Chi-Chi's Rolls Out 'Street Teams' in VW Beetles.

RICHMOND, Va. and LOUISVILLE, Ky.--(BUSINESS WIRE)--Nov. 2, 1999--

Chancellor Marketing Group Creates Grassroots Effort

Chi-Chi's, Inc., a subsidiary of Prandium, Inc. (OTC BB:PDIM), announced today that, as "America's Favorite Mexican Restaurant," it has partnered with Chancellor Marketing Group (NYSE: AFM), a sales promotion firm owned by AMFM Inc., and launched the "Chi-Chi's Street Team" - an eye-catching, grassroots out-of-store promotion in its Philadelphia and Northern New Jersey markets.

The "Chi-Chi's Street Team" promotes the restaurant's Fiesta For Four carryout menu, the Five O'Clock Fiesta daily food and beverage specials and underscores elements of its new "Get Salsafied" advertising campaign.

Capturing instant attention, the promotion creates a buzz using colorful Volkswagen Beetles sporting a giant Chi-Chi's sombrero. The Year 2000 model VW Beetles are festooned with Chi-Chi's branding images that reinforce the "Get Salsafied" theme - that Chi-Chi's is the place where "fun, food and festivity abound." The VW Beetles cruise through office parks, shopping malls, train stations, colleges, and movie theater parking lots - anywhere Chi-Chi's target guests can be found in numbers.

"Our guests are entertainment-oriented. Chi-Chi's is taking its "Salsafication" message to the streets. Our restaurants' atmosphere reinforces the food, fun and festivity message," commented Laurie A. Katapski, senior vice president of marketing for Chi-Chi's, Inc.

The "Chi-Chi's Street Team" travels in the VW Beetles to high traffic locations in and around Chi-Chi's trading areas in the two markets. Team members hand out official entry forms to enter a contest to win the VW Beetles, encourage consumers to visit one of the 15 participating Chi-Chi's restaurants, and hand out information about Chi-Chi's promotional programs. "We are pleased to team with Chancellor Marketing Group on this promotional idea and believe that the buzz will translate into increased guest counts and higher sales in these markets," concluded Katapski.

Chi-Chi's is known for its famous Sizzling Fajitas and Sizzling Enchiladas, as well as the Outrageous Burrito and Chi-Chi's signature Mexican "Fried" Ice Cream(TM). The menu adds to the festive atmosphere as servers and guests alike celebrate the notion that "Life Always Needs a Little Salsa(TM)." In restaurants throughout 20 states, tens of thousands of people every day are "salsafied" as they enjoy the unique and fun-filled dining experience that has made Chi-Chi's "America's Favorite Mexican Restaurant Chain" for the past seven years.

The Chi-Chi's Mexican Restaurant concept began in Minnesota in 1976 and now operates over 150 restaurants in the Midwest and East. In the past three years, Chi-Chi's has remodeled 82 of its restaurants. Prandium, Inc. is known primarily for its Chi-Chi's, El Torito, Koo Koo Roo, Hamburger Hamlet, and Casa Gallardo restaurants. Through its various restaurant concepts, Prandium operates over 300 full-service or fast-casual restaurants in 27 states and also licenses its concepts outside the United States. Prandium is the largest operator of full-service Mexican restaurants in the world with sales of approximately $473 million and EBITDA of approximately $28 million in 1998. Prandium is located at 18831 Von Karman Avenue, Irvine, CA 92612. For information call [phone], or the toll free investor information line at (888) 288-PRAN, or visit the websites at http://www.prandium.com or htp://www.chi-chis.com. To order food via the Internet, use http://www.chichis.food.com .

"The Chi-Chi's Street Team" was concepted and executed by Chancellor Marketing Group, a full-service sales promotion firm. Chancellor Marketing Group is the nationwide sales promotion arm of AMFM Inc., the country's largest radio broadcaster.

Forward looking statements and comments in this press release are made pursuant to the safe harbor provisions of the Federal securities laws. Such statements relating to, among other things, the company's promotional plans, guest count potentials, operational objectives, operating results, consumer preferences, tastes and eating habits, demographic trends and traffic patterns, and competition from other restaurants and food service establishments are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These risks are further discussed in the periodic reports and registration statements filed by Prandium, Inc. from time to time with the Securities and Exchange Commission.

Note to editors: Color photos of the Chi-Chi's VW Beetle are available on Business Wire or by contacting Chancellor Marketing Group.

Chi-Chi's, Inc. is a registered trademark of its respective holder. Other brand or product names are registered trademarks or trademarks of their respective holders. (c) Prandium, Inc. 1999. All rights reserved.