Atomic Burrito Closes Losing Operations; Company to Focus on Profitable Nightclubs.

Business Editors

OKLAHOMA CITY--(BUSINESS WIRE)--Sept. 12, 2000

Atomic Burrito Inc. (Nasdaq:ATOM)("Atomic Burrito") announced today that it had closed two of its unprofitable restaurants over the Labor Day weekend and is currently in negotiations to sell the other three Atomic Burrito restaurants, one of which is expected to occur during September.

With these moves, new President Don W. Grimmett said he hopes to get the company back on the track to profitability. "Our intent is to dispose of those assets which were losing money for us and to concentrate our energies and efforts on our profitable nightclub operations. We believe we are moving in the right direction now."

According to Grimmett, the two restaurants which were closed were losing money for the company, and of the three restaurants remaining open, two are profitable. "We expect to be able to sell or sublease the remaining restaurants in the near future. Hopefully we will be able to reduce our outstanding debt and focus on the future."

Grimmett said he is aggressively pursuing strategies designed to insure long-term success and profitability for the company. "We've been able to operate profitable nightclubs in the past and we expect to continue to do so in the future," he added.

"We have a number of potential acquisition candidates which we are diligently pursuing, doing our due diligence on each one. Keep in mind that during the past two years we have spent a great deal of cash from our nightclub operations on our restaurants, and now we have decided to pursue a different course. We have some attractive possibilities once we dispose of the remaining restaurants."

Grimmett, who jointed Atomic Burrito in late 1996 as Director of Operations, pointed out that the nightclubs that were closed in 1997 were left over from prior management's reign. "Once we disposed of the Tucson and Indianapolis nightclubs, we were able to make a modest profit in 1998," he continued. "We plan to return to the strategy that produced those profits."

Grimmett, who was named President in late August, indicated that the results of the recent actions would most probably not be reflected in the company's financial results until the fourth quarter. "Hopefully, at that time, we will start to see the benefit of our current strategies. Then we hope to make an acquisition or two and have a great 2001."

Atomic Burrito owns and operates two country and western nightclubs under the name "InCahoots" in Wichita and in St. Louis, and has remaining restaurant operations in Tulsa and Norman, Okla. and in Wichita, Kan.

Certain statements in this press release may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain, but not necessarily all, of such forward-looking statements can be identified by the use of foward-terminology such as "anticipates," "believes," "expects," "may," "will," or "should" or other variations thereon, or by discussions of the strategies that involve risks and uncertainties. The actual results of the company or industry results may be materially different from any future results expressed or implied by such forward-looking statements.