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VOLUNTEER CAPITAL CORPORATION ANNOUNCES FORMATION OF EMPLOYEE STOCK OWNERSHIP PLAN

 VOLUNTEER CAPITAL CORPORATION ANNOUNCES
 FORMATION OF EMPLOYEE STOCK OWNERSHIP PLAN
 NASHVILLE, Tenn., June 26 /PRNewswire/ -- Volunteer Capital Corporation (NYSE: VCC) announced today the formation of an Employee Stock Ownership Plan (ESOP) which will own 457,055 shares of the Company's 4,038,000 shares of outstanding common stock.
 Lonnie J. Stout II, chairman and chief executive officer of the company, said the common stock for the ESOP will be purchased from the estate of Jack C. Massey. Employees of the Company and its Wendy's and J. Alexander's restaurants will be eligible for participation in the ESOP after one year of service with the Company.
 "We believe that the ESOP will provide an outstanding opportunity for our employees to see real benefits from their hard work and service with the Company. We believe that our shareholders will benefit from the ESOP formation by more closely aligning the interests of the Company and its employees."
 Stout said the ESOP purchase price from the Massey estate was $3.75 per share. The purchase price was funded by a loan from the Company to the ESOP in the amount of the purchase price, which is to be repaid with interest over ten years.
 Following the purchase of the common stock by the ESOP, the Company also repurchased an outstanding warrant to purchase 1.5 million shares of Volunteer Capital common stock from the estate of Jack C. Massey. The warrant had provided the state the right to purchase the shares at a price of $3.00 per share. The Company paid the Massey Estate $600,000 to repurchase the warrant, which Mr. Massey had originally purchased from the Company for $500,000.
 J.C. Bradford & Co. acted as financial advisor to the Company in connection with the purchase of the common stock by the ESOP and the repurchase of the warrant by the Company.
 "We are pleased about the benefits for our employees and shareholders afforded by the ESOP formation and the warrant repurchase," Stout continued. "The cancellation of this warrant provides a significant benefit to our shareholders by eliminating the potential dilution associated with the additional 1.5 million shares. At the same time, we are confident that our available capital resources will allow us to execute our business plan for our J. Alexander's and Wendy's restaurants."
 Volunteer Capital is headquartered in Nashville and operates 51 Wendy's Old Fashioned Hamburgers restaurants in four states and currently has one J. Alexander's restaurant in Nashville.
 -0- 6/26/92
 /CONTACT: Lonnie J. Stout II, Volunteer Capital Corporation, 615-269-1900/
 (VCC) CO: Volunteer Capital Corporation ST: Tennessee IN: LEI SU:


CM -- CH001 -- 4085 06/26/92 08:42 EDT
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Publication:PR Newswire
Date:Jun 26, 1992
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