Back Yard Burgers Announces 25-Unit Development Agreement With Well Done Enterprises, Inc.

Business Editors

MEMPHIS, Tenn.--(BUSINESS WIRE)--March 4, 2003

Back Yard Burgers, Inc. (Nasdaq SmallCap:BYBI) today announced that on March 3, 2003, the company entered into a 25-unit development agreement with Well Done Enterprises, Inc.

The development agreement contemplates that Well Done Enterprises, Inc. will open 25 Back Yard Burgers franchises over the next 10 years, including 23 restaurants in the Washington, D.C., area and two restaurants in the State College, Pa., area.

Well Done Enterprises, Inc. is owned by Ben Farahani and other restaurant industry veterans. Farahani is the former Director of Marketing and Development for the Central Pennsylvania Subway Development Corporation, which has developed 135 Subway franchises. Ben Farahani currently owns and operates nine Subway units with two additional units under construction.

Other development agreements recently executed by the company include a six-unit development agreement with Ole South Land and Development, LLC to develop new locations in the Lafayette and Baton Rouge, La., areas and a five-unit development agreement with CLR Management, Inc. to develop new locations in the Ft. Walton and Destin, Fla., areas. The company has also recently executed agreements for the development of a franchised store in Waco, Texas, and a franchised store in Foley, Alabama.

As of March 4, 2003, the Back Yard Burgers, Inc. restaurant system comprised 122 units, including 42 company-operated stores and 80 franchised stores. Unit activity during fiscal year 2003 through March 4, 2003, includes the opening of a franchised store in each of Hattiesburg, Miss., Mt. Pleasant, S.C., and Hopkinsville, Ky. Expansion plans for the remainder of 2003, inclusive of the restaurants to be opened under the development agreement with Well Done Enterprises, Inc., include three company-operated stores and 18 or more franchised stores (including five co-branded restaurants with Taco Bell operations under the company's Multi-Brand Development Agreement with YUM! Brands, Inc.).

Back Yard Burgers operates and franchises quick-service restaurants in the Memphis, Little Rock and Nashville markets as well as other markets across 17 states. The restaurants specialize in charbroiled, freshly prepared, great-tasting food. As its name implies, Back Yard Burgers strives to offer the same high-quality ingredients and special care typified by outdoor grilling in the backyard. Its menu features made-to-order gourmet Black Angus hamburgers and chicken sandwiches - charbroiled over an open flame, fresh salads, chili and other special entrees, as well as hand-dipped milkshakes, fresh-made lemonade and fresh-baked cobblers.

This press release contains forward-looking statements within the meaning of the federal securities laws, including statements regarding the number of company-operated and franchised restaurants and co-branded outlets the company anticipates opening during fiscal year 2003. There are certain important factors that could cause actual results to differ materially from those anticipated by the statements made herein. Among the factors that could cause actual results to differ from predicted or expected results are: delays in opening new stores or outlets because of weather, local permitting or other reasons; increased competition and competitive discounting; cost increases or shortages in raw food products; and the possibility of unforeseen events affecting the industry generally. The forward-looking statements reflect management's current expectations. The company undertakes no obligation to publicly release revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events, except as required to be reported under the rules and regulations of the Securities and Exchange Commission.