Back Yard Burgers Announces 40-Unit Development Agreement With Black Angus Burgers, Inc.

Business Editors

MEMPHIS, Tenn.--(BUSINESS WIRE)--May 23, 2002

Back Yard Burgers, Inc. (Nasdaq SmallCap:BYBI) today announced that on May 22, 2002, the company entered into a 40-unit development agreement with Black Angus Burgers, Inc.

The development agreement contemplates that Black Angus Burgers, Inc. will open 40 Back Yard Burgers stand-alone franchises over the next 10 years, including 22 restaurants in the Tampa/St. Petersburg and Lakeland, Florida, areas and 18 restaurants in certain counties of South Carolina, namely the metropolitan areas of Charleston, Columbia and Myrtle Beach.

Black Angus Burgers, Inc. is solely owned and controlled by John McGrath of JEM Restaurants. Mr. McGrath is a majority owner of various entities under the JEM Restaurants umbrella. JEM Restaurants, based in Charleston, South Carolina, currently operates approximately 60 restaurants as a franchisee of Taco Bell, KFC and Pizza Hut brands of YUM! Brands, Inc., formerly Tricon Global Restaurants, Inc. Mr. McGrath is a former market manager for Taco Bell and became a Taco Bell franchisee in 1998. Yum! Brands, Inc. is not a party to the development agreement with Black Angus Burgers, Inc.

As of May 23, 2002, the Back Yard Burgers, Inc. restaurant system comprised 104 units, including 38 company-operated stores and 66 franchised stores. Expansion plans for the remainder of 2002, inclusive of the restaurants to be opened under the development agreement with Black Angus Burgers, Inc., include four company-operated stores, seven franchised stores and five outlets co-branded with Taco Bell, Pizza Hut and/or KFC operations under the Multi-Brand Development Agreement with YUM! Brands, Inc.

Back Yard Burgers operates and franchises quick-service restaurants in Memphis, Little Rock, Nashville and 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 2002. 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; 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.