Benihana Inc. Franchises Four New Restaurants in Venezuela.

Business Editors

MIAMI--(BUSINESS WIRE)--June 1, 2000

Benihana Inc. (NASDAQ:BNHN and BNHNA), operator of the nation's largest chain of Asian restaurants, announced today it has signed an agreement to franchise four new Benihana teppanyaki restaurants in Venezuela, two of which are expected to be developed and open within approximately six months.

The new units will increase to six the number of franchised restaurants Benihana will have in South America.

"Benihana is recognized worldwide for its quality food, excellent dishes and superb, entertaining service, which has proven especially popular in South America," said Joel A. Schwartz, Benihana President.

Benihana currently has signed contracts for nine new franchised restaurants, seven of which could open in the current fiscal year ending April 1, 2001. In addition to the two openings slated for Caracas, Venezuela, five additional franchising units are under development. These include units in San Antonio, Texas, and Milwaukee, Wis., now under construction, and Edison, NJ, Nashville, Tenn., and Belleview, Wash., where the site selection process is underway.

The Benihana units in Venezuela include one to be located in the five-star Euro Building Hotel & Suites. The other will occupy a space where a Japanese restaurant, owned by the present group, currently is located but which will be remodeled to meet Benihana teppanyaki standards. The location of the two other franchised units, to be built before the end of 2002, has not been determined.

The group acquiring the franchise, Inversiones Benhco, has extensive restaurant interests in Venezuela, including 33 Wendy's, 14 American Deli's and one T.G.I. Friday's.

"Franchising represents a way for Benihana to capitalize on its highly regarded brand name," said Tom Vrabel, Benihana's Director of Franchising. "With the nine recent commitments along with other recent openings in Lima, Peru, Austin, Texas and Anchorage, Alaska, we will have doubled the size of the Benihana franchise system in just over a two-year time frame. It is a tribute to the popularity of the brand and the success of our existing franchisees, many of whom have committed to building new units."

Benihana currently operates 50 teppanyaki style restaurants, one Sushi Doraku by Benihana restaurant and two Haru sushi restaurants, in addition to the 13 restaurants it licenses now in operation. New projects to open this fiscal year under Company operations will consist of three traditional Benihanas, two Haru sushi restaurants and two Sushi Doraku by Benihana.

Statements in this press release concerning the Company's business outlook or future economic performance, anticipated profitability, revenues, expenses or other financial items, together with other statements that are not historical facts, are "forward-looking statements" as that term is defined under Federal Securities Laws. "Forward-looking statements" are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those stated in such statements. Such risks, uncertainties and factors include, but are not limited to, changes in customers' tastes and preferences, acceptance of the Company's concepts in new locations, obtaining qualified personnel, industry cyclicality, fluctuations in customer demand, the seasonal nature of the business, fluctuations of commodities costs, the ability to complete construction of new units in a timely manner, obtaining governmental permits on a reasonably timely basis, and general economic conditions, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission.