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MAIN STREET ANNOUNCES SALE OF DAIRY AND FOOD DISTRIBUTION OPERATIONS TO SUN STREET FOOD COMPANY

 SCOTTSDALE, Ariz., Jan. 3 /PRNewswire/ -- MAIN STREET AND MAIN INCORPORATED (NASDAQ-NMS: MAIN) announced today the sale of its dairy and food distribution operations to Sun Street Food Company, a private Phoenix-based company. The purchase price is payable in cash and notes and approximates Main Street's basis in the assets associated with the operations.
 The sale is designed to allow Scottsdale-based Main Street to focus on the development, operation and expansion of its T.G.I. Friday's restaurants, the company's primary business. Steven Sherman, chairman, chief executive officer and president of Main Street, stated, "This transaction reflects our previously announced plans to separate our Friday's restaurant operations from our dairy and food distribution operations. We believe that the interests of Main Street and its stockholders will be better served by focusing on our very successful and rapidly expanding restaurant operations."
 Mr. Sherman further stated, "I believe our dairy and food distribution operations are now low-cost producers and are poised for rapid growth. Since the acquisitions of Carnation Dairy Arizona and Dairy Maid Foods, we have invested a tremendous amount of management effort and capital in building a new infrastructure to be able to compete aggressively in the 1990s. We are pleased to put these operations in the capable hands of its operating managers and a very talented and respected local investor group while retaining a minority interest."
 Main Street recently announced plans to acquire all 20 T.G.I. Friday's restaurants owned by TGI Friday's Inc. In California, as well as franchise and development rights, which will allow it to open at least 38 new T.G.I. Friday's restaurants in California, Idaho, Montana, Utah and Wyoming by the end of 1998. Main Street currently owns and operates 15 T.G.I. Friday's restaurants in eight states.
 Sun Street was formed to acquire and operate the two companies which made up Main Street's food operations; Carnation Dairy, a well-known dairy food processor, and Dairy Maid, a distributor of frozen foods. Combined, the two companies have projected 1993 sales of $135 million. They employ nearly 320 people, with approximately 300 employees located in Arizona. Main Street retains a minority interest in Sun Street Food Company.
 Louis Carlo, former president of Main St. Food Company, the Main Street subsidiary that operated the two companies, will continue to lead Carnation Dairy and Dairy Maid for Sun Street as president, chief executive officer and a member of Sun Street's board of directors.
 Acquiring the two companies provides Sun Street with the opportunity to capitalize on Main Street's efforts to build successful food processing and distribution companies. According to David Eaton, a private investor and Sun Street board member, no major changes in the operations of the companies are expected.
 "Sun Street will make available substantial working capital to fund the continued growth of Carnation Dairy and Dairy Maid," Mr. Eaton said.
 Joining Eaton and Carlo on the board of directors are several other prominent business and community leaders: Jerry Colangelo, president and CEO of the Phoenix Suns; Mel Shultz, a private investor; Steven Sherman, CEO of Main Street; Joe Panter, CFO of Main Street; Greg Anderson, president of Sundance Venture Partners/El Dorado Investment Company, and John Heath, a private investor and the former CEO of L.S. Heath & Son's, founders of the Heath candy company.
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 /CONTACT: Robert McGeorge, vice president of Corporate Development of Main Street and Main Incorporated, 602-951-3200; or Andrew Jeske of Lippert/Heilshorn, 212-838-3777, ext. 109; or Denise D. Resnik of Sun Street Food Company, 602-956-8834/
 (MAIN)


CO: Main Street and Main Incorporated; Sun Street Food Company ST: Arizona IN: LEI SU:

LG-PS -- NY001 -- 8384 01/03/94 08:30 EST
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Publication:PR Newswire
Date:Jan 3, 1994
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