Applebee's International Enters into Agreement to Acquire 12 Franchise Restaurants.

OVERLAND PARK, Kan. -- Applebee's International, Inc. (Nasdaq:APPB) announced today that it has reached an agreement with The Ozark Apples, Inc., an existing Applebee's franchisee, to acquire the assets of 12 Applebee's restaurants. The 12 restaurants, one of which is currently under development and expected to open in June, are located in Missouri, Kansas and Arkansas.

Steve Lumpkin, chief financial officer, said, "As we've previously stated, part of our growth strategy is to use our strong balance sheet and substantial free cash flow for franchise acquisitions. The addition of these restaurants will provide geographic and operations synergy to our existing base of company restaurants in Kansas City and St. Louis."

Lumpkin continued, "Fiscal year 2004 comparable sales for these restaurants were higher than the system average, and average weekly sales were in excess of $50,000. We believe the territory in which these restaurants are located will ultimately support a total of more than 20 Applebee's restaurants. We look forward to welcoming this team of associates and their strong operating culture to Applebee's International."

The acquisition of the restaurants is anticipated to close in the second quarter of 2005, subject to obtaining operating licenses and other third-party consents. The company expects the addition of these restaurants to be slightly accretive to fiscal year 2005 earnings.

Applebee's International, Inc., headquartered in Overland Park, Kan., develops, franchises and operates restaurants under the Applebee's Neighborhood Grill & Bar brand, the largest casual dining concept in the world. There are nearly 1,700 Applebee's restaurants operating system-wide in 49 states and 12 international countries. Additional information on Applebee's International can be found at the company's website (www.applebees.com).

Certain statements contained in this release are forward-looking and based on current expectations. There are several risks and uncertainties that could cause actual results to differ materially from those described, including but not limited to the ability of the company and its franchisees to open and operate additional restaurants profitably, the ability of its franchisees to obtain financing, the continued growth of its franchisees, and its ability to attract and retain qualified franchisees, the impact of intense competition in the casual dining segment of the restaurant industry, and its ability to control restaurant operating costs which are impacted by market changes, minimum wage and other employment laws, food costs and inflation. For additional discussion of the principal factors that could cause actual results to be materially different, the reader is referred to the company's current report on Form 8-K filed with the Securities and Exchange Commission on February 9, 2005. The company disclaims any obligation to update these forward-looking statements.