TAM Restaurants Reports Second Quarter Results.

Business Editors

NEW YORK--(BUSINESS WIRE)--May 23, 2000

Comparable sales increased 9.2% for the Quarter and are up 14.6%

for the First Half of Fiscal 2000

TAM Restaurant's Inc: (Nasdaq: TAMR) today reported revenues for the thirteen weeks ended March 29, 2000 of $2,342,000 up 9.2% versus the $2,145,600 reported for the comparable period ended March 31, 2000. For the twenty-six weeks ended March 29, 2000 sales were $6,988,000, up 14.6% versus the $6,101,000 reported for the comparable period the prior year.

TAM reported a net loss for the quarter of $1,866,000 or $.46 per share, as compared to a loss of $708,000 or $.20 per share for the same period the prior year.

Frank Cretella, TAM's President and CEO remarked: "Our second quarter results reflect the negative impact of several unique non-recurring events, plus some management problems at Lundy's in Brooklyn. The non-recurring events include expenses relating to securing the Boathouse lease renewal, a sales tax audit for 1989-94 and the ramp up of corporate infrastructure to prepare for the expansion. We have taken actions and made management changes to deal with these problems so that expenses can track to our plan"

The Company announced the following management changes. Mr. Anthony Golio has been promoted from Vice President of Operations and Finance to Executive Vice President and Chief Operating Officer and has been given full responsibility and authority for day-to-day operations. Mr. Golio has also been elected Chief Financial Officer. Ms. Christine D' Ottavio was recruited from the Company's Public Accounting firm, BDO Seidman, to become Controller. Mr. Richard Besgen, the General Manager of American Park has been designated the General Manager of Lundy's Times Square and will be spending time at Lundy's in Brooklyn to recruit and train the staff for Times Square.

Mr. Cretella remarked: "The hiring of Christine D' Ottavio as Controller enables Mr. Golio to go back out into the field and improve the level of our execution and cost control. This frees me to spend the bulk of my time building the Lundy's at Times Square and pursuing other revenue generating opportunities"

TAM also announced that New York City's Concession Review Committee had held up making a decision on the award of a new license for the Boathouse complex in Central Park. As previously announced, the Parks Department notified TAM in March that they had decided to recommend the new Boathouse contract to another party. On April 10th the Company presented testimony at a public hearing before the Franchise Concession and Review Committee that the Company believed that The Parks Department had made a technical error in scoring TAM's bid and requested that the Request For Proposal be submitted for a rebid. The Committee chose not to approve The Parks Department's recommendation and requested that TAM provide additional written testimony, which was submitted on April 24th. The Committee is still reviewing the written testimony.

TAM's Chairman Kenneth Harris remarked: "We believe that our proposal for the Boathouse license renewal is the best from both a financial and operational viewpoint and are encouraged by the diligence of the Mayor's Office in evaluating our point of view. We fully intend to pursue all of our legal remedies with respect to this license renewal."

Mr. Harris also remarked: "Regardless of what happens with the Boathouse we will continue our expansion. The funding for the Times Square Lundy's is in escrow and construction is underway. We expect Times Square Lundy's to open by year-end. We are also actively pursuing other revenue generating opportunities, including management contracts and off premises catering"

Certain statements in this press release constitute "forward-looking statements" with the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, risks relating to the opening of new restaurants, our capital requirements, availability of financing, continued popularity of existing and new restaurants, seasonality and other risks detailed in the Company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.

TAM Restaurants, Inc. operates Lundy Bros. Restaurant in Brooklyn, NY; The Boathouse Complex in New York's Central Park; and American Park at the Battery in New York's Historic Battery Park. TAM is a public company traded on the NASDAQ small cap market under the symbol TAMR.

                        TAM Restaurants, Inc.
                        Financial Highlights


                Three Months Ended                Six Months Ended
              March 29,        March 31,    March 29,      March 31,
                2000            1999          2000             1999
Sales        $ 2,341,944    $ 2,145,607    $ 6,988,094    $ 6,100,150
EBDITA        (1,317,114)      (196,933)      (913,658)       228,769
Income (loss)
 From
 Operations   (1,548,756)      (490,779)    (1,366,734)      (367,157)
Net Income
 (loss)       (1,865,781)      (708,449)    (1,844,929)      (822,904)
Net Income
 (loss) per
 common
 share -
 basic and
 diluted     ($     0.46)   ($     0.20)   ($     0.50)   ($     0.23)
Weighted
 average
 number of
 common
 shares
 outstanding
 - basic and
 diluted       4,073,000      3,503,000      3,791,000      3,503,000