Ark Restaurants Reports Second Fiscal Quarter Results.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 23, 2001

Ark Restaurants Corp. (Nasdaq:ARKR) for the second fiscal quarter ended March 31, 2001 reported net sales of $28,417,000 compared with $25,765,000 for the fiscal quarter ended April 1, 2000.

Earnings before interest, taxes depreciation and amortization (EBITDA) for the latest quarter was $493,000 as compared to an EBITDA loss of $5,849,000 last year. There was a net loss for the latest quarter of $1,000,000 or $.31 per share, as compared to a net loss of $4,977,000, or $1.56 per share, in the prior year's quarter. Last year's quarter included an after tax charge of $3,198,000 or $1.01 per share, from the company's withdrawal from the operation of restaurants in Southfield, Michigan.

For the six months net sales were $59,231,000 compared with $52,722,000 last year. EBITDA for the six months was $3,002,000 as compared to an EBITDA loss of $4,308,000 last year. There was a net loss for the latest six months of $775,000, or $.24 per share, as compared with a net loss of $4,885,000, or $1.53 per share, last year.

Same store sales in the quarter at company owned restaurants increased by 0.6% and for the six months same store sales increased by 0.8%.

In commenting on the results, Michael Weinstein, president said, "We are pleased with the results at most of our restaurants. Our operations at the New York-New York Hotel & Casino continue to be very strong. Operations at the Venetian Casino Resort have been profitable this year and are continuing to improve. Desert Passage, adjoining the Aladdin Resort & Casino, our most recent Las Vegas project, is improving monthly. We expect to continue this improvement although the location will not reach profitability this year.

"As a highly seasonal business with significant outdoor seating we generate substantial cash flow and earnings in the June and September quarters. We continue to be optimistic about results for the fiscal year. In the absence of any major openings, cash flow will be applied largely to debt reduction," Mr. Weinstein concluded.

Ark Restaurants owns and operates 25 restaurants, 19 fast food concepts, catering operations and wholesale and retail bakeries. Twelve restaurants are located in New York City; 7 in Las Vegas, Nevada; 4 in Washington, DC; and one in Islamorada, Florida. The Las Vegas operations include three restaurants within the New York-New York Hotel & Casino Resort and operation of the Resort's room service, banquet facilities, employee dining room and nine smaller cafe operations. Three restaurants and bars within the Venetian Casino Resort as well as four food court concepts; six food court concepts within Desert Passage adjoining the Aladdin Resort & Casino along with one restaurant, and one restaurant within the Forum Shops at Caesar's Shopping Center.

Following is a summary of unaudited comparative results.

                               13 Weeks Ended        26 Weeks Ended
                           March 31,    April 1,  March 31,   April 1,
                              2001        2000      2001        2000
                               (000's omitted except per share data)

Net sales                   $28,417     $25,765   $59,231     $52,722

Income (Loss) from
  restaurant operations         590      (5,093)    3,244      (3,053)

General & administrative
  expenses                    1,670       2,054     3,302       3,686

Operating income (loss)      (1,080)     (7,147)      (58)     (6,739)


Other expense:
  Interest, net                 624         516     1,333         608
  Other income                  (91)        (28)     (141)       (154)
Total other expense
  (income), net                 533         488     1,192         454

Loss before income
  tax benefit                (1,613)(b)  (7,635)(c) (1,250)    (7,193)
Benefit for income taxes       (613)     (2,658)      (475)    (2,498)

Net loss before
  accounting change          (1,000)     (4,977)     (775)     (4,695)

Cumulative effect of
  accounting change (a)          --          --        --        (190)

Net loss                    ($1,000)    ($4,977)    ($775)    ($4,885)

Per share Information
- Diluted:
Net Loss before accounting
  change                      ($.31)     ($1.56)    ($.24)     ($1.47)
Cumulative effect of
  accounting change (a)          --          --        --        (.06)
Net loss                      ($.31)     ($1.56)    ($.24)     ($1.53)
Weighted average number of
 shares outstanding - diluted 3,182       3,182     3,182       3,191

EBITDA (d)                     $493     ($5,849)   $3,002     ($4,308)

(a) Adoption of Statement of Position 98-5, "Reporting on the

Costs of Start-up Activities"

(b) Includes $150,000 pre-tax, or $.03 per share after tax, due to

a partial write-off of a note receivable which the company

collected in March 2001. The note was issued in March 2000

when the Company withdrew from the operation of restaurants in

Southfield, Michigan.

(c) Includes losses of $4,846,000 pre-tax, or $1.01 per share

after tax, due to the company's withdrawal from the operation

of restaurants in Southfield, Michigan and also includes

$491,000 pre-tax, or $.10 per share after tax, of expenses and

losses on the anticipated sale of two restaurants.

(d) EBITDA does not purport to represent cash provided by

operating activities as reflected in the Company's

consolidated financial statements, is not a measure of

financial performance under generally accepted accounting

principles and should not be considered in isolation or as a

substitute for measures of performance prepared in accordance 

with generally accepted accounting principles.

Except for historical information, this news release contains forward-looking statements which involve unknown risks and uncertainties that may cause the company's actual results or outcomes to be materially different from those anticipated and discussed herein. Important factors that might cause such differences are discussed in the company's filings with the Securities and Exchange Commission.