Boston Restaurant Associates Announces FY 2001 Results- a 35% Increase in Revenue, a 23% Increase in Store Level Cash Flow, Net Loss Due to Non-recurring Factors.

Business Editors

BOSTON--(BUSINESS WIRE)--Aug. 2, 2001

Boston Restaurant Associates, Inc. (OTC: BRAI)--George R. Chapdelaine President and CEO announced that Boston Restaurant Associates, Inc. continued to grow in fiscal 2001, (ended April 29th), in revenues and operating cash flow. Revenues increased 35% to $21.7 million. Operational cash flow increased 23% to $4.0 million. After corporate overhead ($1.84 million vs. $1.72 million a year earlier), depreciation and amortization ($1.2 million vs. $0.8 million), pre-opening expenses ($685,000 vs. $453,000), litigation and asset impairment costs ($2.4 million vs. zero a year earlier), and interest expense ($456,000 vs. $327,000), net income amounted to a negative $2,510,034 versus a profit of $65,534 a year earlier.

Mr. Chapdelaine emphasized that the charges against the income statement were one time in nature, and the Company is well positioned for the future. He said "Our Company had a very successful year on balance. Our Pizzeria Regina locations posted a same store sales increase of 4.9% and our original Polcari's location posted another double digit increase of 10.8%. Our three newest Polcari's locations are averaging $2.5 million. Candidly, the arbitration and its ultimate resolution, required substantial management attention during the course of the year, but the satisfactory result allows us to expand our Polcari's chain unhindered by operational restrictions.

Mr. Chapdelaine continued, "I want to thank our employees for their dedication that produced solid "operating" returns. In terms of building long term value, the year was productive in terms of developing both of our "brands". Our stores generated [pilcrow (paragraph sign)] $4 million in cash flow before corporate overhead and pre-opening expenses. We clearly have two productive brands, and we expect the future net income to better reflect the long term potential for growth within our Company.

Statements about the company's future expectations, including future expansions, franchising, revenue and earnings, and all other statements in the press release other than historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. Since these statements involve risks and uncertainties and are subject to change at any time the Company's actual results could differ materially from expected results.