Cucos announces fourth quarter earnings.

NEW ORLEANS--(BUSINESS WIRE)--Aug. 27, 1996--Cucos Inc. (NASDAQ:CUCO) announced today that the Company recorded a small profit for the fourth quarter and year-end June 30, 1996.

For the fourth quarter the Company achieved a profit of $2,048 on revenues of $5,432,003 which compares to a loss of $398,247 on revenues of $4,797,923 in the comparable quarter of fiscal 1995. This brings the total net income for fiscal 1996 to $14,950 ($.01 per share) on revenues of $21,546,002 compared to net loss of $1,518,328 ($.72 per share) on revenues of $19,541,109 recorded in fiscal 1995.

Vincent Liuzza, Chairman of the Company, stated, "Cucos turnaround strategy centered on making Cucos more competitive in the market-place by:

-- Accelerating the Company's remodeling program.

-- Reducing selected menu prices.

-- Intensifying advertising, including development of the

Company's first television campaign."

These actions resulted in a 9.0% increase in comparable sales per restaurant for fiscal 1996 and a return to profitability. "We were also successful in subleasing the four closed restaurants which reduced earnings for part of the year," stated Liuzza. Liuzza also announced that one company-owned restaurant was franchised subsequent to year-end and that a second new franchised restaurant is under construction. "We also hope to open at least one additional company-owned restaurant during the second half of the year," noted Liuzza.

Cucos is a Mexican restaurant chain consisting of fifteen company-owned restaurants and six franchised restaurants located in the Southeastern United States. -0-

                              Cucos Inc.
                       Statement of Operations
                              Unaudited

                            12 Weeks   12 Weeks    52 Weeks    52 Weeks
                             Ended      Ended       Ended       Ended
                            6/30/96     7/2/95     6/30/96      7/2/95
Revenues:
 Sales of food
  and beverages           $5,304,094 $4,713,056 $21,052,194 $18,812,719
 Franchise fees
  and royalties               35,647     40,887     161,777     354,719
 Commissary, rent and
  other income                92,262     43,980     332,031     373,671
 Total revenues            5,432,003  4,797,923  21,546,002  19,541,109

Cost and expenses:
 Cost of sales             1,442,045  1,259,698   5,658,370   4,900,784
 Restaurant labor and
  benefits                 1,756,864  1,546,146   6,991,336   6,344,056
 Other operating expenses    889,307    872,093   3,369,466   3,054,604
 Occupancy costs             533,275    513,861   2,148,059   2,173,439
 Preopening costs             28,959          0      28,959           0
 Total restaurant expenses 4,650,450  4,191,798  18,196,190  16,472,883

 Operations and franchise
  expenses                   300,216    442,483   1,436,308   2,323,976
 Corporate expenses          376,507    457,656   1,483,754   1,800,396
 Interest expense            102,782    103,700     414,800     416,092

Income (loss) before income
 taxes and cumulative effect
 of accounting change          2,048   (397,714)     14,950  (1,472,238)

Income taxes                       0        533           0      46,090

Net income (loss)              2,048   (398,247)     14,950  (1,518,328)

Weighted shares
 outstanding               2,601,116  2,113,747    2,601,116  2,113,747

Income (loss) per share        ($.--)     ($.19)        $.01      ($.72)

CONTACT: Cucos Inc.

Thomas J. Sandeman, 504/835-0306