it has entered negotiations to acquire a well-established restaurant developer and restaurant equipment supplier in the N.Y., N.J. and CT area.

The target company has been in business for more than 25 years and has established accounts with Pepsi-Cola, National Amusements (Owner of Viacom), McDonald's, Burger King, Dunkin' Donuts, Applebee's and many other major national accounts.

"The company has elected not to name the targeted acquisition at this time at the request of the seller. The only reason that the company is announcing this acquisition is that it could have a major impact on Prime Restaurants' operations and share price," said Cris Galo, President & CEO.

Mr. Galo added, "We are very excited about this acquisition and have no doubt it will happen. This acquisition will not only bring major cash flow to the company but it will allow us to tap the resources that the company does not currently have, e.g., acquisition connections, new location development and other resources. We will lock this up within the next week."

About: Prime Restaurants, Inc.

Prime Restaurants is a start-up restaurant holding company with an eye towards rapid expansion and revenue growth within the next 12 to 24 months. The company will focus only on major well-populated areas such as New York, Connecticut, New Jersey, Florida, Pennsylvania and North and South Carolina with locations that will generate a minimum of $2,000,000 per year at each location.

The current share structure of the company is 30,200,000 outstanding of which 24,236,802 are restricted for two years and in management's control, leaving 5,963,198 in the public float.

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