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CARL KARCHER ENTERPRISES TO BECOME SOUTHERN CALIFORNIA AND SACRAMENTO AREA DEVELOPER FOR BOSTON CHICKEN

 ANAHEIM, Calif., Jan. 10 /PRNewswire/ -- Carl Karcher Enterprises, Inc. (NASDAQ: CARL) and Boston Chicken, Inc. (NASDAQ: BOST) today announced they have signed a definitive letter of intent under which Carl Karcher Enterprises will become an area developer and franchisee of Boston Chicken. Under the terms of the agreement, Carl Karcher Enterprises will acquire the right to develop and operate up to 300 Boston Chicken food service stores in Southern California and Sacramento, at least 200 to be developed over the next five years.
 Boston Chicken, Inc., headquartered in Naperville, Ill., operates and franchises food service stores specializing in convenient, quality meals featuring rotisserie roasted chicken, fresh vegetables, salads and other side dishes, such as mashed potatoes made from scratch. The Boston Chicken system comprises the largest chain in the United States dedicated primarily to rotisserie roasted chicken, with 221 stores operating in 19 states.
 The territory covered by the agreement is the largest granted by Boston Chicken to an area developer to date, and will provide Carl Karcher Enterprises exclusive development rights to the Los Angeles, Orange, Riverside, San Bernardino, Ventura, San Diego, Santa Barbara, Palm Springs and Bakersfield markets, as well as the city of Sacramento. Financial terms of the agreement were not disclosed.
 Donald E. Doyle, president and chief executive officer of Carl Karcher Enterprises, said the company plans to establish a separate division, with a separate management team for the Boston Chicken units. He said it expects to open at least 60 stores by the end of 1995. Doyle noted that the expansion plans with Boston Chicken will not impact the revitalization and expansion strategies currently underway at Carl's Jr.
 "We are excited about the opportunity to associate with one of the most attractive and fastest growing food concepts in the nation," said Doyle. "Moreover, it will permit us to add another important growth vehicle in addition to our Carl's Jr. business and to capture a new consumer market segment which is distinct and separate from our current Carl's Jr. restaurant customers."
 "Our agreement with Carl Karcher Enterprises is in keeping with our expansion strategy of aggressively penetrating local markets," said Saad J. Nadhir, vice chairman of Boston Chicken. "We believe the demographics and lifestyles of Californians make our concept particularly viable there. And we believe the Karcher organization's strong commitment to product quality and excellent customer service and their access to California real estate and operating experience are a great fit with Boston Chicken. We are confident our California roll-out will be a success."
 Carl Karcher Enterprises, Inc., currently operates 649 Carl's Jr. restaurants featuring charbroiled hamburgers and chicken sandwiches, primarily located in California, Nevada, Oregon, Arizona and Mexico.
 -0- 1/10/94
 /CONTACT: Roger Pondel of Pondel Parsons & Wilkinson, 310-207-9300 or 818-222-2864 (home); or Mark Stephens of Boston Chicken, 708-245-4512/
 (CARL BOST)


CO: Carl Karcher Enterprises Inc.; Boston Chicken Inc. ST: California, Illinois IN: LEI SU:

TW-LS -- LA016 -- 0429 01/10/94 09:04 EST
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Publication:PR Newswire
Date:Jan 10, 1994
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