Chart House Enterprises Announces New Developments in Revitalization Strategy.

Business Editors

CHICAGO--(BUSINESS WIRE)---Jan. 10, 2000

New Chart House and Angelo & Maxie's units planned for 2000;

Company to close 11 lower-volume Chart House restaurants

Chart House Enterprises, Inc. (NYSE-CHT), parent company of Chart House Restaurants, will expand the Angelo & Maxie's Steakhouse brand and open new Chart House restaurants as part of its system-wide growth plan. As part of its plan to focus corporate resources on new unit expansion and better-performing existing units, Chart House management will close eleven lower-volume Chart House restaurants.

In 1998, new management began the turnaround of the flagship Chart House concept through a remodeling program, improved unit management systems and training, and a creative new menu emphasizing fresh seafood. Management's goal was to reverse years of poor unit operating performance. Based on strong same store sales growth and profitability at continuing Chart House units during 1999, management believes the turnaround is well underway. In 2000, the company will open at least two new Chart House locations featuring new menus and new decor packages unique to the local area. The first new Chart House for the year 2000 is expected to open in June and will be in Weehawken, NJ. Well-known Chicago restaurateur Rich Melman and Lettuce Entertain You Enterprises, Inc., will continue in 2000 as creative consultants assisting Chart House in the development of the new Chart House restaurants' decor and ongoing menu refinement.

The imaginative new menu, with an emphasis on fresh seafood has been introduced to all Chart House restaurants and has been well-received by customers. In addition to introducing a new menu, Chart House has remodeled approximately half of its restaurants, while retaining each restaurant's local flavor. The remodeling program will be completed system-wide during 2000.

Also this year, the company will expand its popular New York steakhouse, Angelo & Maxie's, into at least five new locations, including a second location in Manhattan and new units in Atlanta, GA and Washington, DC where leases have already been executed. The Angelo & Maxie's concept was acquired in April 1999, to provide a complementary growth vehicle to the flagship Chart House brand. Angelo & Maxie's has a sophisticated, high-energy setting and an average guest check of $35-$40 per person that appeals to a broader demographic group in gender and household income than traditional steakhouse concepts.

As a result of management's decision to focus on unit expansion and better-performing Chart House locations, 11 Chart House restaurants will close in the next 60 days. A one-time, mostly non-cash charge to earnings of approximately $5 million in fiscal year 1999 will cover the costs associated with the restaurant closings. The closing locations include all four Hawaii locations; Newport, RI; Hilton Head, SC; Vail, CO; Chester, CT; New Haven, CT; Greenwich, CT; and Atlanta, GA. Severance packages are being provided to affected employees. Following these closures announced today, the company will operate a total of 39 Chart House restaurants.

Chart House Enterprises' President and Chief Executive Officer, Tom Walters, commented, "By eliminating these under-performing Chart House units we can focus our efforts and resources on the remaining restaurants which are producing attractive unit economics and on new units for both the Chart House and Angelo & Maxie's concepts. In addition, by completing the Chart House remodel program and focusing on further developing the new menu, we can produce better results for shareholders." Mr. Walters added, "The Chart House brand has stood the test of time. We feel strongly that Chart House will flourish in markets with appropriate demographics. Our same store sales performance and unit profitability in 1999 gives us confidence that the turnaround of Chart House is clearly underway and that a solid foundation for growth exists."

Headquartered in Chicago, Chart House Enterprises, Inc. (NYSE-CHT) currently operates more than 50 restaurants in the continental United States, and Hawaii. Restaurants include the California-inspired Chart House Restaurants, known for great seafood, spectacular locations and breathtaking views; the South Pacific-themed Peohe's restaurant in Coronado, California; and Angelo & Maxie's, a popular New York steakhouse located in the heart of Manhattan.