PHOENIX--(BUSINESS WIRE)--Aug. 10, 1999--Wrapsters Inc.
(OTC BB:WRAP.O) and NYB Foods Inc. announced Tuesday that it has signed
a letter of intent to acquire Mesa, Ariz. based New York Burrito
restaurants, franchisor of the largest Wrap chain in America.
Since January 1997 when only two stores were open New York
Burrito has averaged an opening pace of one new restaurant every 11
days. New York Burrito is the second fastest growing restaurant chain
in America when compared to the Top 50 Growth Chains as outlined in
the July 15, 1999 issue of Restaurant Business just ahead of
Quizno's(R) (Nasdaq:QUIZ.O) and Pappa Johns Pizza(R) (Nasdaq:PZZA.O).
NYB Foods Inc. began franchising its limited cooking, central
preparation concept in 1996 and specializes in serving giant exotic
burritos, gourmet wraps and smoothies under its brand name New York
Burrito Gourmet Wraps.
It now has operations in 18 states and Puerto Rico. Current
annualized system-wide sales are approximately $15 million. The brand
includes two upscale design concepts, Classic and High Tech plus a
highly efficient kiosk alternative for dual branding.
New York Burrito is also a national co-branding partner with
TCBY(R) (NYSE:TBY.N). The latest expanded High Tech look, New York
Burrito "Uptown Cantina" will debut later this year in Charlotte, N.C.
Tom Metzger, president and Clyde Culp III co-founders of
Wrapsters Inc., remarked that "they are excited about the prospects
for the future with the addition of the New York Burrito brand and we
expect to complete the acquisition by September 1. They further
announced that Robert Palmer upon completion of this acquisition, will
assume the post of chairman of Wrapsters."
Palmer said, "I am very excited about this new direction and
look forward to building and expanding not only the New York Burrito
brand, but placing ourselves in the position of expanding with other
brands as well. We all feel very confident that using the New York
Burritobrand can build Wrapsters Inc. into a very viable market
force in a very short time."
For more information, visit Wrapsters at www.wrapsters.com and
New York Burrito at www.newyorkburrito.com.
www.sanfranciscowraps.com
Forward Looking Statements:
This news release contains forward looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, which
provides a new "Safe Harbor" for these types of statements.
To the extent statements in this news release involve, without
limitation, product development and introduction plans, the company's
expectations for growth, estimates of future revenues, earnings, cash
flow, franchise sales, balance sheet items, forecasts and/or demand
for product and for the industries in which the company operates or
any other guidance of future periods, these statements are forward
looking.
The company assumes no obligation to update forward looking
statements.
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CONTACT: Wrapsters Inc.
Bill Gallagher, 210/824-2496
or
NYB Foods Inc.
Robert Palmer, 800/711-4036
KEYWORD: ARIZONA NEW YORK NORTH CAROLINA
INDUSTRY KEYWORD: FOODS/BEVERAGES MERGERS/ACQ
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