Cara to Acquire Controlling Interest in the Milestone's Restaurant Business from the Spectra Group of Great Restaurants.

Business Editors

TORONTO--(BUSINESS WIRE)--April 8, 2002

Cara Operations Limited (TSE:CAO.) (TSE:CAO.A.) ("Cara") announced today that it, together with Wayne Holm ("Holm"), has entered into an Arrangement Agreement to acquire from The Spectra Group of Great Restaurants ("Spectra") (SPA, SPA.A) its Milestone's restaurant business in a cash and share transaction valued at $34.4 million, plus the assumption of related liabilities.

Under the offer Cara-Holm will surrender the 6.64 million shares of Spectra held by them for cancellation and make a cash payment of $15 million to Spectra. As a result, Cara and Holm will each cease to be shareholders of Spectra. Milestone's Restaurants Inc., the new company established to own and operate the Milestone's business, will be owned approximately 74% by Cara and 26% by Wayne Holm, who will also be its President.

Milestone's has grown from a single location on Vancouver's English Bay in 1989 to twenty restaurants including fifteen in British Columbia, four in the Toronto, Ontario area and one in Kirkland, Washington. Milestone's, with annualized system sales in excess of $70 million, is an upscale casual restaurant concept that serves high quality fresh foods with a strong emphasis on globally inspired flavours.

"We are excited by the opportunity to add Milestone's to Cara's already strong portfolio of leading restaurant brands. Milestone's is a very successful, rapidly growing restaurant chain with its focus on the upper end of the casual-style dining segment. It is a complementary fit with Cara's existing brand portfolio. Furthermore, by divesting our overall interest in Spectra, this transaction underscores Cara's stated commitment to continually sharpen its focus and to concentrate on the accelerated development of its core growth brands. I am extremely pleased that Wayne Holm, who has extensive restaurant industry experience in Canada and the United States, has agreed to become a significant investor in and the new President of Milestone's. Wayne's past experience with the brand and with Cara will be invaluable to ensuring the continued successful evolution of the Milestone's brand." commented Gabe Tsampalieros, Cara's President and Chief Executive Officer.

The completion of the transaction is subject to, among other things, the approval of regulatory authorities, as well as approval by Spectra's shareholders.

About Cara Operations Limited

With annual system sales in excess of $1.6 billion, Cara Operations Limited, based in Toronto, Ontario, Canada is one of Canada's leading integrated food service companies, providing employment for more than 31,500 Canadians in its owned and franchised operations. Cara's wholly owned businesses include Swiss Chalet, Harvey's, Cara Air Terminal Restaurant Division, Cara Airport Services Division; Summit Food Service Distributors Inc., and Second Cup. Cara has a 61% ownership of Kelsey's International Inc., a multi-brand operator, operating Kelsey's International Inc., a multi-brand operator, operating Kelsey's Neighbourhood Bar & Grill, Montana's Cookhouse Saloon, and as a franchisee, Outback Steakhouse Restaurants. Cara is also the largest shareholder (38%) of The Spectra Group of Great Restaurants (SPA, SPA.A) a western Canadian based multi-concept restaurant operator, whose popular owned brands include the up-scale casual chain of Milestones restaurants and the Bread Garden bakery/cafe concept.