BFX Hospitality Group Inc. Announces Fourth Quarter Results.

FORT WORTH, Texas--(BUSINESS WIRE)--Nov. 15, 1999--

Robert H. McLean, Chairman of the Board and Chief Executive Officer of BFX Hospitality Group Inc. (AMEX:BFX), announced today a net loss of $1,557,000, or $.39 per share for its fourth quarter ended Sept. 30, 1999. For the same period last year, the net loss was $1,014,000, or $.21 per share.

For the year ended Sept. 30, 1999, the net loss was $1,785,000 per $.44 per share. For the same period last year, the net loss was $2,509,000 or $.47 per share.

In making the announcement, Mr. McLean stated, "The loss for the current quarter reflects a loss of $1,525,000 or $.38 per share primarily relating to a write-down of the Cabo unit located in Fort Worth and the original Cabo unit, located in Shepherd Plaza, west of downtown Houston. As previously announced, in response to customer demand we have made a number of changes in the Fort Worth unit. As a result, the operating results of this unit have improved but they are still well below our original expectations. We continue to evaluate additional changes to improve this unit. The Cabo unit located in Shepherd Plaza has had to contend with a deterioration in the quality of the shopping center where it is located and although sales have stabilized, they are significantly below historical levels."

Mr. McLean continued, "We are suspending expansion of the Cabo concept until we have resolved the operating problems with the Cabo units located in Fort Worth and at Shepherd Plaza in Houston. As a result, we will not construct the two proposed units in Austin."

Mr. McLean stated further, "The third Cabo unit, located in downtown Houston is continuing to perform extremely well and will be expanded to add a meeting room and on-premises catering capability."

Mr. McLean concluded, "Although our current earnings have been negatively affected by the write-down of two of our Cabo units, our other operations, Cats Meow, the Stockyards Hotel, H3 Ranch, Lucile's and our Cabo unit in downtown Houston have achieved record results and are generating positive earnings and cash flow. We anticipate the operating results for these units will continue into our new year." -0-

                      BFX HOSPITALITY GROUP INC.
                           Earnings Digest
               (In thousands, except per share amount)

                           Three Months Ended    Twelve Months Ended
                             September 30,          September 30,
                           ------------------    -------------------
                             1999      1998        1999       1998
                           --------  --------    --------   --------

Net revenues               $ 4,355   $ 3,383     $17,212    $11,513
                           --------  --------    --------   --------
                           --------  --------    --------   --------

Net loss                   $(1,557)  $(1,014)    $(1,785)   $(2,509)
                           --------  --------    --------   --------
                           --------  --------    --------   --------

Basic and diluted earnings
 per share:

Net loss                   $ (0.39)  $ (0.21)    $ (0.44)   $ (0.47)
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