ARAMARK acquires Flagstar division.

PHILADELPHIA--(BUSINESS WIRE)--Nov. 3, 1994--ARAMARK, a worldwide leader in managed services, Thursday announced it has signed an agreement to acquire the TW Recreational Services subsidiary of Flagstar Companies Inc. (NASDAQ:FLST) for approximately $130 million.

ARAMARK was formerly known as ARA Services.

The TW Recreational Services subsidiary generated over $130 million in sales in 1993 and will significantly increase the annual parks and resorts services revenues for ARAMARK. It will enhance the company's leisure operations, a core business that includes managed services at stadiums, arenas, parks and convention centers nationwide.

ARAMARK, a leading provider of managed services at national and state parks around the country, with this transaction will add operations at over 20 parks in 10 states including Yellowstone National Park, the North Rim of the Grand Canyon, Bryce Canyon National Park, Zion Canyon National Park, Mount Rushmore National Memorial, Ohio's state parks and the Gideon Putnam Hotel & Conference Center in New York.

"This acquisition is a perfect opportunity to build on our core competency in the leisure marketplace and allows us to further leverage our well established strengths in concessions and lodging management," said ARAMARK Chairman and Chief Executive Officer Joseph Neubauer.

He added that the timing is right for expansion of the ARAMARK parks business, noting that attendance in National and State Parks is expected to remain at high levels over the next five years. "Strategic acquisitions like this one are a logical way for us to grow this important part of the ARAMARK business," Neubauer said.

ARAMARK has nearly 25 years of experience in the parks business. It first entered the National Park Service concessions industry in 1971 at Shenandoah National Park in Virginia.

Today, ARAMARK provides a complete range of management services -- from guided tours to fine dining to transportation to hotel management to retail stores at such major locations as Glen Canyon National Recreation Area (Lake Powell, Arizona and Utah), Denali National Park (Alaska), Ellis Island National Monument (New York), Olympic National Park (Washington State), and Mesa Verde National Park (Colorado), as well as other locations which include Pike's Peak (Colorado), Hearst Castle (California) and Bear Mountain (New York).

ARAMARK, through its leisure services division, provides a wide range of food, beverage, catering, lodging and retail merchandising to more than 50 million people annually at stadiums, arenas, race tracks, convention centers, parks and resorts.

ARAMARK has over 130,000 employees serving 15 million people at 500,000 locations in 11 countries every day. The company is employee-owned with 1994 sales exceeding $5 billion. ARAMARK is a worldwide leader in managed services specializing in food, refreshments, uniforms, child care, medical services, facilities management and magazine and book distribution.

Flagstar, one of the nation's largest restaurant companies, owns and operates Denny's, Quincy's Family Steakhouse and El Pollo Loco restaurants and is the largest Franchisee of Hardee's restaurants.

CONTACT: ARAMARK, Philadelphia

              Brian Gail, 215/238-3036,
              David Flaherty, 215/238-3326
                       or
              Flagstar Companies Inc.
              Coleman Sullivan, 803/597-8642 (media),
              Karen Randall, 803/597-8440 (media) or
              Larry Gosnell, 803/597-8658 (investor)