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Non-Tech : KKRO Koo Koo Roo -- Ignore unavailable to you. Want to Upgrade?

To: edna lipiner who wrote (417)	4/7/1998 9:59:00 PM
From: Michael Berkowitz	Read Replies (1) \| Respond to of 479

This will be a tremendous boost: LOS ANGELES, April 7 /PRNewswire/ -- Koo Koo Roo, Inc. (Nasdaq: KKRO - news), announced today that it has signed a License Agreement with a group of restaurant operators and investors, including Richard Adamson, Mace Neufeld, Michael Caine and Claudio Pulze of Langias Brassierie, to license its Koo Koo Roo California Kitchen concept in England. Michael Caine and Claudio Pulze are involved in numerous restaurants in England. The agreement provides for a development schedule for the Licensees to build and open a minimum of ten restaurants during the next five years. Koo Koo Roo will receive up front license fees and continuing royalty payments based on the revenues of these restaurants. Koo Koo Roo will not be required to supply any of the required capital. Pursuant to the License Agreement, the Company is required to assist the Licensee with the opening of the first stores, including training of store personnel. Commenting on the License agreement, Bill Allen, Koo Koo Roo's Chief Executive Officer, said ''Our strategy is now to use licensing agreements to expand our Koo Koo Roo concept internationally. The licensee is comprised of first rate restaurant operators and investors. This strategy is intended to allow us to leverage our investment in our brand, without the need to provide the capital requirements of a new venture.'' As previously announced, new management is taking significant steps to exit businesses not related to the Koo Koo Roo restaurant business (including Color Me Mine, Inc. and certain Arrosto operations), close Koo Koo Roo stores owned by the Company and not located in core markets and reduce corporate staffing levels and related corporate overhead costs. As also previously announced, implementation of these strategies will result in a restructuring charge of $10.0 to $12.0 million for the first quarter ended March 31, 1998. Commenting on these actions, Mr. Allen stated, ''The restructuring which has taken place at our Company results in today's new Koo Koo Roo. As I have said before, if I would characterize our mission at Koo Koo Roo in one word, it would be focus. We are optimistic about our ability to stay focused on our core Koo Koo Roo brand in the California and Nevada markets and the achievement of bottom line results. Our key short-term objectives are to divest the Company of non-core assets, including Color Me Mine and Arrosto, maintain low corporate overhead and move toward controlled growth. Our long- term plans include the growth of our core concept throughout the country at the appropriate time. During 1998, we anticipate the need to raise a moderate amount of growth capital to help achieve our development plans in key markets. Finally, we will continue to pursue international licensing agreements with quality partners.'' Further commenting on this restructuring, Lee A. Iacocca, Acting Chairman of the Board, stated, ''This management team, led by Bill Allen who has impressed me immensely in a short period of time, has effectively mapped a focused strategy for our core brand, Koo Koo Roo. The Board has enthusiastically endorsed this restructuring. The Board will look to Mr. Allen to continue with the objectives he has defined and we will monitor senior management's progress to ensure those objectives are achieved.''