Benihana signs contracts for two grills in Texas, franchise restaurant in Reno Hilton.

MIAMI--(BUSINESS WIRE)--May 28, 1996--Benihana Inc. (NASDAQ, NM: BNHN, BNHNA), today announced it has signed leases for two Benihana Grills in affluent suburban areas of Dallas and Houston and has completed a franchise agreement for a 3,600 square-foot Benihana restaurant in the Flamingo Hilton Hotel, Reno, Nev.

The company has signed leases for a 4,000 square-foot Benihana Grill in the Turtle Creek Shopping Center, Dallas, which is scheduled to open in late 1996, and a 3,800 square-foot Grill will open in a 9,700-acre mixed use planned community in Sugarland, Texas, southwest of Houston in early 1997.

The Flamingo Hilton, Reno franchise restaurant is now under construction and is expected to open in June 1996. The company has a popular franchised restaurant in the Las Vegas Hilton and a 200-seat franchise restaurant is scheduled to open in the Riverfront Hilton, Little Rock, Ark., this summer.

"The pace of our expansion is accelerating, fueled by the appeal of the new Grills, which allow penetration of moderate size markets at about one-third the $1.8 million cost of a traditional Benihana restaurant," Joel Schwartz, president, said. "In addition, franchisees are attracted to our track record of steady growth in profitability, same store sales and rising customer counts, contrary to recent industry trends," he added.

Benihana currently owns or licenses 46 teppanyaki-style Japanese restaurants in the U.S.

The company's Class A common stock is the same as the common in all respects except that the Class A has 1/10 the vote of the Common. In addition, the Class A shareholders vote separately as a class to elect 25 percent of the members of the board.

CONTACT: Benihana Inc.

Joel Schwartz, Michael Burris, 305/593-0770

or

Porter LeVay & Rose Inc.

Hal Le Vay, 212/564-4700