Church's Chicken(R) Restaurants Open in Russian Markets.

Brand's Presence Extends to 19th Country

MOSCOW & ST. PETERSBURG -- Texas Chicken[R], the international brand of U.S.-based Church's Chicken[R] continues to expand its brand overseas, as European Active Corporation (EAC) has been awarded the rights to open 100 restaurants over the next seven years in Russia, Belarus and Ukraine. The company recently opened stores in the Moscow and St. Petersburg markets.

"We are committed to the expansion of Texas Chicken[R] in Russia and beyond," said Yuri Tetrov, President of EAC. "I'm very proud of my decision to get involved with a family-oriented brand that has a passion to serve the best fried chicken overseas."

On November 30, the first Texas Chicken[R] restaurant opened in Shelkovo, Russia. On December 2, the second restaurant opened in the Piter Raduga Shopping Mall in St. Petersburg, with plans for two more store openings by the end of the year in the Moscow and St. Petersburg markets.

"The key to long-term success in the restaurant industry is in international business," said Harsha V. Agadi, CEO of Church's Chicken. "Forecasted increases in commodities and rising labor costs in the US will have serious impact on operating margins domestically, so the challenge is to offset greater operational efficiency onshore while expanding overseas."

Although chicken is the primary meat consumed in Russia, adjustments were made to the menu to suit the local palate. For instance, seafood and ice cream are core menu items, the mashed potatoes are yellow in hue and the coleslaw is less sweet than the American version.

Texas-based Church's Chicken[R] began expanding internationally in 1979. Today, it is one of the largest quick-service chicken concepts in the world. While the Church's Chicken[R] logo has been trademarked in many countries, the company developed alternative branding under the name Texas Chicken[R] in select international markets to accommodate cultural sensitivities. Church's Chicken[R] will open 40 restaurants internationally this year.

ABOUT CHURCH'S

Founded in San Antonio, Texas, in 1952, Church's Chicken[R] is a highly recognized brand name in the QSR sector and is one of the largest quick-service chicken concepts in the world. Church's Chicken[R] serves freshly prepared, high quality, flavorful chicken and tenders with signature sides and hand-made from scratch biscuits at low prices and differentiates from its competitors in care and attention given in preparation of food, and is positioned as the Value Leader in the Chicken QSR category. As of February 2007, the Church's system had 1,600 locations worldwide in 18 countries, with system sales exceeding $1 billion.