After 23 Years as Company's Chief Operating Officer Mark Emerson to Leave Max & Erma's at Year's End.

Business Editors

COLUMBUS, Ohio--(BUSINESS WIRE)--Oct. 22, 2003

Mark Emerson, a guiding force in Max & Erma's Restaurants, Inc.'s (Nasdaq:MAXE) climb from a struggling, eight-restaurant operation to one of the country's top casual dining chains with 88 restaurants, has announced his retirement effective December 31, 2003.

Emerson, 56, has been Max & Erma's chief operating officer since joining the company in 1980. He retires as Max & Erma's third largest stockholder and will be employed as a consultant to the Company through 2004. Emerson will also vacate his seat on the Board of Directors of the Company on December 31, 2003.

Todd Barnum, Max & Erma's Chairman and CEO, announced that the Company has named Jim Howenstein as Vice President of Operations and Emerson's successor.

"To say we're going to miss Mark is a bit of an understatement," Barnum said. "He's been a fixture around here for more than two decades and he helped make Max & Erma's the quality company it is. Fortunately, Jim Howenstein has been with Max & Erma's for 13 years and is outstanding in his own right, so we don't expect to miss a beat. And, Mark will be around to consult and help ease Jim into the position."

When Emerson joined Max & Erma's, it was a popular concept, but not profitable. The restaurants had no natural light, the wait staff wore blue jeans, and the food was served in a basket. Advertising was weighted heavily toward alcohol promotions and the average customer was young, male and single.

Things have changed dramatically during his tenure. Max & Erma's has become financially successful and popular. In July, Consumer Reports magazine gave Max & Erma's the highest grade of all casual theme restaurants based on food quality, service, atmosphere and value.

Using a methodical approach, Emerson helped turn around Max & Erma's by installing systems for maintaining internal controls, training materials, job descriptions and responsibilities, and menu development.

"I've always had a personnel philosophy that you place value on each individual's contributions," Emerson said. "This business is fueled by people; each associate at Max & Erma's makes a difference. Through the years, I've strived to create a positive work environment for all our associates at all levels."

Emerson's philosophies led to significant results on many fronts, especially human resources. Last year, Max & Erma's hourly turnover was 85 percent in an industry where the average hourly turnover is significantly higher.

Emerson caught the "restaurant industry bug" early on, and has been hooked ever since. As a teenager, he scooped ice cream for Howard Johnson's. He received his bachelor's degree from Cornell University's School of Hotel Administration. As for his next endeavor, he says, "I'm certainly looking forward to winding down a little, but I wouldn't rule out continuing to be involved in this industry in some capacity."

Headquartered in Columbus, Ohio, Max & Erma's enters its fourth decade in business in 2003. From a single, neighborhood restaurant that opened in 1972 in the German Village section of Columbus, Max & Erma's has grown to 73 company-owned and 16 franchise casual dining restaurants, located primarily in the Midwest and Southeast. A civic-minded company, Max & Erma's lives up to its motto, "the hometown favorite." The company is traded on the NASDAQ National Market System under the symbol, MAXE.