Chicago Pizza & Brewery Inc. announces a 227 percent increase in revenues and substantial sales increase at its first restaurant conversion in the Pacific Northwest.

MISSION VIEJO, Calif.--(BUSINESS WIRE)--May 15, 1997--Chicago Pizza & Brewery Inc. (NASDAQ:CHGO and CHGOW) released results for its first quarter ended March 31, 1997.

Total revenues for the quarter were $5,783,000, an increase of 227 percent compared with the same period in 1996.

The increase in revenues was primarily due to the purchase of 19 stores in the Northwest in March 1996, opening of a "BJ's Pizza & Grill" in Westwood Village (Los Angeles), Calif., in March 1996, opening of a "BJ's Pizza, Grill & Brewery" in Brea, Calif., in April 1996, and the opening of a "BJ's Pizza, Grill & Brewery" in Boulder, Colo., in February 1997. In addition, revenues for the seven stores open the entire comparable periods increased by 3.3 percent.

The company's net loss for the quarter ended March 31, 1997, was $172,000 compared with a net loss of $367,000 for the comparable period in 1996. Cash flow from operations (operating loss plus depreciation and amortization) for the first quarter of 1997 was $101,000, an improvement from the first quarter, 1996 negative cash flow from operations, which was ($179,000).

"We are very pleased to have achieved a positive cash flow from operations during what is traditionally our slowest quarter," stated Paul Motenko, chief executive officer.

The company successfully converted the first of its 19 locations in Oregon and Washington, which were purchased from Pietro's Corp. in 1996. The restaurant, located in Eugene, Ore., was reopened on April 25, 1997, after a remodel and conversion to the BJ's Pizza & Grill concept.

Sales from the first two weeks subsequent to the conversion were triple the average sales achieved as a Pietro's restaurant. "While there are no assurances that this level of sales can be maintained," noted Jerry Hennessy, president, "we are certainly very gratified by the initial results."

Chicago Pizza & Brewery is an operator of 29 casual dining restaurants, some of which incorporate brewpubs. Eight of the restaurants are located in Southern California, one is located in Lahaina, Maui, and one is located in Boulder. In 1996, the company acquired 19 restaurants in Oregon and Washington from Pietro's. With the first conversion completed in April 1997, the remaining 18 restaurants, being operated as pizzerias under the Pietro's name, are awaiting conversion into brewpubs and casual dining restaurants to operate under the BJ's name.

The information presented herein contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, which are intended to be covered by the safe harbors created thereby. The company's results may differ significantly from the results indicated by such forward-looking statements.

Factors that might cause such differences include, but are not limited to: (i) the company's ability to manage growth and conversions, (ii) construction delays, (iii) restaurant and brewery industry competition and other such industry considerations, (iv) marketing and other limitations based on the company's historic concentration in Southern California and current concentration in the Northwest, (v) consumer trends, (vi) increased food costs and wages, including, without limitation, the recent increase in the minimum wage, and (vii) other general economic and regulatory conditions. -0-

Chicago Pizza & Brewery Inc.
Consolidated Financial Data
(In thousands, except per share data)

                                   For the quarter    For the quarter
                                        ended              ended
                                   March 31, 1996     March 31, 1997

Statement of Operations Data:

Revenues                                $ 1,768            $ 5,783

Gross profit                            $ 1,222            $ 4,075

Costs and expenses                      $ 1,511            $ 4,243

Other expenses                          $    61            $     7

Net loss                               ($   367)          ($   172)

Primary net loss per share             ($  0.10)          ($  0.03)

-0-

                                    Dec. 31, 1996      March 31, 1997

Balance Sheet Data (end of period):

Working capital                         $  3,329             $  2,458

Total assets                            $ 18,914             $ 18,613

Total long-term debt (including
 current portion)                       $  3,964             $  3,781

Shareholders' equity                    $ 12,123             $ 11,951

CONTACT: Chicago Pizza & Brewery Inc., Mission Viejo

Paul Motenko, CEO 

714/367-8616