Boston Chicken completes development review.

GOLDEN, Colo.--(BUSINESS WIRE)--June 25, 1997--Boston Chicken Inc. (NASDAQ/NMS:BOST) said today that the company and its area developers have completed their review of store development plans and expect to open a total of 150 to 200 new Boston Market(R) stores during 1997 and a total of 150 to 250 new stores during 1998.

The decision follows an announcement earlier this month in which the company stated it would review the pace of new store development in light of current Boston Market store performance. The company's original objective was to open approximately 300 stores per year. The company said fewer than anticipated store openings will negatively impact earnings expectations for 1997 and 1998.

"Given our competitive lead, our first priority is not how many stores the system builds, but making the existing asset base as productive as possible," said Scott Beck, chairman and CEO of Boston Chicken. "This temporary slow down in development will allow our area developers to better focus on achieving maximum productivity from the existing stores and on ensuring a great customer experience."

"We are aggressively transitioning our marketing strategy to refocus on our core brand attributes by reemphasizing quality, convenience and value at dinner and reining in couponing and media spending," said Mark Stephens, vice-chairman and chief financial officer of Boston Chicken.

"During this transition period, we expect store performance to be choppy and are indeed seeing sales weakness this quarter. Although we've gotten a little off track, our long-term strategy is right on target. We are confident in the unique positioning of our brand, our category leadership in home meal replacement and our ability to capitalize on the way consumers are buying food today."

Stephens added, "With Boston Market clearly a well established national brand, the intermediate to long-term benefits of a strong performing store base far outweigh a temporary slow down in development."

Boston Chicken, Inc. franchises and operates retail food service stores under the Boston Market brand name that specialize in fresh, convenient meal solutions, featuring homestyle entrees, fresh vegetables, sandwiches, salads and side dishes. Boston Market combines the freshness and quality of traditional home cooking with convenience and value. On April 20, 1997, the end of the company's first quarter, there were 1,159 Boston Market stores in 38 states and the District of Columbia. Boston Chicken also owns a majority interest in Einstein/Noah Bagel Corp.

Certain statements in this release constitute "forward-looking statements" and involve risks, uncertainties and other factors which may cause actual results and the performance of Boston Chicken, Inc., its area developers and franchisees, and its and their Boston Market stores to be materially different from the results, performance or achievements expressed or implied by such statements. Such factors include, among others: availability and cost of capital to the restaurant industry in general and the company and its area developers in particular; success of operating initiatives; development and operating costs; area developers' adherence to development schedules; advertising and promotional efforts; store performance; adverse publicity; changes in business strategy, including the possible integration of fresh, ready-to-heat prepared foods in the Boston Market concept; changes in development plans; availability, locations, and terms of sites for store development; and other factors set forth in the company's filings with the Securities and Exchange Commission.

CONTACT: Boston Chicken

Karen Rugen, 303/216-5076 (Media Contact)

Melissa Marsden, 303/216-5652 (Analyst Contact)