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EDUCATION ALTERNATIVES REFUTES CHARGES REGARDING SEC INVESTIGATION AND QUESTIONABLE ACCOUNTING

 MINNEAPOLIS, Nov. 23 /PRNewswire/ -- Education Alternatives, Inc. (NASDAQ-NMS: EAIN) refuted charges made in a CNBC report today claiming that the company may be the target of a Securities and Exchange Commission investigation and that the company's accounting practices are "unethical."
 John T. Golle, chairman and chief executive officer of Education Alternatives said: "We have not been notified by the SEC of any investigation by the SEC relating to the company."
 Regarding claims about the company's accounting practices as they relate to revenue recognition, Golle said that the company's methods of accounting for revenue are in accordance with generally accepted accounting principles and have been fully disclosed in previous filings with the SEC. He added that the company's financial statements for the year ended June 30, 1993, were recently audited by Arthur Andersen and Company and received an unqualified opinion. Arthur Andersen and Company has served as the company's independent public accountants since 1988.
 CNBC's Dan Dorfman reported that Jacqueline McLean, comptroller for the City of Baltimore, said that the company's method of accounting for revenues is "unethical." Dorfman also reported speculation that Education Alternatives is being investigated by the SEC.
 McLean also told a Dow Jones reported that "as of last week, Education Alternatives had yet to outfit nine schools with computers." Education Alternatives CEO Golle noted that there are currently over 1,000 computers in the nine Baltimore schools for which the company provides management services.
 Education Alternatives currently provides management services of these schools under a $26.7 million contract with the City of Baltimore and recently signed contracts for management services in two additional Baltimore schools. "The documented progress students are making in the schools under our management and the school district's recent decision to retain us to provide management services for two additional schools affirm the value of our work," said Golle.
 -0- 11/23/93
 /CONTACT: John T. Golle, chairman and CEO, Franklin L. Kuhar, chief financial officer of Education Alternatives, 612-832-0092/
 (EAIN)


CO: Education Alternatives, Inc. ST: Minnesota, Maryland IN: SU:

CP-DB -- MN028 -- 7467 11/23/93 18:57 EST
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Publication:PR Newswire
Date:Nov 23, 1993
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