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JB'S RESTAURANTS INC. ANNOUNCES PLANS TO SELL APPROXIMATELY 940,000 SHARES OF CONVERTIBLE PREFERRED STOCK

 SALT LAKE CITY, Aug. 19 /PRNewswire/ -- JB's Restaurants Inc. (NASDAQ: JBBB) today announced its plans to sell approximately 940,000 shares of a new issue of the company's convertible preferred stock to ABS MB (JB) Limited Partnership ("ABS"), of which the general partner is ABS MB Ltd., the merchant banking affiliate of Alex. Brown & Sons Inc. The company and ABS have entered into an agreement in which ABS agrees to pay approximately $5.2 million to the company in exchange for the preferred stock which is convertible into approximately 17 percent of the company's common stock. The transaction is expected to close in October. David E. Pertl, chief financial officer, commented, "The infusion of capital will give the company additional funds for continued development of HomeTown Buffet restaurants. A sixth HomeTown Buffet restaurant is opening in Albuquerque, N.M., this week, and the company is scheduled to have a total of eight HomeTown Buffet restaurants operating by Dec. 31, 1993. We have selected several other sites and continue to identify potential HomeTown Buffet restaurant locations and plan to open 10 to 12 during our fiscal year ended Sept. 26, 1994."
 The agreement between the company and ABS is subject to certain customary conditions and contingent on HomeTown Buffet Inc., the franchisor of the HomeTown Buffet restaurant concept, successfully completing its initial public offering which was announced on Aug. 12, 1993. The company has a 23 percent ownership position in HomeTown Buffet Inc.
 The agreement also grants to ABS, as holder of the preferred stock, liquidation preferences, rights to approve certain significant corporate transactions and rights to name two of the nine board members of the company. William L. Paternotte, who has served on the board since 1985, will be one of the two directors initially named by ABS. Clark D. Jones, chairman and chief executive officer, commented, "We are pleased with the addition of ABS as a major shareholder and look forward to the contribution of the additional directors as we move the company forward."
 JB's Restaurants Inc. has restaurant operations in 11 western states. It currently operates 102 JB's family-style restaurants and is franchisor of 12 additional JB's restaurants. It also operates 12 franchised Sbarro restaurants and five franchised HomeTown Buffet restaurants, with a sixth HomeTown Buffet restaurant scheduled to open this week in Albuquerque.
 -0- 8/19/93
 /CONTACT: David E. Pertl, VP and CFO of JB's Restaurants, 801-974-4300/
 (JBBB)


CO: JB's Restaurants Inc.; ABS MB Limited Partnership ST: Utah IN: LEI SU:

BP-LS -- LA004 -- 4186 08/19/93 08:46 EDT
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Publication:PR Newswire
Date:Aug 19, 1993
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