Benihana Inc. Reports Record Fiscal 2001 Operating Results.

    Business Editors

      MIAMI--(BUSINESS WIRE)--May 30, 2001--Benihana Inc.
(NASDAQ: NMS:BNHN and BNHNA), operator of one of the nation's largest
chain of Asian restaurants, today reported record revenues and net
income for the fourth quarter and fiscal year ended April 1, 2001.
      It marked the Company's 9th consecutive year of increased revenues
and net income.
      For the fourth quarter, total revenues rose 18.3%, to $42.2
million, compared with $35.7 million in the prior year fourth quarter.
Restaurant operating profit rose 7.8%, to $8.0 million, from $7.4
million in the prior year fourth quarter. Net income rose 6.6%, to
$2.9 million, or $0.45 per diluted share, compared with $2.7 million,
or $0.40 per diluted share, in the prior year fourth quarter.
      For the 53 weeks ended April 1, 2001, total revenues amounted to
$163.2 million, up 18.7% from $137.5 million in the 52-weeks ended
March 26, 2000. (The 53rd week represents $3.2 million of revenues).
Restaurant operating profit increased 13.3%, to $29.1 million,
compared with $25.7 million a year ago. Net income for fiscal 2001
increased 4.1%, to $9.1 million, or $1.38 per diluted share, compared
with $8.7 million, or $1.32 per share, in the corresponding
year-earlier period. Total revenues over the past five years have
increased 200%, a compounded annual growth rate of 14.9%.
      "We are very pleased to report another year of growth for Benihana
of revenue and profit," said Joel A. Schwartz, Benihana President. "We
anticipate further gains in the new year just getting underway, as our
Company benefits from new restaurants, reduced restaurant opening
costs, and increasing numbers of customers who continue to recognize
the quality and value Benihana consistently provides."
      The record results last year were achieved even after considering
the costs associated with Benihana's ambitious expansion program.
Benihana expects to open seven new restaurants in fiscal 2002,
compared to three new openings last year. The openings include three
new Haru sushi restaurants, all in New York City; one of the Haru
restaurants, located in Times Square, opened last week. The principal
expenses incurred in new store development last year were in New York
City, one of the nation's highest cost real estate development
markets. In that market rent is paid during the development period, a
factor not typically incurred in other markets. Rent, labor, training
and certain other pre-opening costs related to new stores under
development are expensed as incurred.
      Haru-related development expenses approximated $1.0 million last
year, compared with $147,000 in fiscal 2000, and in the fourth quarter
these costs approximated $275,000, compared to $131,000 in the prior
year's fourth quarter.
      Last year, Benihana opened two Sushi Doraku by Benihana
restaurants, in Miami, FL, and Chicago, IL. Benihana also opened one
of its traditional Benihana restaurants in Monterey, CA. The Company
anticipates in fiscal 2002 opening four traditional Benihana
teppanyaki restaurants, in Santa Monica, CA, Westbury, NY, Las
Colinas, TX, and Wheeling, IL, a suburb of Chicago.
      Customer counts last year increased 13.8%, to 6.8 million guests.
Same store sales for the fourth quarter increased 7.5% and for the
year rose 10.3% over a year ago, continuing a trend at Benihana that
is well ahead of the industry average for both periods. Earnings
before interest, taxes, depreciation and amortization (EBITDA) for the
year rose to $20.5 million, from $19.1 million a year ago, and for the
fourth quarter amounted to $6.3 million, compared to $5.6 million last
year.
      Total restaurant opening costs for fiscal 2001 amounted to
approximately $1.5 million, equal to approximately $0.14 per diluted
share after tax, compared with $566,000, equal to $0.06 per diluted
share after tax, in the corresponding year earlier period. In the
fourth quarter, these costs totaled $275,000, or $0.03 per diluted
share after tax, compared with $381,000, or $0.04 per diluted share
after tax, in the prior year fourth quarter. Fiscal 2001 results also
reflected operating losses of approximately $893,000 related to the
two new Sushi Doraku restaurants, a relatively new restaurant concept,
which are in the early start-up phase. No new Sushi Doraku restaurants
are currently planned.
      Mr. Schwartz said that in addition to the new restaurants which
are expected to open in fiscal 2002, several other stores in promising
locations are also under consideration. "While we are very much
focused on expanding, we plan to do so in line with our time-honored
tradition of doing so in a disciplined, profitable manner," said Mr.
Schwartz.
      Benihana currently operates 57 restaurant units: 51 teppanyaki
style restaurants, three Sushi Doraku by Benihana restaurants and
three Haru sushi restaurants. The Company licenses 16 other teppanyaki
restaurants.

      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.

  -0-
  *T

                             Benihana Inc.
                 Consolidated Statements of Operations

             (In thousands, except per share information)

                        Three Periods Ended          Year Ended
                        1-Apr-01   26-Mar-00   1-Apr-01    26-Mar-00

Restaurant Sales          41,848     35,435     161,865    136,389
Franchise fees and
 licensing                   368        239       1,378      1,088
Total revenues            42,216     35,674     163,243    137,477
Gross profit              31,076     26,059     118,564     99,801
Restaurant operating
  profit                   7,979      7,401      29,137     25,713
Restaurant opening
 expenses                    275        381       1,453        566
Interest expense             272        377       1,233      1,297
Minority interest            (59)        63          40         81
Income before taxes        4,752      4,164      14,099     13,455
Net income                 2,878      2,699       9,091      8,733

Per share
Basic earnings              0.46       0.43        1.47       1.41
Diluted earnings            0.45       0.40        1.38       1.32

Average shares
 outstanding           6,442,000  6,698,000   6,611,000  6,636,000

Other Data:
EBITDA                     6,300      5,560      20,511     19,101
Restaurants Open              56         53          56         53
Restaurants under
 development                   7          7           7          7

 *T

    --30--ck/ny*

    CONTACT: Benihana Inc.
             Joel A. Schwartz / Michael R. Burris, 305/593-0770
                    or
             Corporate Relations:
             Anreder Hirschhorn Silver and Company
             Steven Anreder, 212/532-3232

    KEYWORD: FLORIDA
    INDUSTRY KEYWORD: RESTAURANTS EARNINGS