Champps Entertainment, Inc. Reports Fiscal 2002 First-Quarter Results.

Business Editors

ENGLEWOOD, Colo.--(BUSINESS WIRE)--Oct. 23, 2001

Champps Entertainment, Inc. (Nasdaq:CMPP) today announced results for the first quarter of fiscal 2002 ended September 30, 2001.

Revenues for the quarter were $34,825,000, compared with $33,083,000 reported in the first quarter of fiscal 2001. Earnings per diluted share were $0.04 for the first quarter of fiscal 2002 on net income of $476,000 versus net income of $1,698,000, or $0.14 per diluted share for the same period last year.

Income from operations for the quarter was $957,000, compared with $2,100,000 for the first quarter of last year. Preopening expenses relating to the opening of four new restaurants in October and November were $687,000, or $0.05 per diluted share, compared to $243,000, or $0.02 per diluted share last year. Comparable same store sales decreased 3.7 percent for the quarter, versus an increase of 2.2 percent for the first quarter of last year.

William H. Baumhauer, Champps' chairman, president and chief executive officer, commented: "In light of the terrible tragedies that occurred on September 11, 2001, which have impacted all of us, we at Champps, like the rest of the nation, face a period of uncertainty and challenge. All of us at Champps extend our thoughts and prayers to the thousands of victims, their families and friends who have suffered during this trying time."

"The attacks, coupled with the weakened U.S. economy, affected our first-quarter results. Revenues generated in the first quarter were more than $2,500,000 below plan, resulting in earnings for the quarter to be below expectations. However, based on the improved performance we have experienced during the first three weeks of October 2001, we anticipate revenues to reach approximately $40,000,000 for the second quarter and earnings to range between $0.07 and $0.09 per diluted share," Baumhauer added.

"Our aggressive growth plan to take our concept into both new and existing markets continues. During October, we opened two new Champps restaurants: one in Pentagon City, Va., and the other in Utica, Mich. We expect to open Champps restaurants in Colombia, Md., and Indianapolis, Ind., in November, and two to four new restaurants during the fourth quarter of this fiscal year. Our strategic growth plans are on target as we remain confident about the long-term prospects for the company," Baumhauer concluded.

Englewood, Colo.-based Champps Entertainment, Inc. currently owns and operates 30 and franchises 13 Champps Americana restaurants in 17 states. Champps, which competes in the upscale casual dining segment, offers an extensive menu consisting of freshly prepared food, coupled with exceptional service. Champps offers an exciting environment through the use of videos, music, sports and promotions.

Champps Entertainment management will host an investment community conference call on October 24, 2001, 10:00 a.m. EST, to discuss first- quarter fiscal 2002 results. To hear the call in a listen-only mode, participants must dial 800/553-2173 and refer to reservation No. 1290888, five minutes prior to the start of the call, or visit the company's web site at www.champps.com and click on the investor relations icon to hear a live web simulcast and replay of the call.

Statements made in this press release include forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Information on significant potential risks and uncertainties that may cause such differences include, but are not limited to, those mentioned by the Company from time to time in its filings with the Securities and Exchange Commission. The words "believe," "estimate," "expect," "intend," "anticipate," "should" and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and, therefore, readers should not place undue reliance on these forward-looking statements.

CHAMPPS ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
 (Dollars in thousands, except per share data)

                                      Three Months Ended
                                      ------------------
                                  September 30,     October 1,
                                     2001             2000
                                     ----             ----
Revenues:
  Sales                           $  34,670        $  32,910
  Franchising and royalty, net          155              173
                                     ------           ------
  Total revenues                  $  34,825        $  33,083
                                     ------           ------

Costs and expenses:
Restaurant operating expenses:
  Product costs                       9,999            9,521
  Labor costs                        11,348           10,633
  Other operating expenses            5,562            4,802
  Occupancy                           2,861            2,637
  Depreciation and amortization       1,489            1,388
                                     ------           ------
    Total restaurant operating
     expenses                        31,259           28,981
Restaurant and franchise operating
 contribution                         3,566            4,102
Preopening expenses                     687              243
General and administrative expenses   1,922            1,759
                                     ------           ------
Income (loss) from operations           957            2,100
Other expense, net                      441              312
                                     ------           ------
  Net income (loss) before taxes        516            1,788
Provision for income taxes               40               90
                                     ------           ------
  Net income (loss) after taxes   $     476        $   1,698
                                     ======           ======

Basic income (loss) per share:    $    0.04        $    0.15
                                     ======           ======

Diluted income (loss) per share:  $    0.04        $    0.14
                                     ======           ======

Basic weighted average shares
 outstanding                         12,049           11,681

Diluted weighted average shares
 outstanding                         12,730           11,981


Selected Consolidated Balance Sheet
 Information                      September 30,     July 1,
                                     2001             2001
                                     ----             ----
Cash and marketable securities    $   1,075        $   1,261
Total assets                         81,454           79,458
Debt                                 14,981           15,062
Capital lease obligations             3,234            2,031
Stockholders' equity                 45,480           44,616


Supplemental Information -- Operating Expenses
 (Stated as a percentage of sales)

  Product costs                        28.8%            28.9%
  Labor costs                          32.7%            32.3%
  Other operating costs                16.1%            14.6%
  Occupancy                             8.3%             8.0%
  Depreciation and amortization         4.3%             4.3%
                                     ------           ------
    Total restaurant operating
     contribution margin                9.8%            11.9%
                                     ------           ------
  Preopening expenses                   2.0%             0.7%
    General and administrative expenses 5.5%             5.3%
                                     ------           ------
     (Stated as a percentage of revenues)