DENWEST RESTAURANT CORP. ADDS 25 RESTAURANTS; Acquisition increases Denwest's restaurant holdings by 36.6%.

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--September 7, 1995--Denwest Restaurant Corp., the nation's second largest Denny's franchisee, announced today that it has acquired a lease hold interest in 25 Kettle restaurants from Kettle Restaurants, Inc. The restaurants are located in Texas, Oklahoma, Colorado, Alabama, South Carolina, Virginia, North Carolina, Florida and Georgia.

Last month, Denwest and American Family Restaurants, Inc. (AFR) (AMEX: FRI) signed an Agreement and Plan of Merger providing for the combination of the companies, the nation's two largest Denny's franchisees. After the merger, AFR will change its name to DenAmerica Corp. and relocate its executive offices to Denwest's Scottsdale, Arizona headquarters.

William J. Howard, President of Denwest Restaurant Corp. commented on the acquisition, "The Kettle restaurants provide us with a stronger presence in some very desirable locations in Texas, expand us into Oklahoma and fill in some gaps in DenAmerica's southeast base. The additions increase Denwest's and DenAmerica's restaurant base by approximately 36.6% and 12.5%, respectively. The acquisition reflects DenAmerica's long- term strategy of strengthening our position in our existing areas of operations, thus generating greater economies of scale and a more efficient overall operation."

Including today's purchase, DenAmerica will initially operate 237 restaurants in 28 states in the West, Midwest and Southeast, including 156 Denny's restaurants or about ten percent of all domestic Denny's restaurants.

Denwest Restaurant Corp., headquartered in Scottsdale, Arizona, operates 75 Denny's restaurants in 13 states in the West and Midwest and has several more under development.

CONTACT: William J. Howard

President

Denwest Restaurant Corp.

602/483-7055

or

Joseph N. Jaffoni

David C. Collins

Jaffoni & Collins Incorporated

212/505-3015