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REG RESTRUCTURING PROGRESS

 IRVINE, Calif., Oct. 25 /PRNewswire/ -- The Restaurant Enterprises Group Inc. ("REG") announced today that it has executed a definitive agreement to acquire Chi-Chi's Inc. ("Chi-Chi's"), the operator or franchisor of 237 full-service Mexican restaurants, from Foodmaker Inc. ("Foodmaker"). Foodmaker's sale of Chi-Chi's is part of a $160 million investment in REG by Apollo Advisors L.P., Foodmaker and Green Equity Investors L.P. Both transactions were announced previously and are part of an overall restructuring of REG's capital structure.
 Completion of both the acquisition of Chi-Chi's and the new equity investment are subject to a number of conditions, including the sale of $425 million of new notes through a registered public offering, finalizing a new $150 million revolving credit facility for which REG has signed a commitment letter, and obtaining confirmation of REG's prepackaged plan of reorganization.
 In commenting on the latest development, Norman N. Habermann, REG's president and chief executive officer, said, "The execution of this agreement is a major step toward achieving the overall restructuring plan we announced last July."
 The Restaurant Enterprises Group Inc. operates 560 restaurants in 23 states and the District of Columbia. REG's restaurants include family dining concepts (Coco's and Carrows), Mexican dinnerhouses (El Torito and Casa Gallardo), traditional dinnerhouses (Reuben's and Charley Brown's), several unique specialty dinnerhouses, and licensing arrangement under which Coco's Japan operates or sublicenses over 200 Coco's restaurants in Japan and South Korea.
 -0- 10/25/93
 /CONTACT: Mike Casey, executive VP/CFO, 714-852-5763/


CO: Restaurant Enterprises Group Inc. ST: California IN: LEI SU: RCN

JB-MF -- LA045 -- 6605 10/25/93 18:30 EDT
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Publication:PR Newswire
Date:Oct 25, 1993
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