APPLE SOUTH REPORTS 56% INCREASE IN THIRD QUARTER SALES.

(Nasdaq/NM:APSO), the nation's largest operator of Applebee's Neighborhood Grill & Bar restaurants, today announced record results for the third quarter and first nine months ended October 1, 1995.

Net sales for the three months ended October 1, 1995 totaled $88.9 million, up 56 percent from $57.1 million a year earlier. Net earnings for the quarter of $4.6 million reflect a $1.3 million after-tax charge for expenses, predominantly related to the pending merger with DF&R Restaurants, Inc. announced on August 15, 1995 and expected to close in the fourth quarter. These earnings compare to $3.6 million for the third quarter last year. Earnings per share for the quarter were $.15 ($.19 before the after-tax charge of $.04) on 30.7 million weighted average shares outstanding compared to $.14 per share based on 26.4 million weighted average shares outstanding for the third quarter in 1994.

Sales for the first nine months of 1995 were $238.6 million, up 49 percent from $160.0 million for the same period in 1994. Net earnings for the nine months increased to $13.5 million or $.47 per share ($14.8 million or $.51 per share before the after-tax charge) from $9.6 million or $.37 per share in the first nine months of 1994. According to Tom E. DuPree, Jr., Chairman and Chief Executive Officer, "The shareholder meeting to vote on the merger whereby DF&R Restaurants would become a wholly owned subsidiary of Apple South is scheduled for November 17. We believe that Don Pablo's will provide an excellent additional growth vehicle for Apple South. DF&R, currently operating 44 Don Pablo's and 12 Harrigan's, has previously announced plans to add 18 Don Pablo's restaurants in 1996."

Commenting on the third quarter, DuPree said, "We now expect to open a total of 38 Applebee's in 1995, up from the previously announced 35, and are confident that we'll open eight new Tomato Rumba's for the year. Apple South is also well positioned for aggressive expansion in 1996 and beyond. "In addition to adding 12 Applebee's restaurants during the quarter, we have made significant progress in improving the margins of the Applebee's restaurants acquired in the first half of the year," DuPree said. "The acquisitions in the Midwest completed during the first half of 1995 secure our system-wide rights to franchise territory which we believe can support more than 400 Applebee's restaurants.

"We have three more months of experience with our new concept, Tomato Rumba's Pastaria Grill, and are confident in our decision to convert our Gianni's Little Italy restaurants to Tomato Rumba's. During the quarter, we added five Tomato Rumba's restaurants including two new restaurants and three conversions. Tomato Rumba's will enter its largest metropolitan market, Atlanta, when we open five restaurants, three by conversion, in the fourth quarter.

"We will continue to pursue growth opportunities supported by our strong financial position and ability to successfully execute our growth plans. Including the addition of DF&R, we expect to be operating a total of 271 restaurants by the end of 1995, up from 143 at the close of 1994, and we plan to add 68 restaurants in 1996. "

Apple South operated a total of 206 restaurants primarily in the South and Midwest at the end of the third quarter, including 177 Applebee's Neighborhood Grill and Bar restaurants, 19 pastaria grill restaurants operated as either Tomato Rumba's Pastaria Grill or Gianni's Little Italy, and 10 Hardee's. -0-

                             APPLE SOUTH, INC.
                           Financial Highlights
                 (in thousands, except per share amounts)

                                             Three Months Ended
                                         October 1,     September 30,
                                           1995(a)          1994
Sales                                   $    88,866      $     57,087
Net earnings                            $     4,608      $      3,596
Earnings per share                      $      0.15      $       0.14
Average weighted shares outstanding          30,707            26,358

                                              Nine Months Ended
                                         October 1,     September 30,
                                           1995(a)           1994
Sales                                   $   238,590      $    160,005
Net earnings                            $    13,543      $      9,623
Earnings per share                      $      0.47      $       0.37
Average weighted shares outstanding          29,101            26,340

(a) Earnings per share were $.19 for the three months and $.51 for the
    nine months before the after-tax charge of $1.3 million or $.04 per
    share.

CONTACT: Apple South, Inc., Madison

Erich Booth, 706/342-4552