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MAGIC RESTAURANTS REPORTS FOURTH QUARTER/YEAR END RESULTS; FISCAL 1993 IS FIRST PROFITABLE YEAR; WARRANT PRICE CUT

 YONKERS, N.Y., Nov. 23 /PRNewswire/ -- Magic Restaurants, Inc. (NASDAQ: MGIK, MGIKW), which owns and operates multi-concept table service restaurants, today reported sales and earnings for the fourth quarter and fiscal year ended June 30, 1993.
 Fourth quarter net loss was $129,006, or 8 cents per share, on revenues of $4,864,564, compared with a net loss of $307,177, or 17 cents per share on revenues of $2,650,899 for the same period last year.
 Net income for fiscal 1993 was $252,707, including over $400,000 of non-recurring expense, or 5 cents per share, compared with a net loss of $518,033, or 32 cents per share for the prior year. Revenues rose 52 percent for the year, to $15,570,510, from $10,217,647 for fiscal 1992.
 The fiscal 1993 periods benefited from a gain on discounting of a note payable of $259,000, or 6 cents per share.
 At the same time, the company announced that the exercise price of each of the company's "Magic Warrants" has been adjusted from $4.41 to $4.25. Each warrant entitles the purchaser to 1.6 shares of common stock or an effective exercise price of $2.66 per common share.
 The warrants expire Aug. 6, 1996.
 Gary Rogers, president and chief executive officer, said, "Magic Restaurants was profitable for the first time in fiscal 1993, as we benefited from our aggressive acquisition and expansion program and an improving economic climate."
 During the year, the company acquired and integrated into its system five Carmella's Cafes restaurants, in Northern New York State, and converted its Rockwells American Restaurant in Scarsdale, N.Y., to a Carmella's. Carmella's feature a variety of fresh salads, pastas and entrees with an Italian flavor.
 "We are pleased with the performance of our five Red Robin Burger and Spirits Emporium, and we will soon open a new Red Robin in Levittown, Long Island adjacent to Nassau Mall.
 "Our acquisition program is continuing in fiscal 1994. We are in the due diligence stage of negotiations to purchase the 15-unit American Cafe restaurant chain from Monolith Enterprises, Inc., a subsidiary of W.R. Grace & Co., and intend to franchise the American Cafe concept," Rogers added. The existing American Cafe restaurants are located in the Washington, D.C.-Baltimore metropolitan area, and generate annual gross sales of more than $20 million.
 Magic Restaurants currently owns and operates 12 restaurants in New York and New Jersey, under the names Red Robin Burger and Spirits Emporium and Carmella's Cafes.
 MAGIC RESTAURANTS, INC.
 Financial Highlights
 Three Months Year
 6/30/93 6/30/92 6/30/93 6/30/92
 Revenues $4,864,564 $2,650,899 $15,570,510 $10,217,647
 Income (loss) from
 operations 27,832 (200,251) 455,854 (257,457)
 (Loss) before
 extraordinary
 benefit (139,006) (307,177) (6,293) (518,033)
 Extraordinary
 benefit (a)(b) 10,000 --- 259,000 ---
 Net income (loss) (129,006) (307,177) 252,707 (518,033)
 Income per common share:
 Before extraordinary
 benefit (.08) (.17) (.01) (.32)
 Extraordinary
 benefit (a)(b) --- --- .06 ---
 Net income (loss) (.08) (.17) .05 (.32)
 Average shares
 outstanding 2,318,626 1,801,308 3,417,650 1,640,178
 (a) Gain on discounting of a note payable.
 (b) Utilization of income tax carryforward.
 -0- 11/24/93
 /CONTACT: Gary Rogers, president and CEO of Magic Restaurants, 914-969-0600/
 (MGIK)


CO: Magic Restaurants, Inc. ST: New York IN: LEI SU: ERN

LG-TW -- NY070 -- 7414 11/23/93 16:51 EST
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Date:Nov 23, 1993
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