Buffets Holdings, Inc. Announces Results for the First Quarter of Fiscal 2007.

EAGAN, Minn. -- Buffets Holdings, Inc.:

HIGHLIGHTS:

* Total revenues down 2.4% in the first quarter;

* Same store sales down 0.4% for the quarter;

* Previously announced Merger with Ryan's Restaurant Group closed on November 1, 2006

Buffets Holdings, Inc. ("Buffets Holdings"), the parent company of Buffets, Inc. ("Buffets"), today reported operating results for its 12-week, first quarter ended September 20, 2006.

Buffets Holdings reported a 2.4% decrease in total sales for the first quarter ended September 20, 2006, as sales decreased to $221.3 million compared to $226.7 million for the comparable prior year period. Average weekly sales for the first quarter of fiscal 2007 increased 2.1% over the comparable prior year period to $54,596. The improvement in average weekly sales reflects positive guest response to the introduction of display grills in 20 restaurants, and the closure of 22 low sales volume restaurants over the past year. Same-store sales for the first quarter of fiscal 2007 decreased by 0.4% as compared to those reported for the prior year period. This decrease was primarily attributable to a 3.0% increase in average check, offset by a 3.4% decline in guest traffic.

Net loss for the first quarter of fiscal 2007 was $1.1 million, as compared to a net income of $3.1 million for the first quarter of fiscal 2006. The decrease in net income was primarily attributable to lower total sales in the first quarter of fiscal 2007 compared with the comparable prior year period, resulting from the closure of 22 underperforming restaurants over the past year, higher interest expense related to rising interest rates on our term loans, the impact of higher accretion of non-cash interest expense on our 137/8% senior discount notes, and merger integration costs related to the merger with Ryan's Restaurant Group.

Merger with Ryan's Restaurant Group Completed

Buffets Holdings' previously announced merger with Ryan's Restaurant Group was completed on November 1, 2006. The combined company, called Buffets, Inc. and headquartered in Eagan, Minnesota, is the nation's largest buffet restaurant chain and one of the five largest companies in the casual and mid-scale dining segment. It has annual revenues greater than $1.7 billion, and operates 672 restaurants in 39 states, principally under the well-respected Ryan's([R]), Fire Mountain([R]), Old Country Buffet([R]) and HomeTown Buffet([R]) brands. Ryan's operates as a separate division of Buffets and continues to be based in Greer, South Carolina.

Continued Focus on Key Initiatives

Old Country Buffet([R]) and HomeTown Buffet([R]) now serve steak in every restaurant six or seven days a week and have received favorable guest response to their fall "Steakhouse Classics" promotion and related advertising campaign, which was launched in late September. We have continued the testing and installation of our display grill cooking stations and now have twenty units with this retrofit. In addition, Fire Mountain([R]), acquired in the merger with Ryan's Restaurant Group, has over 200 display grills in operation.

Buffets Holdings will be conducting a conference call to discuss operating results for the quarter ended September 20, 2006, on Monday, November 6, 2006 at 11:00 a.m. (Eastern). You may dial into this call starting at 10:45 a.m. (Eastern). The conference phone number is [phone] and the conference ID number is 9706043. Chief Executive Officer Mike Andrews and Chief Financial Officer Keith Wall will host the call. In consideration of your fellow participants, the Company requests that cellular phones not be used. The conference call will be recorded and available for playback through Friday, November 17, 2006 at 6:00 p.m. (Eastern). Playback can be accessed by dialing [phone] and requesting conference ID number 9706043. Information regarding non-GAAP financial measures discussed in the conference call can be found at www.buffet.com on the financial information page.

About Buffet Holdings

Buffets, Inc. currently operates 672 restaurants in 39 states comprised of 663 buffet restaurants and nine Tahoe Joe's Famous Steakhouse([R]) restaurants. The buffet restaurants are principally operated under the Old Country Buffet([R]), HomeTown Buffet([R]), Ryan's([R]) and Fire Mountain([R]) brands. Buffets also franchises 18 buffet restaurants in seven states. Buffets, Inc. employs approximately 43,000 team members and serves more than 220 million customers annually.

Safe Harbor Statement

The statements contained in this release that are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in, or implied by, the forward looking statements. The risks and uncertainties involving forward-looking statements include, but are not limited to, general and economic conditions, negative publicity, the impact of competition, the ability to integrate the restaurants acquired in the Ryan's acquisition, the ability to realize the benefits and synergies of the Ryan's acquisition, the seasonality of Buffets Holdings' business, adverse weather conditions, future commodity prices, fuel and utility costs, labor costs, employment and environmental laws, public health developments including avian flu, government regulations, and inflation. For a detailed discussion of risks and uncertainties that you should consider, please refer to the "Risk Factors/Forward-Looking Statements" section contained in Buffets Holdings' Form 10-K which was filed with the Securities and Exchange Commission on September 20, 2006. The statements in this release reflect Buffets Holdings' current beliefs and are based upon information currently available to it. Be advised that developments subsequent to this release are likely to cause these statements to become outdated with the passage of time and no obligation is undertaken to provide updates with respect to the information.

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