Advantica Bondholders Form Unofficial Committee.

Business Editors

NEW YORK--(BUSINESS WIRE)--January 16, 2002

A group of holders of 11 1/4% Senior Notes due 2008 of Advantica Restaurant Group, Inc. (OTCBB:DINE) have formed an unofficial committee seeking to oppose the proposed exchange offer described in a registration statement filed by Advantica with the SEC on December 28, 2001.

As proposed, Advantica would offer to exchange up to $204,050,000 12 3/4% Senior Notes due 2007 issued by it and its Denny's Holdings, Inc. subsidiary for up to $265,000,000 of the outstanding 11 1/4% Senior Notes due 2008 issued by Advantica. The current members of the committee hold approximately $200 million of Senior Notes in the aggregate and expect the committee membership to increase as bondholders become aware of the existence of the committee.

In a letter to Advantica, the committee indicated that while its members are not opposed to a deleveraging transaction of some type, the elimination of $60 million in principal proposed by Advantica is not appropriate or fair to bondholders. The committee has offered to negotiate a more balanced and comprehensive approach to deleveraging. Senior Note holders can contact either of the following two committee members, Robert Davenport at Cerberus Capital [phone] or Eric Johnson at Conseco Capital Management [phone], if you are interested in participating on the committee. An organizational teleconference for Senior Note holders will be held on January 18 at 11:30a.m. (EST).