Barbeques Galore Reports Fourth Fiscal Quarter Sales.

Business Editors

IRVINE, Calif.--(BUSINESS WIRE)--Feb. 8, 2001

Barbeques Galore Limited (Nasdaq:BBQZ) today announced a 4.9% increase in U.S. same-store sales for its fourth fiscal quarter ended January 31, 2001.

Same-store sales at the company's Australian locations for the same period fell by 0.8%.

Net sales advanced 17.6% in the U.S. to $21.6 million from $18.4 million in the prior-year period. In Australia, net sales decreased to $30.4 million from $35.6 million for the same period a year ago, and in Australian dollars, rose to A$56.2 million from A$55.1 million, respectively.

Total company net sales for the fourth fiscal quarter decreased 3.5% to $52.0 million from $53.9 million for the corresponding quarter last year.

For the fiscal year ended January 31, 2001, U.S. same-store sales increased 6.4% over the same period a year ago, and Australian same-store sales increased 1.4%.

Net sales increased 18.3% in the U.S. for the 2001 fiscal year to $93.3 million from $78.9 million a year ago. Net sales in Australia decreased 9.5% to $78.9 million from $87.2 million for last year, and in Australian dollars, rose 4.9% to A$139.8 million from A$133.3 million. Total company net sales for the 12-month period rose 3.7% to $172.2 million from $166.1 million last year.

The company said that falling consumer confidence in both countries has led to generally weakened demand for consumer durables. In addition, the weak Australian dollar and a shift to lower-end price-sensitive products during the all-important Christmas season placed pressure on margins.

The company expects that these factors will result in lower profits for the fourth quarter and year ended January 31, 2001, as compared with the corresponding prior-year periods.

During the fourth quarter, Barbeques Galore opened new company stores in South Las Vegas, and in Frisco, Texas. Both new units feature the Omaha Steaks store-within-a-store program.

The average exchange rate between the Australian dollar and the U.S. dollar for the quarter ended January 31, 2001 was A$1 = US$0.5413, which is a 16.0% decline in the Australian dollar from the corresponding quarter last year, where A$1 = US$0.6441.

A retail goods and services tax was introduced in Australia on July 1, 2000, and the previously applied wholesale sales tax was abolished. In order to make proper comparisons for reporting purposes, the wholesale sales tax on Australian sales has been removed from the July 1999 through January 2000 sales and the sales for July 2000 through January 2001 do not include the goods and services tax.

Barbeques Galore is the leading chain of specialty retail stores devoted to sales of barbecues, fireside products and related accessories. The company owns and operates 64 stores in the U.S. and 35 stores in Australia.

In addition, it has 11 franchised stores in the U.S. and 49 licensed stores in Australia. Through its e-commerce Web site, www.bbqgalore.com, the company sells an extensive line of barbecue and fireside products and related accessories.

This press release contains forward-looking statements that involve risks and uncertainties that could cause results to differ materially from those contained in these forward-looking statements. Such statements include, but are not limited to, expected results for the fourth quarter and year ended January 31, 2001, and other "Risk Factors" as mentioned in the company's filings from time to time with the Securities and Exchange Commission.