Benihana Inc. Reports Operating Results for Second Quarter.

MIAMI--(BUSINESS WIRE)--Oct. 29, 1998--Benihana Inc. (NASDAQ:NMS:BNHN and BNHNA), which owns 50 Teppenyaki style and sushi Japanese restaurants and licenses 13 others, today reported operating results for the second quarter.

For the second quarter ended October 11, 1998, revenues increased 24.3% to $26,347,000 from $21,192,000 in the corresponding period a year earlier. Net income amounted to $1,145,000 compared with $1,140,000 in the corresponding year-earlier period, with diluted earnings per share in both periods equal to 18 cents per share.

For the first half, revenues amounted to $61,165,000 compared with $48,781,000 in the corresponding year-earlier period, an increase of 25.4%. Net income totaled $2,313,000 or 36 cents per share compared with $2,780,000 or 44 cents per share, a year ago.

"This quarter's results represent a significant improvement from the first quarter this year, and have put us back on pace with our prior year record setting results," said Joel A. Schwartz, president. "We're enjoying excellent traffic growth in established Benihana restaurants and in those recently acquired Samurai and Kyoto restaurants where we have completed the conversion to Benihana."

Schwartz said that regarding same store sales, guest counts were up 6.1% and revenues grew 6.6%. "We are very pleased with our company's second quarter revenue performance."

"Operating results at several of the recently acquired nine Samurai and Kyoto restaurants are now responding to the physical improvements we made and marketing programs which we instituted to conform to traditional Benihana appearance and quality of service standards," said Schwartz. "Traffic has rebounded strongly at the locations where the program have been completed and the new marketing efforts instituted, and we anticipate further gains at those locations as well as the remaining restaurants now undergoing conversion. Profits for the quarter were positively affected when compared to the first quarter by earnings from the Rudy's Restaurant Group units acquired December 1997, after taking into account amortization of goodwill and interest on acquisition indebtedness."

A new Benihana restaurant under construction in Ontario, CA is expected to open as scheduled later this fiscal year. The company also has under way plans to open additional Benihana restaurants. Meanwhile, Benihana is building its second Sushi Doraku by Benihana in Chicago, Ill., following the initial successful launch of its first unit in Fort Lauderdale, Fla. New Benihana restaurant franchise agreements were also recently concluded for units in Alaska and Peru, which also are anticipated to be in operation next year. Mr. Schwartz noted that, "while we expect these expansion activities will not be making an immediate contribution to earnings, we believe such investments are necessary to create long-term value.

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, industry cyclicality, fluctuations in customer demand, the seasonal nature of the business, fluctuations on 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. -0-

                             BENIHANA INC.

                                  Three Four-Week Periods Ended
                                    10/11/98        10/12/97

Revenues                          $26,347,000      $21,192,000
Gross Profit                      $19,218,000      $15,577,000
Pre-Tax Income                    $ 1,675,000      $ 1,569,000
Net Income                        $ 1,145,000      $ 1,140,000
EPS-Diluted                       $      0.18      $      0.18
Average Shares & Equivalents
 - Diluted                          6,309,000     6,362,000


                                   Seven Four-Week Periods Ended
                                    10/11/98        10/12/97

Revenues                          $61,165,000      $48,781,000
Gross Profit                      $44,607,000      $35,947,000
Pre-Tax Income                    $ 3,345,000      $ 4,000,000
Net Income                        $ 2,313,000      $ 2,780,000
EPS-Diluted                       $      0.36      $      0.44
Average Shares & Equivalents
 - Diluted                          6,405,000        6,379,000