Bondholders Unofficial Committee Delivers Letter to Advantica.

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 28, 2002

The Unofficial Committee of holders of 11 1/4% Senior Notes due 2008 of Advantica Restaurant Group, Inc. (OTCBB:DINE), formed to oppose Advantica's proposed exchange offer for the Notes, informed the Company that Note holders holding approximately $400 million principal amount of Notes were opposed to the proposed exchange offer.

As described in a registration statement filed by Advantica with the SEC on December 28, 2001, Advantica has offered to exchange up to $204,050,000 12 3/4% Senior Notes due 2007 issued by it and its Denny's Holdings, Inc. subsidiary for up to $265,000,000 of the outstanding 11 1/4% Senior Notes due 2008 issued by Advantica.

In a second letter to Advantica, the Committee indicated again that while its members are not opposed to a deleveraging transaction of some type, the elimination of $60 million in principal proposed by Advantica is not appropriate or fair to bondholders. The Committee has offered to negotiate a more balanced and comprehensive approach to deleveraging. Notes holders can contact either of the following two Committee members, Robert Davenport at Cerberus Capital [phone] or Eric Johnson at Conseco Capital Management [phone], for further information.