Boston Restaurant Associates Announces Year End Results, a 31% Increase in Revenues to $15.9 Million, an 81% Increase in Operating Cash Flow to $1.5 Million.

Business Editors

BOSTON--(BUSINESS WIRE)--July 31, 2000

Boston Restaurant Associates, Inc. (NASDAQ:BRAI)(BSE:BNR)

Boston Restaurant Associates, Inc. announced its results for the fiscal year ending 4/30/00. Revenues increased 31% to $15,960,743. Store level cash flow, before pre-opening expenses and corporate administrative expenses increased 30% to $3,258,079. Operating Cash Flow, after administrative expenses, but before pre-opening expenses, increased 81% to $1,539,008. Net income, reduced by pre-opening expenses of $453,002 (vs. $42,197 a year earlier) and interest expenses of $327,164 (vs. $241,973 a year earlier) and a minority interest loss in a subsidiary of $65,543 (vs. $34,133 a year earlier) was $65,534 vs net income of $59,636 a year earlier.

According to George Chapdelaine, President and CEO, "We consider the most recent fiscal year to have been a "watershed" for BRAI. In twelve short months, we opened three additional food court locations for our seventy-six year old Pizzeria Regina brand, in Kingston, MA, Holyoke, MA and Providence, RI. While the results shown above demonstrate our financial progress, it is important to note that the four successful new locations did not contribute a full year operating results, so we expect future results to benefit even more substantially from these units. Since accounting standards require pre-opening expenses to be written off as incurred, we believe investors should judge our corporate progress on a broader basis than "net income" alone.

We feel that both of our concepts are among the most exciting within the restaurant industry, in terms of customer satisfaction, combined with a high return on investment for our Company. We are intent on operating company units close to our Boston base, and plan to franchise to experienced, well capitalized operators in other parts of the U.S. as well as internationally."

Chapdelaine continued, "I can't say enough about the dedication of our operating team. Our greatest corporate strength is the group of operating managers and supervisors that have produced outstanding unit level results for many years. With our expansion now well underway, the service and profitability standards they have established should provide all shareholders with steadily increasing value over the long term."

BOSTON RESTAURANT ASSOCIATES, INC. owns 13 Pizzeria Reginas and two Polcari's. In addition, the Company also franchises both Pizzeria Regina and Polcari's.

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.