Correction From Source: Richtree's 2nd Quarter Results Show Strong Recovery; This Replaces the Release Issued Earlier Today.

Business Editors

TORONTO--(BUSINESS WIRE)--April 2, 2002

This release corrects and replaces the release sent earlier today @

1638 ET. A correction has been made to the third paragraph.

Richtree Inc. (TSE : MOO.b) today released its second quarter operating results for the thirteen-week period and year-to-date ended January 27, 2002.

Despite the lingering effects of the events of last September 11, Richtree was able to post solid cash flow results, resulting primarily from the prompt reaction of management to the industry-wide sales decline, ensuring that cost containment measures were implemented immediately to preserve operating results.

In the quarter, earnings before interest, taxes, and depreciation (EBITDA) was $818,000 compared to $992,000 for the 2nd quarter last year. Income from restaurant operations was $1.2 million versus $1.5 million a year earlier, and corporate overhead amounted to $414,000 compared to $476,000 last year. Total revenue was $17.1 million, compared to $19.8 million last year. After recording amortization of $1.6 million and interest of $180,000, and after a restructuring credit of $383,000, the net loss was $575,000, or 4.5 cents per share compared to $882,000 or 7 cents per share last year.

In Richtree's Canadian operations, overall EBITDA performance in the second quarter was 8.6% ahead of last year. In the Canadian market concept locations, EBITDA was actually 13.5% better than the prior year. The Company's U.S. operations in Boston were, not surprisingly, the most adversely affected by the events of September 11th. And, they have also been enduring the effects of a major redevelopment of the Prudential Center by the landlord, which has limited the operations there for the past 31/2 years, virtually the entire time since opening. However, it is expected that the project will finally be completed by the end of April 2002, meaning that the 1.2 million square feet of new office tower, a high-end condominium complex and a newly expanded top quality shopping arcade will bring the Company's locations totally into the revamped complex.

On a year to date basis, EBITDA was $1.3 million on sales of $35.2 million, compared to $2.7 million on $41.4 million of sales in the same period last year. The sales decline occasioned by September 11th is the primary reason for the change, and the fact that, in the prior year, the Company operated 11 Take-me! Marche outlets with Loblaws until May 2001 when their operations were integrated into Loblaws' existing supermarkets with the Company continuing as a consultant for home meal replacement.

Richtree Day, the much-publicized program implemented for 22 consecutive Tuesdays to allow its employees to become shareholders was launched in February. The Company's management at all levels and over 80% of its staff have voluntarily signed up to contribute either their pay for extra hours worked or a portion of the net salary to a trust, the proceeds of which will be used to redeem the final $1 million of preferred shares that are obliged to be redeemed.

On November 30, 2001 the Company entered into a new banking agreement providing for five-year term and revolving operating facilities to replace the previous agreement, which expired on that date.

In November, Richtree commenced an action in the Supreme Court of the State of New York against Movenpick alleging that the master franchisor has acted unlawfully by breaching the covenant of good faith and fair dealing and has conducted tortious interference with economic advantage. The claim seeks actual and compensatory damages U.S.$173 million and punitive damages believed to be not less than three times the amount of damages awarded.

Richtree operates its Marche operations in Toronto, Montreal and Boston and its Marchelino restaurants in Toronto, Ottawa, Montreal and Boston. The Company has four full-service traditional restaurants, and one Bistretto restaurant licensed to a resort hotel operator in Huntsville, Ontario. Richtree is listed on The Toronto Stock Exchange under the symbol MOO.b.