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JB'S RESTAURANTS INC. ANNOUNCES AN AGREEMENT TO SELL SBARRO RESTAURANTS AND DISPOSE OF CERTAIN OTHER PROPERTIES

 SALT LAKE CITY, Oct. 25 /PRNewswire/ -- As part of its strategic plan to concentrate growth on the HomeTown Buffet concept, JB's Restaurants Inc. (NASDAQ: JBBB) announced today the signing of an agreement to sell seven of its Sbarro restaurants and return its exclusive area development rights to Sbarro Inc. The transaction is expected to close in the next 30 days. The company has also disposed of, or will be disposing of, certain other properties, including its remaining Sbarro restaurants, and will be writing off costs incurred in seeking financing in fiscal 1993.
 As a result of these activities, the company intends to record a pre-tax charge of approximately $4.0 million in its fiscal fourth quarter. The effect of this charge will be partially offset by the previously reported $1.7 million gain on the sale of HomeTown Buffet Inc. preferred stock. The company will report a net loss for the year when it reports its audited results the second week of November.
 "The company intends to open 10 to 12 HomeTown Buffet restaurants per year and can best use its resources for this purpose," commented Clark D. Jones, chairman and chief executive officer. "The sale of the seven restaurants and return of the area development rights also gives Sbarro Inc. an opportunity to better develop these markets."
 JB's Restaurants Inc. has restaurant operations in 10 western states. The company operates 97 JB's family-style restaurants and is franchiser of 15 additional JB's restaurants. It also operates six franchised HomeTown Buffet restaurants and owns an approximate 16 percent interest in HomeTown Buffet Inc. (NASDAQ: HTBB) the franchisor of HomeTown Buffet restaurants.
 -0- 10/25/93
 /CONTACT: David E. Pertl, VP and CFO, 801-974-4300/
 (JBBB HTBB)


CO: JB's Restaurants Inc.; HomeTown Buffet Inc. ST: Utah IN: SU:

MF-LM -- LA044 -- 6577 10/25/93 17:40 EDT
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Publication:PR Newswire
Date:Oct 25, 1993
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