Round Table Company-Owned Restaurants Multiply; Acquisitions, New Openings Expected to Boost Count to 40.

WALNUT CREEK, Calif.--(BUSINESS WIRE)--June 2, 1999--

Round Table Development Company (RTDC), the operating affiliate of Round Table Franchise Corporation, franchisor of the Round Table restaurant concept, announced today it has completed acquisition of eight restaurants in Fresno and expects to boast a record total of 40 company-owned restaurants by the end of the year.

By coincidence, this year also happens to be Round Table's 40th anniversary.

"The acquisition of the Fresno restaurants, in addition to new company restaurants in Reno, Boise and the Southern California market, demonstrates once again our strong commitment to operating the concept we also franchise," said Robert McCourt, chief financial officer and senior vice president of development for Round Table Franchise Corporation. "Franchising will always remain the backbone of Round Table. The growing number of company restaurants, however, strengthens the system for existing and prospective franchisees."

As recently as four years ago, Round Table, unlike other large pizza restaurant chains, was not a significant company restaurant operator. Now the company restaurant affiliate is one of the system's largest multi-unit operators. The change was accomplished through a strategic program of acquisitions and new restaurant development in carefully selected markets.

McCourt notes that an expanding and profitable company restaurant affiliate buoys Round Table's position as a franchisor. "We've demonstrated that we can be successful restaurant operators and we are backing our strong belief in the Round Table concept with substantial resources to expand company restaurant operations."

Company restaurants are a valuable testing ground for operational improvements that are eventually introduced system-wide. "One of the most positive developments in our system over the past few years," said McCourt, "has been the use of company restaurants to assess and perfect system upgrades. Our new franchise offering for delivery-carryout only units (DCUs) is a good example." The offering, announced in January 1999, came after more than a year of DCU operations testing at a company-owned unit in Walnut Creek, Calif. Several of the new company store restaurants will be DCUs.

According to Bill Foley, vice president and general manager, Round Table Development Company, the recent Fresno acquisitions by Round Table complement an aggressive buildup of the Boise, Idaho market by RTDC that began in September 1998. "Four new Round Table restaurants are now operating in Boise, the latest being a dazzling 5,700 square-foot full-service restaurant at the Idaho IceWorld ice- skating complex," said Foley.

The company also opened a new restaurant recently in the Reno, Nevada market. Two additional restaurants are in development for Reno, which will bring the total in that market to 18 company-owned units by 2000.

Foley noted that recent acquisitions of existing restaurants include a highly successful full-service restaurant in the San Diego area and a unit at a retail mall in West Covina, Calif. "We also plan to open several new restaurants in the San Diego market by mid-summer," said Foley.

The Round Table Pizza franchise system comprises more than 530 franchised and company-affiliated restaurants in the states of California, Nevada, Washington, Oregon, Idaho, Utah, Arizona, Alaska and Hawaii. The first Round Table restaurant was founded in Menlo Park, California in 1959; franchise operations began in 1962. The Round Table Franchise Corporation, franchisor of Round Table Pizza, is based in Walnut Creek, California. Round Table System Sales in FY 1998 (July 1, 1997-June 30, 1998): 365 million dollars.