Cara Operations Ltd. announces successful closing of its transaction with The Spectra Group of Great Restaurants Inc.

TORONTO--(BUSINESS WIRE)--April 22, 1997--Cara Operations Ltd. (TSE, ME: CAO.) (TSE, ME: CAO.A.) (OTC Bulletin Board: CRAOF.) announced Tuesday the successful closing of its transaction to acquire up to 35 percent of the issued and outstanding shares of The Spectra Group of Great Restaurants Inc.

Under the transaction, Cara acquired today from Spectra treasury, 506,970 common shares and 1,939,090 non-voting shares at a price of $2.25 per share, representing about 21.5 percent of the issued common shares and 22.5 percent of the issued non-voting shares, respectively.

Cara also acquired warrants exercisable within one year at a price of $2.55 per share, which if fully exercised, would give Cara 35 percent of each class of shares (on a fully diluted basis).

Gabe Tsampalieros, president and chief operating officer of Cara reported, "We're really delighted to have formalized our alliance with the Spectra Group through this strategic investment.

"Since we first entered into the Acquisition Agreement with Spectra in early March, we have had a number of discussions and meetings amongst members of operating management for Cara, Spectra and our other strategic partner, The Second Cup, and we are extremely confident the strengths of our respective brands and operating capabilities will be significantly leveraged through this broader cooperation."

Cara Operations Ltd. is traded on the Toronto and Montreal Stock Exchange (CAO/CAO.A). Cara's core businesses are the Swiss Chalet chain of more than 140 family-style restaurants featuring rotisserie chicken and barbecued ribs; the Harvey's chain of more tban 300 quick-service restaurants featuring charbroiled hamburgers; the Airport Services Division which provides catering and ancillary services to more than 50 airlines from 11 flight kitchens across Canada, as well as operating restaurants, gift stores and newsstands at major Canadian airports and transportation terminals; Beaver Foods Ltd., the largest Canadian-owned contract caterer, operating food service facilities at over 1,000 corporate, government, educational and health care facilities, and resource camps and events across Canada; and Summit Food Service Distributors Inc., a full-line foodservice wholesale distribution company operating primarily in Ontario and Quebec. In addition, Cara is the largest shareholder of The Second Cup Ltd., Canada's leader in the specialty coffee retail market.

CONTACT: Cara Operations Ltd.

Gabe Tsampalieros, 416/969-2534 or

Ian Wilkie, 416/969-2533