Elephant & Castle revenues increase 4.4 percent after first nine months.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Nov. 14, 1995-- Elephant & Castle Group Inc. today announced results of its third quarter and first nine months ended Sept. 30, 1995. (All figures in Canadian Dollars)

Revenues for nine months ended Sept. 30, 1995, reflect a 4.4 percent increase to $18,893,608 from $18,106,128 as compared to a year ago. The company realized a net loss of $1,242,811 compared to a loss of $132,448 for the comparable period. A one time reserve of $900,000 is included in the loss for the nine month period due to anticipated, but not yet realized closing cost of three unprofitable operations. On a per share basis the company lost ($.50) per share including the reserve of ($.14) excluding the reserve vs ($.05) reported for the same period last year.

Revenues for the third quarter ended Sept. 30, 1995, decreased 5.9 percent to $6,276,521 from $6,668,801 for the comparable period a year ago. Net earnings for the period also decreased to $9,938 from $43,430 from a year ago, or $.004 vs $.02 per share. Most of the decrease in earnings is also the result of increased depreciation and amortization costs due to the amortization of pre-opening costs at new locations.

In line with the company's focus on opening larger more profitable Elephant & Castle operations with major hotel operators like Holiday Inn the company so far this year, has opened a new location in the Holiday Inn Select Center City in Philadelphia, Pennsylvania. The company also opened this year a new restaurant in the Rosedale on Robson Suite Hotel in Vancouver, B.C., and a new restaurant called the "Elephant on Campus" located on the campus of the British Columbia Institute of Technology in Burnaby, B.C. These new locations are expected to provide higher revenues along with lower occupancy and operating expense, and will begin to have a significant positive impact on the company's earnings after the first year of operation and after all pre-opening expenses are fully amortized.

The company is currently developing two new Holiday Inn locations in San Diego and San Francisco, California and plans on opening six locations next year. The company's board of directors has approved the terms of a proposed financing with a major investor that will meet, if completed, the cash requirements of these additional locations.

The Elephant & Castle Group Inc. owns and operates a chain of 16 full service British-style restaurants and pubs in Canada and the United States. -0-

ELEPHANT & CASTLE GROUP INC.
Financial Highlights   (unaudited)
(CDN $ - Canadian dollars)

                             Three months ended September 30
                                 1995             1994
                             ------------     ------------
Sales                         $6,276,521       $6,668,801
Income (Loss)
  - before reserve                 9,938           43,430
  - reserve for closing costs          0                0
Net Income (Loss)                  9,938           43,430
Per Share
  - before reserve                 $0.00            $0.02
  - reserve for closing costs      $0.00            $0.00
Net Income (Loss)
   per Share                       $0.00            $0.02
Total Assets                  11,496,250        9,459,618
Shareholders' Equity           6,108,346        7,145,192
Average Shares Outstanding     2,493,500        2,430,000

                             Nine months ended September 30
                                 1995             1994
                             ------------     ------------
Sales                        $18,893,608      $18,106,128
Income (Loss)
  - before reserve              (342,811)        (132,448)
  - reserve for closing costs   (900,000)               0
Net Income (Loss)             (1,242,811)        (132,448)
Per Share
  - before reserve                ($0.14)          ($0.05)
  - reserve for closing costs     ($0.36)           $0.00
Net Income (Loss)
   per Share                      ($0.50)          ($0.05)
Total Assets                  11,496,250        9,459,618
Shareholders' Equity           6,108,346        7,145,192
Average Shares Outstanding     2,493,500        2,430,000

CONVENIENCE TRANSLATION TO U.S. DOLLARS:  ELEPHANT & CASTLE
reports results in Canadian dollars (CDN $).  For 1995 the conversion
rate was $U.S. $1.00 - $CDN $1.37 ($U.S. $1.00 - $CDN $1.35 in 1994)
The following figures are convenience translations only.

(U.S.$ - U.S. dollars)

                           Three months ended September 30
                                 1995             1994
                             ------------     ------------
Sales                        $ 4,581,402      $ 4,939,853
Income (Loss)
  - before reserve                 7,254           32,170
  - reserve for closing costs          0                0
Net Income (Loss)                  7,254           32,170
Per Share
  - before reserve                 $0.00            $0.01
  - reserve for closing costs      $0.00            $0.00
Net Income (Loss)
   per Share                       $0.00            $0.01
Total Assets                   8,391,423        7,007,124
Shareholders' Equity           4,458,647        5,292,735
Average Shares Outstanding     2,493,500        2,430,000

                           Nine months ended September 30
                                 1995             1994
                             ------------     ------------
Sales                        $13,790,955      $13,411,947
Income (Loss)
  - before reserve              (250,227)         (98,110)
  - reserve for closing costs   (656,934)               0
Net Income (Loss)               (907,161)         (98,110)
Per Share
  - before reserve                ($0.10)          ($0.04)
  - reserve for closing costs     ($0.26)           $0.00
Net Income (Loss)
   per Share                      ($0.36)          ($0.04)
Total Assets                   8,391,423        7,007,124
Shareholders' Equity           4,458,647        5,292,735
Average Shares Outstanding     2,493,500        2,430,000

CONTACT: Wendy Lowrie, Investor Relations, 604/684-6451